New Delhi: The government has officially issued the rules for the four new labor codes in the gazette, bringing them fully into effect. These labor codes were already enacted on November 21, 2025, but due to a lack of clear rules, they were unable to be properly implemented on the ground.
Now that the rules have been issued, implementation has begun, and both employees and companies will be able to follow them. However, one question that may be lingering in employees’ minds is whether, once these rules are implemented nationwide, will they impact their May salaries? Let us answer that question.
Will there be an impact on May salaries?
May salaries may not see any immediate changes. This is because changing salary patterns takes time for companies. They need to make changes to their HR functions, salary calculation processes, and computer systems. Furthermore, each state has to implement its own rules. All these processes take time, so there won’t necessarily be any deductions or increments in the May salary.
What changes will occur when the company implements them?
According to the new rules, your basic salary plus DA will need to be at least 50% of your total CTC. This means that if your salary previously included high allowances, they may be reduced, and your basic salary may increase.
The increase in basic salary will also increase your PF, ESI, and gratuity, which will strengthen your future after retirement. However, your initial salary may seem a little less.
Working rules have also been clarified. A maximum of 48 hours of work per week will be required, and overtime will be paid.
Every employee will receive an appointment letter, those over 40 will receive a free health check-up once a year, and women will be allowed to work in all shifts, subject to safety standards.
Which employees may see the impact sooner?
Companies with lower basic salaries and higher allowances may see the impact sooner. Additionally, newly joining employees or those whose contracts have just been renewed may be the first to see the impact of the new salary structure.