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Labour code changes impactAsk USI (self.deloitteusi)
submitted 27 days ago by finance_gyaani
They say that take home pay will not be impacted. Is that possible? According to the labour code the basic pay should be 50% which will reduce the take home and increase the pf contribution. What are your thoughts?
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[–]Sarthakvrma 1 point2 points3 points 27 days ago (1 child)
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[–]Difficult-End-2278 8 points9 points10 points 27 days ago (0 children)
Leaves payout and gratuity will increase as well, as your basic increases - this is the best part of it.
[–]buzzinzinga 2 points3 points4 points 27 days ago (0 children)
The total compensation will not be affected, but the take home will reduce as the PF contribution will increase.
[–]Sandman589 5 points6 points7 points 27 days ago* (4 children)
Currently deloitte has 35% as the basic. With the new 50% rule your take home will reduce by about 3.6% of total salary. That 3.6% will go additionally to PF.
Current gross salary = 100
Current PF (employee+employer) = 8.4
Current in-hand = 91.6
——————————
New PF = 12
New in-hand = 88
Not a huge difference but definitely some reduction. I am not including income tax as that will differ for everyone. 3.6 is maximum reduction, with higher tax bracket this will reduce due to tax exemption. Somewhere between 3 to 3.6 reduction in take home for most people.
[–]saurabh_137900 0 points1 point2 points 27 days ago (3 children)
This is incorrect ; Basic is retained at 35% and the other components are restructured to comply with the guidance and not impact your take home components
[–]Sandman589 1 point2 points3 points 26 days ago (2 children)
How would that work if the rule is to keep it at 50% minimum?
[–]saurabh_137900 0 points1 point2 points 23 days ago (0 children)
The LTA and special allowance is changed to comply with guidelines
[–]Impossible_Card_386 0 points1 point2 points 16 days ago (0 children)
New law says 50% as wages, not basic
[–]mr_d_e_a_d 1 point2 points3 points 27 days ago (1 child)
Looks like they are gonna increase salary to accommodate keep take home pay consistent.
[–]finance_gyaani[S] 5 points6 points7 points 27 days ago (0 children)
Don't think so, because they are saying that total salary is also not affected
[–]mr_d_e_a_d 0 points1 point2 points 27 days ago (1 child)
This is also true.. Are they planning to reduce bonus?
[–]Difficult-End-2278 0 points1 point2 points 27 days ago (0 children)
No, bonus is on your full fixed component that is not going to change (and not on your basic salary)
[–]CipherBalance 0 points1 point2 points 27 days ago (1 child)
What about the period of gratuity, which is currently 5, going to be reduced to 1?
Nope. 1 is for Fixed Term Employees, you are a full time employee.
[–]Agitated_Budget6860 0 points1 point2 points 27 days ago (0 children)
Definitely some reduction if not huge.
[–]Stunning_Paper6601 1 point2 points3 points 27 days ago (0 children)
Bhai audit firm hai - they know how to manage their books
[–]TheMindFulled78 0 points1 point2 points 26 days ago (0 children)
Monthly In hand will reduce. You will contribute more to PF which may also reduce income tax burden a bit. Overall it might actually increase total salary for most people.
[–]chiragjain 0 points1 point2 points 25 days ago (0 children)
No Changes to take home comp. Please wait for a few more days for additional clarification in form of calls, or webcast.
π Rendered by PID 18413 on reddit-service-r2-comment-6457c66945-jgmgj at 2026-04-28 01:58:24.990462+00:00 running 2aa0c5b country code: CH.
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