29 Nov 2025


This is a link-enhanced version of an article that first appeared in The Economic Times
Article Overview:
India Inc’s wage bill may rise 5–12% (and up to 15% for allowance-heavy or contract-driven firms) as companies realign HR and pay structures to comply with the new labour codes.
Our Partner, Atul Gupta, Labour & Employment shared his perspective. Here’s what he had to say:
“As remuneration in kind (if any) up to 15% will be treated as wages, all employers will now need to re-examine what components of their current compensation structures will be treated as a ‘wages’, and which ones will be excluded from the definition. Among the various benefits employees normally get, the impact on gratuity is likely to be the most prominent.”
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