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Labour Code tools

The four Labour Codes took effect on 21 November 2025, replacing 29 central labour laws. These calculators show what the changes mean for your payroll.

Salary and payroll come first: CTC to in-hand after PF, ESI, professional tax and income tax, the 50% wage rule that adds excess allowances back to wages, and state-wise Labour Welfare Fund deductions. Benefits and leave come second: gratuity old vs new, statutory bonus, 26-week maternity benefit and overtime at twice the rate.

Exits and compliance close the loop: full and final settlement within two working days, retrenchment compensation with the reskilling fund, standing orders at 300 workers, and a tailored checklist of registrations and committees for your headcount.

Frequently asked questions

How do the Labour Codes change my take-home pay?

If basic pay is under half of total pay, excess allowances are added back to wages. That raises PF and gratuity, which can lower monthly take-home on the same CTC. The CTC and wage-PF calculators show the exact impact.

Which calculator should HR run first?

Recheck salary structures against the 50% wage rule, then PF, ESI and gratuity. Use the compliance checklist to map registrations, committees and registers to your headcount.

Do the Codes change gratuity or bonus formulas?

Gratuity stays at 15 days' wages per year but now uses Code wages, and fixed-term staff qualify after one year. Bonus stays at 8.33% to 20% on the higher of ₹7,000 or the minimum wage.

The four Codes at a glance

Code on Wages, 2019

Minimum wages, a uniform definition of “wages”, timely payment, bonus and equal pay.

Industrial Relations Code, 2020

Standing orders, fixed-term employment, strikes, lay-off and retrenchment rules.

Code on Social Security, 2020

PF, ESI, gratuity, maternity benefit and social security for gig and platform workers.

Occupational Safety, Health and Working Conditions Code, 2020

Working hours, overtime, leave, safety, and a single registration for establishments.

Read: the 4 Labour Codes explained simply →