Labour codes wage check
Enter a monthly salary structure. See whether wages are at least half of total pay under the Code on Wages, what is added back, and what it means for PF, gratuity and take-home pay.
- Checking salary structures after the labour codes
- Redesigning offer letters
- CAs reviewing a client's payroll
Monthly salary structure (₹)
Good to know
What counts as wages
Basic pay, dearness allowance and retaining allowance. HRA, conveyance, statutory bonus, overtime, commission and employer contributions are left out.
The 50% rule
If the left-out parts are more than half of total pay, the extra is added back to wages. So wages are always at least 50% of pay.
Why it matters
PF, gratuity, bonus and leave encashment are counted on wages. Higher wages mean a higher gratuity cost and, when PF is on actual wages, more PF.
What to do
Many companies raise basic to 50% of pay and adjust allowances, keeping CTC the same. Check the impact on take-home before you change.
Keep every salary structure compliant
USR Payroll is coming soon as an add-on to the USR People Suite: ₹29 ($0.33) per employee a month with the suite, or ₹49 ($0.56) on its own with HRIS, leave and attendance.
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