New Labour Code Salary Kit: 50% Wage Rule, PF & Gratuity (Excel)

Since the labour codes came into force in November 2025, many salary structures with a low basic and high allowances need a second look. If allowances are more than half of total pay, the extra counts as wages – and PF and gratuity are worked out on wages.

This kit shows exactly what that means for each employee, in rupees.

What it does

• Salary Check: type one salary – see whether it meets the 50% rule, how much is added back to wages, and PF, ESI, gratuity, in-hand pay and cost before vs under the Code
• Suggested structure: same total pay, basic + DA at 50% or more, allowances reduced in the same ratio
• Team Check: up to 100 employees; who is below the rule and the total monthly cost change
• Salary Slip: pick an employee and month, print or save as PDF
• Settings: PF %, PF wage ceiling (on/off), ESI, professional tax and gratuity values you can edit

Also included

• Guide (PDF): the 50% rule with a worked example, what changes, a step-by-step plan and employee FAQs
• Revision letter (Word): two versions – when the structure changes and when nothing changes

General information, not legal advice. Labour codes apply through central and state rules – confirm with your accountant.