How is your HR team restructuring salary packages to comply with the 50% basic pay rule?
Anonymous HR Professional · 3 Aug 2026 · india · Technology · 11-50 employees
The implementation of the Code on Wages requires basic pay plus Dearness Allowance (DA) to equal at least 50% of gross salary. While this boosts long-term retirement savings via higher PF contributions, it reduces net monthly take-home pay for many mid-market employees. We are gathering insights on how companies are handling employee communications around this shift.
What they have tried
We have reviewed sample CTC structures and run projections on how adjusted PF contributions affect net monthly salaries across different pay brackets.
Desired outcome
Practical strategies from HR professionals on explaining the net take-home pay adjustment to employees without causing dissatisfaction.
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