#salary-restructuring
Companies brace for take-home pay concerns on Labour Code-led salary restructuring
The key change in the new code is the definition of ‘wage’, an equivalent of the erstwhile ‘basic’ pay, which must be at least 50% of total pay, unlike the lower proportions typically used by most Indian companies
New labour code: Can higher gratuity and social security costs under Social Security Code, 2020 be offset by employers by salary restructuring ?
The recent notification of the Social Security (Central) Rules, 2026 under the Code on Social Security, 2020 marks a significant shift in India’s wage and social security compliance framework. As the expanded definition of “wages” increases social security li…