New Labour Code Impact on 25 LPA Salary
Pre-filled for 25 LPA CTC. Adjust sliders to match your exact salary structure.
⚠ Your basic (40%) is below the 50% minimum under new Labour Code. Employer must raise basic to 1,04,167 /mo.
Metro = Delhi / Mumbai / Chennai / Kolkata
Take-Home Change
-₹4,350/mo
Lower take-home — money goes to PF
Annual Impact
PF saved extra
₹60.0K/yr
Extra gratuity
₹12.0K/yr
New Labour Code Impact at 25 LPA — 2025
Under the New Labour Code, basic salary must be at least 50% of CTC. At 25 LPA, this means a minimum basic of ₹1,04,167/month. If your current basic is below this threshold, your employer must restructure your salary components — typically by reducing allowances like HRA, conveyance, or special allowance to accommodate the higher basic.
How This Changes Your PF
Higher basic means higher EPF contribution. At 50% basic on 25 LPA, your employee PF contribution rises to ₹12,500/month vs the current ₹10,000/month (typical 40% basic structure) — a difference of ₹2,500/month in take-home. Annually, that is ₹30,000 less in hand but more in your EPF corpus, which earns 8.25% tax-free interest.
Gratuity Impact
Gratuity is calculated on basic + DA. With higher basic under the new code, your gratuity entitlement after 5 years increases proportionally. At ₹1,04,167/month basic, the gratuity after 5 years is approximately ₹3,00,482 (formula: 15 days × years / 26). The new code also extends gratuity eligibility to fixed-term contract employees after just 1 year of service.
Tax Context at 25 LPA
Model both regimes carefully. Old regime wins if total deductions (HRA + 80C + NPS + 80D + LTA) exceed ₹5.75 lakh. With higher PF deductions reducing take-home, optimising your tax regime becomes more important — every rupee saved in tax offsets the reduced in-hand from the higher PF contribution.