Bhubaneswar, Nov. 25 -- India's revised national wage framework will not alter how much employers spend on staff, but it will change how employees receive their pay. With the new rules making it mandatory for basic pay to form at least half of total wages, a greater portion of salaries will now go into statutory deductions such as Provident Fund (PF).

As a result, the monthly in-hand salary will decrease for many private sector employees despite the CTC remaining unchanged.

For years, companies reduced salary deductions by keeping basic pay low and increasing allowances. This resulted in lower PF contributions and higher take-home pay for employees. The revised wage framework closes that option.

Under the new rule, basic salary, dearne...