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.
Wage & PF (50% rule)
Check your salary structure against the 50% wage rule and see the PF, gratuity and take-home impact.
50% wage floor
Gratuity
Compare gratuity under the Payment of Gratuity Act and the Code on Social Security, including fixed-term staff.
15 days' wages a year
ESI
Employee 0.75% and employer 3.25% ESI contributions, with coverage and low-wage exemption checks.
0.75% + 3.25%
Salary calculator
Turn a CTC offer into monthly take-home pay after PF, ESI, professional tax and income tax, with the 50% wage rule applied.
Compliance checklist
A tailored checklist of registrations, registers, policies and committees under the four Codes.
Bonus
Statutory bonus of 8.33%–20% on the ₹7,000 or minimum-wage ceiling, with eligibility checks.
Maternity benefit
26 or 12 weeks of paid leave, adoption and miscarriage cases, and the medical bonus.
Overtime
Weekly hours, overtime at twice the wage rate and rest-day checks under the OSH Code.
Retrenchment
15 days' pay per year, notice pay and the reskilling fund contribution under the IR Code.
Full & final settlement
Work out an exiting employee's F&F dues and check the 2-working-day payment deadline under the Code on Wages.
Labour Welfare Fund
Employee and employer LWF contributions by state, with deduction months and deposit due dates.
Standing orders
Standing orders, grievance and works committees, and lay-off permission thresholds.
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.