There was a big question among the employees regarding the new Labor Codes 2025 – will this reduce your In-Hand / Take Home Salary? The Ministry of Labor & Employment has clarified that PF (Provident Fund) deduction will still be based on the statutory ceiling of ₹15,000 and there will be no change on take-home salary. The 12% deduction in PF will remain the same at ₹ 1,800 as before, and if you want, you can make extra contribution through Voluntary PF (VPF). Say the salary of an employee is ₹60,000 — PF deduction will be ₹1,800 + ₹1,800 in both the old and new codes and the take-home salary will remain the same. However, in some cases, the build-in structure may change due to rules such as increasing the basic salary by more than 50%.
