The Economic Times News

Take home salary may drop for new employees under new Labour Code 2025: What jobseekers must know

A new labour code effective November 21, 2025, requires wages to be at least 50% of an employee's CTC. This change may increase overall salary costs by 5-10%. Employers might restructure CTCs for new hires to manage higher gratuity and PF liabilities. Existing employees' CTCs cannot be unilaterally reduced. Companies with lower wage components will see the most impact.