Indian Labour Codes 2026 CTC & Salary Compliance Calculator

State-wise Minimum Wages · Section 2(y) Live Check · Floor Wage Provision · All Labour Codes · Pan-India Ready

Code on Wages 2019 Code on Social Security 2020 OSH Code 2020 IR Code 2020 Floor Wage — Sec 9 28 States · 8 UTs
Central Floor Wage — Section 9, Code on Wages 2019
Current Central Govt. min wage: ₹783/day (Unskilled) · ₹954/day (Skilled) · ₹1,035/day (Highly Skilled) · Monthly: ₹20,358 / ₹24,804 / ₹26,910  |  No state can go below this floor. Section 9 of Code on Wages 2019 empowers Central Govt. to fix a national floor wage — once formally notified, all states must comply immediately.
⚙️CTC Calculator
Compliance Check
Deductions
⚖️Employer Cost
🗺️State Min Wages
🏛️Floor Wage
🤝Why This Firm
Employee Details
Employee Name
Optional
State / UT
Auto-loads notified min wage
Wage Category
Determines min wage
Employee Type
Notified Min. Wage (Auto)
State + category lookup
₹13,403
Central Floor Wage (Sec 9)
No state can go below this
₹24,804/mo
Offered CTC — Annual
Annual CTC (₹)
Enter total employer cost
Monthly Gross
CTC ÷ 12 (auto)
₹50,000
Salary Structure  Blue Col = Auto Yellow Col = Your Input
ComponentAuto ₹/moYour InputStatus
Wages — Sec 2(y) Code on Wages 2019 · Basic+DA+OT · Must be ≥ 50% of Gross
1. Basic Salary
Core wage · auto = 50% of gross
₹25,000
50.0%
2. Dearness Allowance (DA)
Part of wages · optional
₹0
Optional
3. Overtime Allowance
Wages · included in Sec 2(y) test
₹0
If appl.
Excluded Allowances — must not collectively exceed 50% of Gross
4. HRA
Auto: 20% of gross
₹10,000
20.0%
5. Conveyance Allowance
Actual amount paid — enter if applicable
₹0
Optional
6. Medical Allowance
Actual amount paid — enter if applicable
₹0
Optional
7. Special Allowance
Auto: balance
₹12,150
Balance
8. Other Allowances
Education / Food / Other
₹0
Optional
Gross Salary — Monthly
₹50,000
Wages % of Gross
50.0%
Required ≥ 50%
Excluded % of Gross
50.0%
Ceiling: 50%
Adjusted Wages
₹25,000
EPF / Gratuity base
Min Wage Surplus
₹25,196
Above notified floor
Floor Wage Check
OK
Sec 9 — Code on Wages
Section 2(y) — Code on Wages 2019 — 50% Wage Floor
Effective Gross
₹50,000
Wages (Basic+DA+OT)
₹25,000
Excluded Allowances
₹25,000
50% Cap
₹25,000
Excess → added to wages
₹0
Adjusted Wages (Post-Code)
₹25,000
COMPLIANT — Wages 50.0% of Gross (≥ 50%) · Section 2(y) Code on Wages 2019
Min. Wage + Floor Wage Compliance — Punjab
State Notified Min. Wage
₹13,403
Central Floor Wage (Sec 9)
₹24,804/mo
Effective Minimum (Higher of state/floor)
₹24,804
Actual Gross Paid
₹50,000
Surplus / (Deficit)
₹25,196
COMPLIANT — Gross ≥ effective minimum ₹24,804 (higher of state/floor wage)
Floor Wage Rule (Sec 9): Once Central Govt. notifies floor wage, whichever is higher — state min wage or floor wage — becomes the effective compliance threshold. This calculator always applies the higher of the two, future-proofing your payroll.
Net In-Hand — Monthly
₹49,795
Annual: ₹5,97,540
99.6%
of Gross
Total Deductions
₹205
0.4% of gross
PF Wages (Basic+DA)
₹25,000
EPF/EPS base
Employee Statutory Deductions
Employee PF — 12% of Basic+DA (max ₹1,800/mo)
Employee opted out — permissible since Basic+DA > ₹15,000. Employer may also not contribute.
₹0
₹0/yr
ESI — 0.75% of Basic+DA (if Basic+DA ≤₹21,000)
ESI Act 1948 Sec 2(22) — ESI wages = Basic+DA (wages component). NIL if Basic+DA >₹21,000.
₹0
₹0/yr
LWF — Employee (State specific)
Labour Welfare Fund — employee share (Punjab ₹5)
₹5
₹60/yr
Professional Tax
PT rate: ₹200/mo if Annual Gross >₹4,00,000 (Punjab)
₹200
₹2,400/yr
TDS (Monthly Avg) ← Enter
Income Tax — enter estimated monthly average
₹0/yr
Other Deductions ← Enter
Loan / recovery (written auth. required — CoW Sec 18)
₹0/yr
Important: These are the employer's statutory obligations — separate from employee's CTC/gross. They represent additional cost over and above offered salary. NOT deducted from employee's wages.
Employer Statutory Obligations — Monthly
Obligation Legal Basis Monthly Annual
ER EPF — 12% of PF wages (upto ₹15,000) CoSS 2020 Sec 2(22) ₹1,800 ₹21,600
↳ EPS — 8.33% (within above, max ₹1,250) CoSS 2020 ₹1,250 ₹15,000
↳ ER PF — 3.67% (EPF minus EPS) CoSS 2020 ₹550 ₹6,600
EPF Admin Charges 0.50% EPF & MP Act ₹75 ₹900
EDLI 0.50% (max ₹75/mo) EDLI Scheme ₹75 ₹900
ER ESI 3.25% of Basic+DA (if ≤₹21,000) ESI Act 1948 ₹0 ₹0
Gratuity Provision 4.81% of Adj. Wages Gratuity Act/CoSS 2020 ₹1,203 ₹14,436
LWF Employer (State-specific) State LWF Act ₹20 ₹240
Bonus Provision 8.33% Bonus Act 1965 Sec 10/12 ₹583 ₹6,996
Total Monthly Employer Cost (Employer PF + Employer Admin + Employer EDLI + Employer ESI+ Gratuity + Employer LWF) ₹3,173 ₹38,076
Statutory Bonus — Payment of Bonus Act 1965
Bonus Computation Mode
(8.33% min — 20% max)
Old method: 8.33% of Basic+DA. If wages >₹21,000, compute on notional ₹7,000 (Sec 12). Employee must draw wages ≤₹21,000 to be eligible. Payable before Diwali/Puja.
₹7,000 (notional — Bonus Act Sec 12)
Min. Bonus Provision (8.33%)
₹583/mo provision
Applies to establishments ≥ 20 employees. Employee eligibility: wages up to ₹21,000/mo. Actual bonus 8.33%–20% based on allocable surplus. Minimum 8.33% shown here.
State-wise Minimum Wages — India 2026 (Latest Notifications) Showing built-in reference rates
State / UT Unskilled Semi-Skilled Skilled Highly Skilled Effective Date
Note: Rates shown are for the primary/highest zone where multiple zones exist. State governments revise min wages typically twice a year (April & October). Always verify latest notification from the respective state Labour Department. Floor Wage (Sec 9, Code on Wages 2019) = ₹783/day (Unskilled) — no state can go below this.
Central Government Floor Wage — Section 9
Code on Wages 2019 — National minimum below which no state can fix wages. Revised periodically by Central Govt. based on CPI. Once formally notified under Sec 9, supersedes all lower state rates. Effective since implementation of Code on Wages (21.11.2025).
Unskilled
₹20,358
₹783/day
Semi-Skilled
₹22,568
₹868/day
Skilled
₹24,804
₹954/day
Highly Skilled
₹26,910
₹1,035/day
How Floor Wage Works — Legal Framework
Aspect Provision
Governing Section Section 9, Code on Wages 2019
Who fixes it Central Government, after consulting Central Advisory Board
Effect on States No state can fix minimum wage BELOW the central floor wage
If state wage is lower State must immediately revise upward to match or exceed floor wage
Revision frequency As determined by Central Govt. — typically linked to CPI (every 6 months to 2 years)
Current floor (Oct 2024) ₹783/day unskilled · ₹868/day semi-skilled · ₹954/day skilled · ₹1,035/day highly skilled
Monthly equivalent ₹20,358 · ₹22,568 · ₹24,804 · ₹26,910 (26-day computation)
Variable Dearness Allowance CPI-linked VDA revised by Central Govt. every April and October for inflation adjustment
Penalty for non-compliance Fine up to ₹50,000 (first offence); ₹1,00,000 + 3 months imprisonment (repeat) — Code on Wages Sec 51
This calculator Always applies max(state min wage, central floor wage) — future-proof compliance built in
States below floor wage: As of 2025, states like Nagaland (₹5,280/mo), Arunachal Pradesh (₹6,600/mo), Rajasthan (₹7,410/mo), and J&K (₹8,086/mo) have state-notified wages significantly below the Central floor wage of ₹20,358/mo. Once the Central Govt. formally notifies the floor under Sec 9, these states must immediately comply. This calculator already accounts for this — it uses the higher of state or floor wage automatically.
⚖️
Deep Labour Law Expertise
Laboris Kanoon Mitra Solutions™ brings extensive courtroom and advisory experience across labour courts and tribunals in Punjab & Haryana, with offices in Gurugram and Ludhiana.
🏭
Every Sector Covered
Factories, schools, hospitals, hotels, restaurants, IT firms, security agencies, construction, transport — we know your sector's specific compliance obligations.
📋
All 4 Labour Codes
We track every amendment, every FAQ, every circular — so your HR team doesn't have to. Proactive advisory is our standard.
🗺️
Pan-India Advisory
Multi-state employers trust us for harmonised compliance frameworks that work across state-specific minimum wages, PT slabs, and LWF rules.
🛡️
Inspection Ready
We audit your registers, returns, forms, and notices BEFORE the inspector arrives — so there are zero surprises.
📱
Free Tools Like This
We build tools like this calculator for the HR community — free, accurate, and always updated — because we believe in helping employers do it right.
Same-Day Response
Show-cause notice? Inspection visit? Demand notice? We respond same day and appear next day. That's our commitment.
💼
Retainership Plans
Affordable monthly retainerships covering all compliance, drafting, correspondence, and representation — one firm for all your labour law needs.

Ready to make compliance your competitive advantage?

Talk to our team about a customised retainership for your organisation. Schools, factories, hospitals, hotels — we have specialised plans for every sector.

Frequently Asked Questions

What should Basic Pay be in a CTC structure under the new Labour Codes?
Basic + DA must be at least 50% of total CTC under the Code on Wages, effective 21 Nov 2025. Structures with Basic below 50% must add back the shortfall for PF, gratuity and other statutory calculations.

What is included in CTC?
CTC = Basic + DA + HRA + other allowances + employer PF contribution + employer ESI contribution + gratuity provisioning + any other employer cost, before any deductions.

Does a higher Basic mean higher take-home pay?
Not necessarily — a higher Basic raises PF deduction (12% of Basic, up to the ₹15,000 ceiling) and gratuity provisioning, which can reduce net take-home even as CTC stays the same.