New Delhi, June 11 -- India Inc. is using a wider menu of benefits and allowances to shield employees' take-home salaries from the impact of the new labour code, even as companies hand out muted salary hikes amid a sluggish jobs market.

This has resulted in a larger pool of employees selecting benefits this fiscal year, such as uniform allowance, professional development, car lease, driver's salary, internet and communication allowance, children's education and hostel allowance, and meal cards, among others.

"The current provisions on Code of Wages are mostly impacting salary structure design and companies are ensuring the right balance between compliance, cost management, and protection of employees' take-home pay," said Amit Otwani, a...