How will PF change under the new labour code?

Under the new labour laws in India, PF coverage now applies universally to all establishments with 20 or more employees, regardless of industry. Contribution rates remain at 12% each from employee and employer, but the base used for calculation is likely to increase due to the revised definition of wages under the new Labour Code 2025. This means employees may see a slight reduction in take-home pay, offset by higher long-term retirement savings. Omni's payroll module can be configured to reflect updated wage and statutory contributions, ensuring PF calculations stay accurate from the first affected pay cycle.