PF Growth Tool

PF Calculator New Labour Code 2026

Your PF contributions are about to get a major boost. Use this calculator to see exactly how much more goes into your retirement fund every month under the new wage rules.

Instant salary impact calculator

CTC daaliye, current basic structure select kijiye, aur dekhiye new wage definition ke baad monthly in-hand kitna change ho sakta hai.

Current Basic Salary % of CTC40%
Employee PF contribution preference

Current Monthly CTC

₹83,333

State wage floor used

₹20,358/month

Annual CTC band

10L

New wage base

₹41,667/month

New Monthly Take-Home

₹73,133

Calculated for Delhi with a IT/ITES salary structure.

⚠️ Your take-home salary will DECREASE by ₹2,000/month

📈 Your PF contribution will INCREASE by ₹1,000/month

This happens because basic salary is increased to 50% of CTC under the new labour code.

Annual Impact Overview:

Over a year, take-home changes by ₹24,000. Your PF corpus grows by ₹12,000 a year more, and your gratuity accrual increases by ₹400.65 each month.

ComponentOld StructureNew Structure
Basic₹33,333₹41,667
HRA₹16,667₹20,833
PF (employee)₹4,000₹5,000
PF (employer)₹4,000₹5,000
Gratuity accrual₹1,603₹2,003
Professional Tax₹200₹200
Net Take-Home₹75,133₹73,133
Confidence note: Estimate based on standard assumptions (12% PF, 50% basic rule, flat ₹200 PT). Actual numbers may differ based on employer policy and state-specific slabs.
This is an estimate based on new labour code rules.
Last updated: 30 March 2026

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How PF Changes Under the New Labour Code

The formula stays the same: PF = 12% of Basic Salary. What changes is the size of the basic salary itself.

ScenarioOld PF/monthNew PF/month
₹10L CTC, 30% basic₹3,000₹5,000
₹15L CTC, 35% basic₹5,250₹7,500
₹20L CTC, 25% basic₹5,000₹10,000

Employee PF only. Employer matches the same amount.

The silver lining: PF earns ~8.25% annual interest (tax-free up to limits). A ₹2,000 monthly PF increase compounds to ₹3.6L extra over 10 years.

PF Impact Across CTC Bands

See how different CTC bands are affected by the new wage rules.

CTCOld Take-HomeNew Take-HomeChangePF Growth
₹5 LPADelhi · Basic 30%₹38,467₹36,467 ₹2,000+₹12,000/yr
₹8 LPAMaharashtra · Basic 35%₹60,867₹58,467 ₹2,400+₹14,400/yr
₹10 LPAKarnataka · Basic 40%₹75,133₹73,133 ₹2,000+₹12,000/yr
₹15 LPATamil Nadu · Basic 35%₹1,14,300₹1,09,800 ₹4,500+₹27,000/yr
₹20 LPAHaryana · Basic 30%₹1,54,467₹1,46,467 ₹8,000+₹48,000/yr

All examples use 12% mandatory PF, IT/ITES industry, and the respective state minimum wage floor.

Step 1: Establish Current Structure

We take your Annual CTC and multiply by your current Basic % to get your existing Basic Salary.

Step 2: Apply 50% Wage Rule

Under the new code, Basic Salary must be at least 50% of CTC. We also check if the state minimum wage is higher and use whichever is greater.

New Basic = max(CTC × 50%, State Minimum Wage × 12)

Step 3: Recalculate Deductions

PF: Basic × 12% (employee + employer match)

Gratuity: (Basic ÷ 26) × 15 days per year

Professional Tax: ₹200/month (standard estimate)

Step 4: Compute Take-Home

Take-Home = CTC − Employee PF − Employer PF − Professional Tax
Assumptions: HRA is set at 50% of Basic. Professional Tax is a flat ₹200/month estimate. Actual numbers may vary by employer policy, state PT slab, and specific allowance contracts.
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Frequently Asked Questions

PF is 12% of your basic salary (wages). Since basic must now be ≥50% of CTC, the PF base is larger. Both employee (12%) and employer (12%) contribute, so the total into your PF account is 24% of the new basic.
The statutory PF ceiling of ₹15,000/month basic still applies for mandatory coverage. However, many employers contribute on the full basic. Check your appointment letter.
PF follows existing EPFO withdrawal rules — partial withdrawal for specific needs (housing, medical, education) and full withdrawal on retirement or 2 months of unemployment.