The primary reason is the introduction of new wage rules, which are quietly reshaping how your salary is structured. The goal of these changes is to push more funds into long-term savings while focusing on reducing your monthly take-home pay. From 1 April 2026, the 50% wage rule requires basic pay plus dearness allowance to be at least half of your total CTC. If your basic salary was lower earlier, it must now be increased, thus leading to higher provident fund (PF) deductions and a dip in in-hand salary. Further, gratuity also rises substantially due to the higher basic salary.

Source: Mint April 09, 2026 11:51 UTC