Does your salary structure pass the labour codes?

Under the labour codes, wages are all remuneration minus a closed list of exclusions such as HRA and conveyance. If the excluded items come to more than half of remuneration, the excess is added back and treated as wages, which raises PF and gratuity.

Yes. It is not on the list of exclusions, so it counts as wages. Many structures calculate PF on basic and DA alone, which leaves special allowance out of a base the codes put it in.

Gross pay does not change. If the allowances the codes exclude from wages come to more than half of pay, the excess counts as wages, so PF and gratuity are calculated on more. The employee's share of PF comes out of take-home; the employer's share and gratuity add to cost.

At 12% of PF wages from the employee and 12% from the employer, part of which goes to the pension scheme (EPS). PF wages are wages as the codes define them: basic, DA and every allowance not on the exclusion list, plus any excess above half of pay. Where PF is restricted to the wage ceiling, the base is capped at ₹25,000 a month (₹15,000 before 17 September 2026).

No. The check runs on this page. Figures are sent only if you book a call and choose to send them.