Article · ~6 min read

Earning Rs 6 lakh a year? Your in-hand salary after the new labour codes

Business Today · businesstoday.in Free Beginner India

An April 2026 worked example, with a tax expert, of how the Labour Codes' uniform definition of wages (basic, DA and retaining allowance at least 50% of total pay) reshapes a Rs 6 lakh CTC and its PF and gratuity.

  • Basic, DA and retaining allowance must make up at least 50% of total pay.
  • CTC stays the same; the split inside it changes.
  • Higher basic raises PF and gratuity, which can lower monthly take-home.
Open on businesstoday.in ↗

It answers 2 questions

  1. How do I run payroll for a small team in India?
  2. How do I calculate CTC and in-hand salary when I hire in India?

Read with it

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