Align your salary structures with the Labour Codes' definition of wages, with the impact on PF, gratuity, bonus and take-home pay modelled before you decide.
Under the Code on Wages, "wages" includes basic pay, dearness allowance and retaining allowance. If specified exclusions, such as HRA, conveyance and other allowances, exceed 50% of total remuneration, the excess is added back to wages. This higher wage base is used for gratuity and other statutory calculations, which is why many employers are restructuring salaries.
Under the Code on Wages, basic pay, dearness allowance and retaining allowance must together make up at least 50% of total remuneration; excluded allowances above that limit are added back to "wages". This changes the base for PF, gratuity, bonus and other statutory payments, and, for many employers, their cost.
We test every salary structure you use against the new definition, model the cost and take-home impact of alternatives, and help you roll out compliant structures that balance cost, compliance and employee experience.
Everything we take ownership of under Salary Restructuring.
Every pay structure tested against the new definition of wages.
PF, gratuity, bonus and leave encashment impact quantified.
Alternative structures that keep total cost to company steady where possible.
Effect on employees' take-home pay across salary bands.
Revised salary annexures and letters for employees.
Support to update payroll configuration and statutory calculations.
Gratuity and statutory costs can rise sharply without planning.
Poorly designed changes reduce take-home pay and hurt morale.
Structures that ignore the 50% rule lead to short payment of dues and claims.
We study your entities, locations, headcount and existing records to map every obligation that applies.
A location-wise compliance calendar and responsibility matrix, agreed with your team.
Registrations, registers, returns and filings handled on time, every time, reviewed by a professional.
Regular status reports and an evidence file ready for auditors, inspectors and management.
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Fees depend on your entities, locations and headcount. Share your requirement for a tailored proposal.
Request pricingUnder the Code on Wages, if excluded allowances exceed 50% of total remuneration, the excess is treated as part of wages for statutory calculations.
It can, mainly through gratuity and PF. We model the impact and present options so you can decide with the numbers in front of you.
It depends on the structure chosen. We show the take-home impact band by band so you can manage it.
It can, where PF is computed on the Code's definition of wages. The effect also depends on the new EPF ceiling of ₹25,000 and whether you contribute on actual wages.
Often yes, by rebalancing components within the same CTC, but take-home pay may change. We show both.
A typical engagement, analysis, options, approval and documentation, takes a few weeks, depending on the number of structures.
Tell us about your organisation and a Paalan professional will send you a clear, tailored proposal, usually within one working day.