New Labour Codes Expand Wage Definition, Increasing Company Liabilities
4 hours agoBusiness
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New Labour Codes Expand Wage Definition, Increasing Company Liabilities

Companies must account for increased financial liabilities in the December quarter due to the revised definition of wages under new labor codes. This expanded definition, including basic pay and dearness allowance, impacts calculations for gratuity, leave encashment, and statutory bonuses, potentially increasing organizational costs. Managements are advised to estimate these financial implications, including potential increases in gratuity liability, when preparing financial results.

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