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UDWages need to be 50% of CTC as per the new labour codes. That’s basic salary + DA.
So your salary can quietly shrink even when your CTC stays the same. 👀
From the November 21st labour code changes, at least 50% of your CTC now has to be treated as “wages” (basic salary + DA).
That sounds technical, but it hits you in 3 ways:
1️⃣ Higher PF deduction – 12% gets applied on a bigger basic
2️⃣ Higher gratuity in the future – same CTC, fatter final cheque
3️⃣ Lower in-hand today – unless your company actually increases your CTC
Short term = feels like a pay cut.
Long term = your retirement pot and gratuity become bigger whether you like it or not.
📌 What you should do now:
Check if your basic is now ~50% of CTC
See if your PF deduction has gone up
Ask HR how they’re implementing the new labour codes.
#udayanonmoney
@udayanonmoney
