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New Delhi: Four new Labour Codes have been implemented in the country from 21 November 2025, in which 29 old labour laws have been combined and a new law has been created. Now the definition of salary has changed and companies must ensure that you get at least 50 percent of your CTC as salary. Your PF will also be deducted on the same salary. After the implementation of the new labour codes, the biggest question regarding EPF and salary is what will be the impact on your take-home salary and whether the PF will be deducted on bonuses and variable pay.
At present, in most companies, EPF is deducted by adding basic salary and Dearness Allowance (DA). Employees deposit 12 percent of this amount and 12 percent to the employer i.e. company PF.
If your basic salary is less than 50 percent of CTC, then after the implementation of the new rules, your company can add different allowances and some bonuses to the salary to increase the basic salary to 50 percent. This means that the salary considered for the PF may increase. After this, the amount of PF deduction may also increase, after which your in-hand salary will be reduced.
According to experts, this will depend entirely on how your company has prepared your CTC. If your variable pay or some kind of bonus is shown as part of CTC, then PF can be deducted on that too. However, the final guidelines are yet to come, so the whole picture is not clear.
For now, the rules clearly state that companies must ensure that at least half of your total CTC is in the form of salary. PF is also deducted on this. If your company already keeps the basic salary high, then you will not see a big change, but employees whose salary includes allowances and variable pay share may be affected.
For those employees who are depositing only Rs 1,800 per month EPF (i.e. 12 percent on the basis of 15,000), there is no change at the moment. Employees who get more salary can also limit their PF contribution to the base of Rs 15,000 as per the rules, if they wish. So how much impact will be on their take-home salary will depend entirely on how much amount they want to deduct in the PF themselves.
