New Delhi. The Central Government has given great relief to the employed people. Due to the new labor codes coming into effect from November 21, 2025, there was increased concern among the employees that the salary coming into their accounts may decrease. The reason for this concern was the rule that now the basic salary and its related components should be at least half of the total salary. The fear of the employees was that due to increase in basic salary, the deduction of Provident Fund (PF) will also increase and the salary in hand will reduce.
Ministry clarified
The Union Ministry of Labor and Employment has termed this fear as wrong. According to officials, the new codes will not automatically reduce the salary of an employee. The main reason for this is the method of PF calculation.
No effect on PF calculation
Even under the new salary structure, PF contribution will remain within the statutory limit of Rs 15,000. Unless the employee and employer voluntarily choose to contribute PF on an amount exceeding this limit, the deduction will remain the same. The ministry stressed that the new rules do not compel any employee to deduct PF on the entire salary.
Employees got relief
This clarification from the government has brought great relief to the employees. The purpose of the new labor codes is only to bring clarity and uniformity in the wage structure, and not to reduce salaries. Experts say that employees can avail their salary and PF contribution options without any fear.
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