The new labour codes in India, effective from November 21, 2025, will significantly reshape salary structures by requiring that wages constitute at least 50% of total remuneration. This reform aims to reduce reliance on allowances like housing rent and bonuses, ensuring a larger share of compensation comes from basic pay, dearness allowance, and retaining allowance. Balasubramanian A, Senior Vice President at TeamLease Services, noted that employees with a basic pay below 50% of their cost to company (CTC) will likely see increases in their basic pay, enhancing their provident fund (PF) and gratuity contributions but potentially lowering immediate take-home pay. Early-career professionals are expected to benefit the most, as their compensation structures are less optimized for tax efficiency, leading to stronger long-term savings despite a marginal dip in take-home pay. Mid-level professionals will also see more structured pay, while senior employees may experience a reduction in immediate cash flow but could gain from higher gratuity payouts at the time of exit. The reform allows for greater flexibility, particularly for high earners who can choose to opt for higher retirement savings or maintain higher take-home income.