
A practical, HR-first guide to understanding, auditing, and fixing wage structures under India’s Code on Wages - built for Indian SMEs.
Under the Code on Wages, at least 50% of total remuneration must qualify as ‘wages’.
But what counts as wages is not the same as what your payslip calls basic pay.

Understand how the 50% Wage Rule applies in practice
Identify which components qualify as wages, and which don’t
Audit your current salary structures with a clear framework
Fix non-compliant structures without disrupting employees
Handle edge cases like bonuses, commissions, and consultants
Prepare for audits, employee disputes, and due diligence reviews