India's new labor codes are set to redefine 'wages,' impacting provident fund (PF) and gratuity calculations. A key change mandates that allowances and benefits, excluding gratuity and retrenchment compensation, cannot exceed 50 percent of total remuneration. Any excess will be added back to wages for statutory calculations. This shift aims to increase PF and gratuity benefits, potentially leading to lower take-home pay for employees as employers can no longer structure salaries with low basic pay and high allowances to reduce liabilities.