Legal & Compliance
Wage Restructuring Calculator
Free Calculator
India's four Labour Codes, in force since 21 November 2025, introduced a unified definition of "wages" under Section 2(y) of the Code on Wages, 2019. If excluded components (HRA, conveyance, special allowance, bonus, commission) exceed 50% of total remuneration, the excess is added back to wages. This single change cascades through every statutory obligation: provident fund contributions, ESI deductions, gratuity provisioning, and bonus calculations are all recalculated on the revised wages base. The Wage Restructuring Calculator lets you input your current salary structure and instantly see whether it meets the 50% threshold, how much restructuring is needed, and what it costs under two strategies: gross neutral (employer absorbs the increase) and CTC neutral (total cost held constant, gross pay adjusts). All calculations incorporate the Ministry of Labour and Employment's official FAQ clarifications dated 16 March 2026, including which components are included in "total remuneration" for the 50% test and which are excluded.
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Key Features
Fully 50% Compliance Test
MoLE FAQ Integrated
Two Restructuring Strategies
Before and After Split View
Annual Cost Summary
Employee Take Home Impact
Disclaimer: This simulator is provided for informational and educational purposes only. It does not constitute legal, financial, or tax advice. The calculations are simplified approximations and may not reflect the exact terms. Always consult qualified professionals before making decisions relating to equity, fundraising, or corporate structuring.