
India's salaried individuals are facing a personal finance reset as new labor laws, set for implementation in 2026, are poised to alter compensation structures. The upcoming labor codes mandate that basic pay constitute at least 50% of total compensation, which could reduce monthly take-home salaries for many. This shift, aimed at improving long-term benefits like provident fund and social security, may also impact India's consumption patterns as individuals adjust their spending or savings behavior. Experts suggest this change will necessitate a reevaluation of financial planning for salaried employees.
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