New salary rules in India: What the 50% wage norm means for EPF, gratuity and take-home pay
New Delhi, April 7 -- Your salary this month may look different from usual. From 1 April 2026, the government has implemented a set of labour reforms that change how salaries are structured for millions of employees across India.
Under these reforms, an employee's in-hand salary from April onwards may appear lower than before. The changes are part of the government's push to strengthen long-term savings and social security benefits for employees.
Four major labour codes introduced by the Ministry of Labour and Employment, and implemented in November last year, now form the backbone of India's recent labour reforms. These rules aim to replace multiple outdated laws with a simplified, unified wage framework.
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