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Salary Decrease Calculator India 2026

Use our dedicated salary decrease calculator to instantly see the real impact of the New Labour Code on your monthly in-hand pay. Just enter your CTC.

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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The Simple Explanation

In India, your CTC (Cost to Company) is divided into Basic Salary and Allowances. The government has ruled that Allowances can no longer exceed 50% of your total pay.

If they do, the excess amount is automatically treated as Basic Salary. Because Provident Fund (PF) is deducted from your Basic Salary (at 12%), a suddenly higher Basic Salary means a heavily increased PF deduction. The money isn't lost—it simply moves from your bank account to your PF account.

Frequently Asked Questions

This calculator applies the strict legal definition of the 50% wage baseline to your CTC. It is highly accurate for estimating the structural shift, though exact tax implications and employer-specific allowances may vary slightly.
Employees whose current basic salary is significantly below 50% of their CTC (e.g., 20% or 30%) will see the largest shift in their take-home pay.
Yes. If your basic salary is adjusted upwards to meet the 50% rule, the statutory 12% PF contribution must be calculated on this newly elevated basic salary amount.