The new Labour Codes in India, which came into effect this month, are designed to improve employee welfare by strengthening statutory benefits and enhancing social security coverage. Experts indicate that while the restructuring of salary components may lead to a decrease in immediate in-hand pay due to increased contributions to retirement savings, the long-term benefits include higher gratuity payouts and improved financial security. Puneet Gupta (Partner, People Advisory Services - Tax at EY India) emphasizes that the new codes aim to standardize statutory benefits, while Jay Parmar (Co-founder, Aurtus) notes that these changes will enhance transparency and ultimately benefit employees financially. Importantly, the new laws do not introduce new income tax deductions; existing provisions under the Income Tax Act, 1961, remain unchanged. Therefore, employees must engage in strategic tax planning to optimize their financial outcomes amid these changes. Overall, the Labour Codes are seen as a positive step towards securing employees' future savings without reducing actual earnings.