India, Nov. 24 -- India's new labour codes-which restructures 29 existing labour laws into four labour codes-has wide-ranging ramifications of what you earn today and save for the future.

The four new labour codes are:

The most significant component impacting employees' salaries is the Code on Wages, 2019, which introduces a uniform and expanded definition of "wages".

The new definition of "wages" mandates a critical structural change to the cost-to-company (CTC) framework. The core rule is:

Prior to the new codes, many employers kept the basic pay low (often less than 50% of the CTC) and inflated various allowances. This was done to minimise mandatory statutory contributions, as provident fund (PF) and gratuity are primarily calculat...