New Delhi, April 15 -- The implementation of new labour codes is set to change how salaries are structured, with potential implications for employees' tax outgo. Earlier, compensation packages typically included allowances such as house rent allowance (HRA), leave travel allowance (LTA), meal vouchers, and reimbursements that were either partially or fully exempt from income tax.

However, under the revised framework, the introduction of the 50% rule makes it mandatory that basic pay, dearness allowance, and retaining allowance together account for at least half of the total cost to the company (CTC). This effectively reduces the scope of tax-exempt allowances, increasing the taxable portion of salary, according to experts.

As a result, ...