New labour codes 2025 explained: The new labour codes, effective November 21, 2025, have wide reaching implications for both employees and employers. Your salary, both take home and the Cost To Company (CTC), gratuity, provident fund will most likely see changes with the new rules. Earlier, varying definitions of ‘wages’ and ‘salary’ led to inconsistencies in calculating benefits, resulting in multiple interpretations and even frequent litigation. Under the new framework, all benefits will be calculated based on this new definition of wages. According to Puneet Gupta, Partner, EY India, the implementation of the four Labour Codes marks a significant transformation in India’s labour law framework, introducing uniformity and simplification in compliance through a common definition of ‘wag

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