Introduction
Implementing the Code on Wages, 2019 (“Wages
Codes”) represents the most significant overhaul of
payroll structures in India. By consolidating four major laws, the
Wages Code introduces a uniform definition of wages that will
impact how companies structure their payroll. For organizations,
particularly those in the service and information technology
sectors, where allowance often makes up a bulk of the CTC, the
Wages Code introduces a fundamental commercial shift and failing to
align could lead to unanticipated costs, liabilities and
significant penalties.
In this article, we aim to provide a step-by-step roadmap for
organizations to implement the changes brought by the Wages
Code:
