{
  "id": 4126944,
  "title": "Labour code impact: Rs 8k less pay likely on 15L CTC",
  "url": "https://urgent.news/2026/08/29/labour-code-impact-rs-8k-less-pay-likely-on-15l-ctc",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-29T06:31:48.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/legal/will/new-labour-code-impact-rs-8k-less-net-take-home-pay-likely-for-employee-with-rs-15-lakh-ctc-check-the-impact-on-ctcs-of-rs-10-lakh-rs-25-lakh-and-rs-50-lakh/articleshow/133605656.cms"
  },
  "original_language": "en",
  "account": "The new labour code enacted last year has introduced a rule where wages must account for 50% of an employee's total Cost to Company (CTC) when calculating Provident Fund (PF), bonus, and gratuity upon retirement. However, this 50% rule excludes certain components such as House Rent Allowance (HRA), gratuity payable on termination, retrenchment compensation, and a few others. If these exclusions surpass 50% of the total salary, the amount exceeding 50% is considered part of wages. This change in the definition of wages could impact employees' monthly net take-home salary.",
  "summary": null,
  "key_points": [
    "New labour code mandates 50% of CTC for PF, bonus, gratuity.",
    "Exclusions like HRA, retrenchment compensation exceed 50% of salary.",
    "Resulting shortfall reduces employees' net monthly take-home salary."
  ],
  "editors_take": "Employees may see a reduction in their take-home pay as a larger portion of their salary is considered wages and used to calculate Provident Fund, bonus, and gratuity.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}