{
    "version": "https://jsonfeed.org/version/1",
    "title": "ALL Labour Laws",
    "description": "",
    "home_page_url": "https://alllabourlaws.com",
    "feed_url": "https://alllabourlaws.com/feed.json",
    "user_comment": "",
    "author": {
        "name": "ALL"
    },
    "items": [
        {
            "id": "https://alllabourlaws.com/key-changes-to-wage-compliance.html",
            "url": "https://alllabourlaws.com/key-changes-to-wage-compliance.html",
            "title": "Key Changes to Wage Compliance",
            "summary": "With effect from 21 November 2025, the Government of India has operationalised the four Labour Codes, replacing 29 legacy labour laws. Key Legal Changes with respect to Wages 50% Rule - Allowances cannot exceed 50% of CTC. Means align wages, which are equal to at…",
            "content_html": "<p>With effect from 21 November 2025, the Government of India has operationalised the four Labour Codes, replacing 29 legacy labour laws.</p>\n<p><strong>Key Legal Changes with respect to Wages</strong></p>\n<ol>\n<li><strong> </strong><strong>Wage Definition &amp; Salary Structuring (Code on Wages, 2019)</strong></li>\n</ol>\n<ul>\n<li><strong>Statutory Change (Sec. 2(y))<br></strong>Wages are now defined as: Basic Pay + Dearness Allowance + Retaining Allowance</li>\n</ul>\n<p>50% Rule - Allowances cannot exceed 50% of CTC. Means align wages, which are equal to at least 50% of CTC. Exclusions (not counted within 50% cap): HRA, Overtime, Travelling allowance and Statutory bonus, etc.</p>\n<p>Compliance Impact: If Wages &lt; 50% of CTC → automatic reclassification</p>\n<p><strong>Impact of Wages Realignment- </strong>This increases:</p>\n<ul>\n<li>Provident Fund (PF)</li>\n<li>Gratuity</li>\n<li>Bonus liability</li>\n</ul>\n<p>Earlier, many companies structured salaries so that allowances made up a large proportion of CTC. Now, all the calculations of PF, Gratuity and Bonus will be based on this new wage definition.</p>\n<p><strong>Current Risk:</strong> Most companies follow a low basic + high allowance model, which is now non-compliant and requires restructuring.</p>\n<ul>\n<li><strong>Clearance of all dues Sec 17</strong></li>\n</ul>\n<p>All dues must be paid within 2 working days of: Retrenchment, Dismissal and Termination</p>\n<ul>\n<li><strong>No discrimination in wages(Sec. 3&amp;4) of code on wages Act- </strong>Every male and female should get equal wages for same amount/nature of work.</li>\n<li><strong>Minimum Wages- </strong>Will be notified by the appropriate govt. under Sec.5 &amp;6 of the Code on Wages. Must pay minimum wages.</li>\n<li><strong>Overtime- </strong>The overtime rate, which shall not be less than twice the normal rate of wages(Sec. 14 of Code on Wages).</li>\n</ul>\n<p><strong>Note- </strong>All the benefits like PF, Gratuity, Bonus, etc. will be based on this new definition of Wages. Also, even fixed-term employees are eligible for gratuity on a pro rata basis under S.56 of Code on Social Security 2020</p>",
            "author": {
                "name": "ALL"
            },
            "tags": [
            ],
            "date_published": "2026-07-10T21:43:12+05:30",
            "date_modified": "2026-07-10T21:43:20+05:30"
        }
    ]
}