Interactive Compliance Tools

Labor Code Compliance Calculator

Assess the financial impact of the 2026 Indian Labor Code mandate (requiring Basic Salary to constitute at least 50% of the total compensation package) on your payroll budget and employee take-home pay.

Monthly Salary Components

Monthly Gross CTC:₹1,00,000
Current Basic RatioAction Required
30.0%of Gross CTC

⚠ Under the new labor codes, Basic pay must be at least 50% of the total monthly wages. The current structure falls short by ₹20,000 per month.

Calculated Code Impact

Monthly Employer Cost Increase₹3,362Employer PF (12%) & Gratuity (4.81%) increase
Employee Net Take-Home Impact- ₹2,400Reduction in monthly cash-in-hand due to higher PF deductions

Rebalanced wage components

Basic Salary:₹30,000 → ₹50,000
Special Allowance:₹50,000 → ₹30,000
HRA Allowance:₹20,000 → ₹20,000
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