India's new labor code requires wages at least half CTC
NewsBytes | April 22, 2026 10:40 PM CST
Perks above 50% count as wages
If perks like house rent or travel allowance make up more than 50% of your CTC, the extra will now count as wages, so PF contributions may go up, and higher statutory contributions can reduce take-home pay.
For someone earning ₹15 lakh a year, that could mean about ₹52,000 less take-home pay annually.
Companies might adjust packages to balance costs, but expect higher long-term savings and a bit less in your monthly bank account.
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