{"id":1302905,"date":"2025-11-24T08:57:24","date_gmt":"2025-11-24T03:27:24","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1302905"},"modified":"2025-11-24T09:02:00","modified_gmt":"2025-11-24T03:32:00","slug":"new-labor-laws-salary-mandated-by-7th-but-overall-salary-can-reduce-for-it-employees","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/new-labor-laws-salary-mandated-by-7th-but-overall-salary-can-reduce-for-it-employees\/","title":{"rendered":"New Labor Laws: Salary Mandated By 7th, But Overall Salary Can Reduce For IT Employees"},"content":{"rendered":"\n<p>In a landmark reform, the Centre has brought into force four new labour codes\u2014Wages, Industrial Relations, Social Security, and Occupational Safety &amp; Health\u2014replacing 29 older laws. This marks the biggest labour rule overhaul since Independence, aimed at modernising India\u2019s workforce regulations and extending protection to employees across sectors including IT, MSMEs, textiles, media, and gig work.<\/p>\n\n\n\n<p>Prime Minister Narendra Modi described it as a \u201chistoric step for workers\u2019 welfare.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"579\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/11\/Screenshot-2025-11-24-at-8.55.56-AM-1024x579.png\" alt=\"New Labor Laws: Salary Mandated By 7th, But Overall Salary Can Reduce For IT Employees\" class=\"wp-image-1302911\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/11\/Screenshot-2025-11-24-at-8.55.56-AM-1024x579.png 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/11\/Screenshot-2025-11-24-at-8.55.56-AM-300x170.png 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/11\/Screenshot-2025-11-24-at-8.55.56-AM-768x434.png 768w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/11\/Screenshot-2025-11-24-at-8.55.56-AM.png 1418w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Salary Must Be Paid by the 7th of Every Month<\/strong><\/h2>\n\n\n\n<p>One of the most impactful changes is the <strong>mandatory salary payment timeline<\/strong>. All companies <a href=\"https:\/\/www.livemint.com\/economy\/salary-by-7th-every-month-indias-new-labour-codes-unveil-new-it-sector-pay-mandate-11763727367448.html\">must now pay employees by the <strong>7th of every month<\/strong><\/a>. The government says this will improve transparency, reduce wage disputes, and enhance financial stability for millions of workers.<\/p>\n\n\n\n<p>For IT and ITES employees\u2014many of whom faced payment delays under vendor or contract arrangements\u2014this is a major shift.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Equal Benefits for Fixed-Term IT Workers<\/strong><\/h2>\n\n\n\n<p>A significant reform for the IT sector is the <strong>parity in benefits<\/strong> for fixed-term and permanent employees. Fixed-term staff will now receive:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Provident Fund<\/li>\n\n\n\n<li>ESIC<\/li>\n\n\n\n<li>Medical insurance<\/li>\n\n\n\n<li>Gratuity (proportionate)<\/li>\n\n\n\n<li>Mandatory appointment letters<\/li>\n<\/ul>\n\n\n\n<p>NITES President Harpreet Singh Saluja said the codes address long-standing concerns in a <a href=\"https:\/\/www.indiatoday.in\/business\/story\/new-labour-code-explained-pay-structure-in-hand-salary-rise-fall-impact-basic-pf-deduction-2824336-2025-11-22\">sector heavily dependent<\/a> on contract roles, project staffing and vendor-based employment.<\/p>\n\n\n\n<p>However, he cautioned that misuse of fixed-term roles and \u201cconsultant\u201d classifications could continue unless enforcement is strict.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Take-Home Salary May Reduce<\/strong><\/h2>\n\n\n\n<p>The updated definition of \u201cwages\u201d now mandates that <strong>50% of total remuneration<\/strong> must be counted as wages (basic + DA + retaining allowance). This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PF<\/li>\n\n\n\n<li>Gratuity<\/li>\n\n\n\n<li>ESIC<\/li>\n\n\n\n<li>Other statutory contributions<\/li>\n<\/ul>\n\n\n\n<p>\u2026will be calculated on a higher base.<\/p>\n\n\n\n<p>According to labour law expert Alay Razvi, this <strong>does not force employers to raise basic pay<\/strong>, but it <strong>does raise deduction bases<\/strong>, which may <strong>reduce take-home salary<\/strong> unless companies restructure compensation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>No Retrospective Deductions<\/strong><\/h2>\n\n\n\n<p>Importantly, companies <strong>cannot demand past PF or ESIC shortfalls<\/strong>, as the new calculation applies only from the implementation date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A More Secure but More Regulated Workplace<\/strong><\/h2>\n\n\n\n<p>From social security coverage for gig workers to night-shift provisions for women, the codes aim to modernise India\u2019s workforce. For employees, especially in IT, the reforms promise greater protection\u2014though possibly at the cost of slightly lower in-hand pay.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=d8EOD4kRHdg\">Image Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a landmark reform, the Centre has brought into force four new labour codes\u2014Wages, Industrial Relations, Social Security, and Occupational Safety &amp; Health\u2014replacing 29 older laws. This marks the biggest labour rule overhaul since Independence, aimed at modernising India\u2019s workforce regulations and extending protection to employees across sectors including IT, MSMEs, textiles, media, and gig [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1302911,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[9002],"class_list":["post-1302905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-labor-code-2025"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Labor Laws: Salary Mandated By 7th, But Overall Salary Can Reduce For IT Employees - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/new-labor-laws-salary-mandated-by-7th-but-overall-salary-can-reduce-for-it-employees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Labor Laws: Salary Mandated By 7th, But Overall Salary Can Reduce For IT Employees - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"In a landmark reform, the Centre has brought into force four new labour codes\u2014Wages, Industrial Relations, Social Security, and Occupational Safety &amp; Health\u2014replacing 29 older laws. 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