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New Labour Code Salary Calculator — Calculate Your 2026 Take-Home Pay

India's four New Labour Codes — the Code on Wages, Code on Social Security, Industrial Relations Code and Occupational Safety Code — fundamentally restructure how your salary is split. The most consequential change for salaried employees is the 50% basic salary rule: your basic pay must be at least 50% of your gross CTC. This single rule cascades into higher PF deductions, lower in-hand pay and, over time, a larger gratuity corpus.

This calculator applies all four codes simultaneously. Enter your current CTC and it shows you your projected 2026 salary structure: new basic, revised HRA, recalculated PF contributions (both employee and employer), and the net take-home figure. Unlike generic salary tools, this one is calibrated to the EPFO circular dated January 2024 and the draft rules under the Code on Wages.

The wage definition ties minimum pay floors, social-security contributions and retirement benefits into one picture. Choose your state, industry and current basic share of CTC below; the comparison translates the rules into rupees per month so you can plan cash flow, PF and HR discussions with a single, consistent method.

Instant salary impact calculator

CTC daaliye, current basic structure select kijiye, aur dekhiye new wage definition ke baad monthly in-hand kitna change ho sakta hai.

Current Basic Salary % of CTC40%
Employee PF contribution preference

Current Monthly CTC

₹83,333

State wage floor used

₹20,358/month

Annual CTC band

10L

New wage base

₹41,667/month

New Monthly Take-Home

₹73,133

Calculated for Delhi with a IT/ITES salary structure.

⚠️ Your take-home salary will DECREASE by ₹2,000/month

📈 Your PF contribution will INCREASE by ₹1,000/month

This happens because basic salary is increased to 50% of CTC under the new labour code.

Annual Impact Overview:

Over a year, take-home changes by ₹24,000. Your PF corpus grows by ₹12,000 a year more, and your gratuity accrual increases by ₹400.65 each month.

ComponentOld StructureNew Structure
Basic₹33,333₹41,667
HRA₹16,667₹20,833
PF (employee)₹4,000₹5,000
PF (employer)₹4,000₹5,000
Gratuity accrual₹1,603₹2,003
Professional Tax₹200₹200
Net Take-Home₹75,133₹73,133
Confidence note: Estimate based on standard assumptions (12% PF, 50% basic rule, flat ₹200 PT). Actual numbers may differ based on employer policy and state-specific slabs.
This is an estimate based on new labour code rules.
Last updated: 30 March 2026

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Understand 50% basic salary rule →Check PF increase details →Learn about gratuity changes →

Current structure vs projected 2026 structure

Side-by-side monthly figures for a representative case: annual CTC ₹10,00,000, basic today at 40% of CTC, Delhi minimum-wage reference, mandatory 12% PF on basic (same rules as the calculator below). Your own numbers will differ by state, basic % and company policy—use the tool for your exact breakup.

ComponentCurrent structureProjected 2026 (50% basic)
Basic salary₹33,333₹41,667
HRA₹16,667₹20,833
Employee PF (12% of basic)₹4,000₹5,000
Employer PF (12% of basic)₹4,000₹5,000
Professional tax (est.)₹200₹200
Net take-home (monthly)₹75,133₹73,133
Gratuity accrual (monthly est.)₹1,603₹2,003

Employer cost impact

Your annual CTC can stay the same on paper while the employer's statutory PF burden rises, because both employee and employer PF are computed as a percentage of basic. When basic is lifted toward the 50% wage floor, the employer's 12% contribution on basic increases in lockstep with the employee's deduction.

In the illustrative case above, employer PF rises by about ₹1,000 per month (₹12,000 extra per year), before any other payroll or benefits costs. HR and finance teams should model this when budgeting headcount—especially for large populations where basic was historically kept low to cap PF.

Run the calculator with your CTC and basic % to see employer PF, employee PF and take-home together—those are the levers most affected by the wage definition change.

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How to read your result

The comparison table is monthly because that's how most employees experience the change. If your take-home falls, it usually means the same CTC is being redistributed into PF, employer PF, and gratuity-linked benefits instead of pure monthly in-hand salary.

The tool assumes a simplified professional tax estimate and uses a state wage reference for the basic-pay floor. If your company uses city-specific HRA logic, capped PF, or special allowances, treat the output as a strong estimate rather than payroll finality.

Need context before you present this to HR? Read the 50% basic salary rule explainer, the PF contribution guide, and the gratuity page.

Frequently Asked Questions

How accurate is this salary calculator?
This salary calculator is designed to provide high-fidelity mathematical estimates based on the published statutory formulas of the Indian Code on Wages (New Labour Code). It strictly adheres to the '50% basic salary rule,' which mandates that all allowances combined cannot exceed 50% of the total remuneration. However, accuracy for your specific payslip may vary depending on how your company handles flexible components like HRA, LTA, and specialized allowances. While we integrate standard Professional Tax slabs and EPF rates, your establishment's specific group insurance or voluntary PF contributions aren't captured. Treat this as a precise planning utility, not a substitute for your HR’s final payroll disbursement system.
Does this calculator work for all Indian states?
Yes, our calculator is built to be a comprehensive utility for employees across all 28 states and 8 Union Territories in India. Since the New Labour Code is a central legislation, the core definition of 'wages' and the 50% basic salary floor apply uniformly nationwide. However, we recognize that secondary components like State Minimum Wage floors and Professional Tax slabs vary significantly from Maharashtra to Karnataka. To ensure local relevance, users can select their specific state from our dropdown menu. This allows the tool to cross-reference the latest March 2026 state wage notifications, ensuring that your estimated salary doesn't fall below the legal minimum threshold for your specific region and skill category.
What is included in the new definition of wages?
Under the New Labour Code 2026, the definition of 'wages' has been radically simplified to prevent employers from inflating allowances to reduce PF and gratuity outgo. 'Wages' now primarily includes basic pay, dearness allowance (DA), and retaining allowance. Critically, if the sum of all other 'excluded' components—such as HRA, conveyance, and bonus—exceeds 50% of your total CTC, the excess amount is automatically added back to your 'wages' for statutory calculations. This means your PF contribution and gratuity eligibility will be calculated on at least 50% of your total salary package. This change ensures a more robust social security cushion for employees while standardizing payroll practices across the diverse Indian corporate landscape.
My company hasn't changed my salary structure yet — should I be worried?
While the New Labour Code has been a topic of intense discussion, the implementation timeline depends on the final notification of rules by both the Central Government and respective State Governments. If your company hasn't restructured your salary yet, it simply means they are operating under the existing legal framework, which is currently valid. However, proactive HR departments are already running shadow payrolls to estimate compliance costs. You shouldn't be 'worried,' but you should certainly be prepared. Once the Code is notified, companies will be legally mandated to ensure that your basic salary is at least 50% of your CTC. Use our calculator to anticipate how this shift will impact your monthly take-home vs. your long-term savings.
How do I calculate my exact PF deduction under the new rules?
Calculating your exact PF deduction requires identifying your new 'wage base' under the 50% rule. First, determine your total monthly CTC. If your current basic salary is less than 50% of this total, you must use 50% of the CTC as your new calculation base. Multiply this base by 12% to find your employee contribution. For example, on a CTC of ₹1,00,000, if your basic was ₹40,000, it must now move to ₹50,000. Your PF outgo would thus rise from ₹4,800 to ₹6,000. Our calculator automates this logic instantly across different state slabs, ensuring that you can see the precise rupee-value impact on your monthly bank credit without performing complex manual arithmetic.