Rohitaashv Sinha Shares Insights on New Labour Codes in News18 India Feature
Rohitaashv Sinha was recently featured in a News18 India article discussing the implications of the New Labour Codes. The piece focuses on the proposed 50% basic pay rule and its potential impact on employees’ in-hand salary.
Clarifying the 50% Basic Pay Rule
Offering clarity on a widely discussed reform, Rohitaashv highlighted that the intent behind the provision is not to increase the tax burden on employees. Rather, the goal is to bring greater uniformity and strengthen long-term social security benefits.
As he noted:
“The objective of this provision is to standardise wage structures and ensure better social security contributions such as provident fund and gratuity, rather than to alter the tax burden on employees. Therefore, any potential impact on take-home salary would primarily arise from employer-led restructuring of salary components to align with the labour codes.”
Policy Objective: Transparency and Employee Benefits
His insights highlight the broader policy objective of enhancing transparency in compensation structures while safeguarding key employee benefits, including:
- Provident fund contributions
- Gratuity entitlements
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