Posted inKey4comply Blogs

The “Special Allowance” Trap: Why Your Company’s Salary Restructuring May Be Non-Compliant Under the Code on Wages

On 21 November 2025, the Government of India brought into force the four Labour Codes, consolidating 29 central labour legislations. Among the most significant shifts is the uniform definition of “wages” under Section 2(y) of the Code on Wages, 2019. For decades, Indian employers structured salaries with a low basic pay and a heavy reliance on allowances; keeping […]