New Labour Code Salary Calculator: Old vs New PF, Take-home

This free old vs new salary comparison calculator shows how the new labour codes change your salary compared with the old rules, for the same CTC, side by side. To design a fresh salary structure instead, use the salary breakup calculator. Enter your monthly CTC, Basic + DA % and HRA %, and it shows:

• how the 50% wage rule changes your statutory wages, and how much is added back;
• the change in PF, ESI, bonus and gratuity, for you and for the employer;
• your gross salary, deductions and take-home pay under both rule sets, a month and a year;
• a chart and a step-by-step table of how wages are worked out.

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New Labour Code Wage Calculation Formula

Under the Code on Wages 2019, wages are Basic pay, DA and retaining allowance. Allowances such as HRA and conveyance are excluded, but if the excluded amounts are more than half of total remuneration, the excess is added back to wages. So statutory wages can never be less than 50% of the pay. PF, ESI, bonus and gratuity are then worked out on those wages. Bonus is for employees with wages up to ₹21,000 a month.

Old vs New Salary for ₹40,000 CTC (Calculator Default)

Basic + DA at 30% of CTC (₹12,000), HRA at 50% of Basic, Professional Tax ₹200, PF ceiling and 13% employer PF:

Basic is only 33.65% of the new gross, so ₹5,831 of allowances is added back to wages. Wages of ₹17,831 are now within the ₹21,000 ESI limit, so ESI also starts. The CTC stays ₹40,000, but more of it goes to PF, ESI and gratuity, and take-home falls by ₹2,453 a month.

Impact at Different CTCs (Basic + DA 30%)

At ₹1 lakh both regimes already hit the ₹25,000 PF ceiling, so employee PF does not change and only gratuity rises.

Impact by Basic + DA Share (₹50,000 CTC)

A structure where Basic + DA is already half the pay is not affected. At 40%, wages cross ₹21,000 under the new rule, so the statutory bonus stops, which is why employer cost falls slightly in that case.

Where the Labour Codes Stand (October 2026)

States make their own rules for matters such as minimum wages and professional tax, so check your state's notification before restructuring salaries.

How to Use This Calculator

1. Enter your monthly CTC, your Basic + DA % of CTC and HRA % of Basic, or use the sliders.
2. Enter your state's Professional Tax and, optionally, the minimum wage for your job.
3. Choose whether the PF ceiling, bonus and gratuity apply, and how your employer counts PF in CTC.
4. Read the old and new columns and the change; open How wages are worked out for the 50% test step by step.

What Counts as Wages Under the New Code

Included: Basic pay, Dearness Allowance and retaining allowance.

Excluded (but counted back if together they exceed 50% of pay): House Rent Allowance, conveyance, statutory bonus, employer contribution to PF or pension, gratuity, overtime, commission and similar amounts. Pay in kind is counted as wages up to 15% of the total.

Whether a medical or "special" allowance is a wage depends on how it is paid and is debated, so the calculator lets you choose.

Why Take-home Pay Falls

When CTC stays the same, a larger wage base means higher employer PF, ESI and gratuity inside the CTC, so less is left for gross pay; and your own PF and ESI rise as well. Both effects reduce take-home. The extra PF is still your money, saved in your PF account, and gratuity is paid when you leave.

What Employers Should Check

• Whether Basic + DA is at least half of total remuneration for each grade.
• Employees whose wages cross ₹21,000: ESI and bonus eligibility change.
• The higher PF ceiling of ₹25,000 for those on capped PF.
• Gratuity provisions, which rise with the wage base.