Overview
- The labour ministry reiterated that PF deductions continue to apply at the ₹15,000 monthly wage ceiling, so net pay does not fall by default.
- Contributions on wages above ₹15,000 remain voluntary and require a joint employer–employee declaration under Para 26(6) of the PF Scheme.
- The codes introduce a uniform wage definition with excluded allowances capped at 50% of total remuneration, with any excess added back for statutory calculations.
- Employers may face higher liabilities for benefits such as gratuity, leave encashment and accident compensation, and fixed-term workers become eligible for gratuity after one year.
- ESI eligibility will be tied to the new wage definition and coverage extends nationwide, which could increase the number of covered employees even as per-employee contribution bases shift.