New Wage Rule Changes Salary Structure, PF And Gratuity Rise As Take-Home Falls
Naba Zehra | Updated: April 10, 2026 09:00 AM IST
Your in-hand salary may look lower due to the new 50% wage rule changing salary structure. Allowances above 50% are now added to wages, increasing PF deductions. This reduces take-home pay but boosts PF contributions and gratuity. While there may be a short-term impact, long-term benefits like higher savings, pension, and gratuity improve. Understanding your salary breakup is now more important than ever.
