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How will 50% basic pay rule under new labour laws help employees save tax?
short by Ashley Paul / on Thursday, 11 December, 2025
The new labour code's rules mandating minimum 50% of salary to be basic pay may help employees save tax. Experts said the rule will automatically increase an employee's contribution to EPF or NPS, with employer contribution under new tax regime remaining deductible under Section 80CCD(2). Under old tax regime, higher EPF contributions directly increase Section 80C savings in tax.
read more at Financial Express