Posted inKey4comply Blogs

The 50% Rule: Can Your Employer Cut Your Basic Pay Under the New Wage Code?

The New Code on Wages has reshaped salary structures across India. The “50% Rule” requires that Basic Pay + Dearness Allowance (DA) must constitute at least half of total remuneration. This change ensures that statutory benefits like Provident Fund (PF) and Gratuity are calculated on a meaningful base. But can employers simply reduce your Basic Pay to comply? The […]