India Inc figures out new salary structures to meet labour codes

The new definition under the Code of Wages, 2019, includes three components: Basic pay, dearness allowance and retention payment.

Corporate India is taking a fresh look at compensation structures following a change in the definition of “wages” under the new labour codes that come into effect on April 1.

Faced with potentially higher compensation pay-outs and implementation challenges, several companies are evaluating different permutations and combinations of salary structures to mitigate the impact on their financials and on their employees. This exercise also includes streamlining the organisation structure, mapping out roles that may be delivered from home, and those that may follow a hybrid model of delivery, say human resources (HR) experts.

Simultaneously, businesses have, through industry associations, reached out to