This postponement of the implementation of the new labour code is likely to help the corporates that were worried about the changes. They will now have more time to realign the salary structures to comply with the new rules. For the salaried employees, this means that their take-home pay is unlikely to come down due to the new labour code. The new wage code mandates that basic pay will have to make up 50% of employees' CTC. Many private companies prefer to keep the allowances component higher and the basic salary lower.

Source: dna May 11, 2021 15:33 UTC