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Labour Codes: After the new Labour Codes were introduced by the Modi government many workers were worried that the new Labour Codes might reduce their monthly take-home salary. However in an important update the Labour Ministry has now clarified that for most employees this won’t happen. Under the new rules Provident Fund (PF) calculations will continue to be based on the existing Rs 15000 statutory wage ceiling meaning that the PF deductions. Here are all the details you need to know about what the government has said on the impact of Labour Codes on your salary. Impact of Labour Codes on your salary? Under the new code the PF amount both from you and your employer will remain capped at 12% of Rs 15000 each unless you voluntarily agree to contribute more. Moreover if that ceiling is used your monthly deduction doesn’t change and your in-hand salary will stay the same as before the new codes. What has government said on impact of new labour code? “The new Labour Codes do not reduce take-home pay if PF deduction is on statutory wage ceiling. PF deductions remain based on the wage ceiling of ₹15000 and contributions beyond this limit are voluntary not mandatory the ministry said. Impact on salary structure However salary structure changes still happen under the new codes such as requiring that basic pay and related allowances make up at least 50% of your total pay. If your company chooses to calculate PF on the full revised wage instead of the Rs 15000 limit then your PF deductions and retirement savings may go up and your take-home pay could reduce accordingly. Therefore in short it can be said that most employees will not see a drop in their in-hand salary unless they and the employer opt into higher PF contributions and employees do not need to worry.