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IT Firms Brace for HUGE Wage Bill Hike: New Labour Laws Trigger Shockwaves!

Tech

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Published on 24th November 2025, 8:53 AM

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Author

Simar Singh | Whalesbook News Team

Overview

India's IT and IT-enabled services firms are set to face a significant increase in their payroll costs, potentially by 5-10%, due to the implementation of new Labour Codes. Key changes include a mandate that basic salary must constitute at least 50% of total compensation, increasing statutory contributions. Mandatory annual health checks for employees over 40 and higher compliance costs will further add to the burden.