Real Examples

New Labour Code Salary Example 2026 — Before vs After

Stop guessing. See exactly how different salary bands are affected with real numbers. From ₹5 LPA to ₹20 LPA — every CTC tells a different story.

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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Detailed Salary Comparison Table

Old vs new take-home, PF growth, and monthly impact for 5 common CTC bands.

CTCOld Take-HomeNew Take-HomeChangePF Growth
₹5 LPADelhi · Basic 30%₹38,467₹36,467 ₹2,000+₹12,000/yr
₹8 LPAMaharashtra · Basic 35%₹60,867₹58,467 ₹2,400+₹14,400/yr
₹10 LPAKarnataka · Basic 40%₹75,133₹73,133 ₹2,000+₹12,000/yr
₹15 LPATamil Nadu · Basic 35%₹1,14,300₹1,09,800 ₹4,500+₹27,000/yr
₹20 LPAHaryana · Basic 30%₹1,54,467₹1,46,467 ₹8,000+₹48,000/yr

All examples use 12% mandatory PF, IT/ITES industry, and the respective state minimum wage floor.

Key Takeaways

  • Lower basic % = bigger impact. A 30% basic employee loses ~2× more take-home than a 45% basic employee.
  • PF grows for everyone. Both employee and employer contributions increase — double the retirement boost.
  • CTC stays the same. No pay cut. Just redistribution between cash and corpus.
Net result: You get less cash now, but retire richer. See PF growth details →
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Frequently Asked Questions

These examples use the same calculation engine as our live tool, with realistic CTC bands and state minimum wages. They represent typical Indian employee profiles across IT, manufacturing, and retail sectors.
Employees in the ₹5–15 LPA range with basic salary below 35% see the most dramatic shifts — often ₹2,000–5,000 lower monthly take-home but ₹4,000–10,000 more going into PF annually.
Yes! Use our free calculator at the top of this page. Enter your CTC, current basic %, and state to get your personalized before vs after breakdown.