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Just signed the outside employment form in KPMG onboarding system. I actually wanted to start dabbling in creative writing as a potentially monetizable hobby, but I'm guessing this may pose issues.
Definitely interested in the "exception from this policy may be requested if provision of non-professional services doesn't interfere with one's duties of causes conflict of interest" clause, though. Has anyone been able to get one of those before?
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Citicorp services india pvt ltd Hi Fishes,
I have an offer from Citi for 37 LPA, YOE 8.10 approx, got another offer from a SBC for 39 LPA.
Can Citi match my offer ? I would like to join Citi but I would want to understand if they can give a counter. Citicorp services india pvt ltd Citicorp
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I asked AI this question and below is respone
Quick Answer: The 50% basic pay rule under India’s new labour codes has not yet been implemented. Although the Code on Wages (2019) included this provision, the government only notified the labour codes in November 2025, meaning companies are still legally allowed to structure basic pay at 30–35% of CTC until enforcement begins. SEZs do not have exemptions from this rule; the delay is due to staggered implementation, not location. Corporations will need to revise salary structures once the codes are enforced, but they were not required to do so in 2022 because the law was not yet in effect.
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🔎 Why your offer letter shows 33% basic pay
- Current practice: Most Indian companies set basic pay at ~30–35% of CTC to minimize PF and gratuity liabilities.
- Legal status: The Code on Wages, 2019 mandated that “wages” (including basic + allowances) must be at least 50% of CTC. However, this was only a provision until the government notified the new labour codes.
- Notification date: The four labour codes (Wages, Industrial Relations, Social Security, Occupational Safety) were officially notified on 21 November 2025.
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🏢 SEZs and exemptions
- No SEZ exemption: The 50% rule applies universally across India. SEZs do not have special exemptions from wage structuring under the labour codes.
- Reason for delay: The government postponed implementation multiple times due to industry concerns about increased costs and reduced take-home pay.
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📅 Why didn’t it happen in 2022?
- Mandate vs. enforcement: The rule was announced in 2019 and discussed widely in 2020–2022, but it was never enforced.
- Industry lobbying: Corporates and industry bodies requested more time, citing higher PF/gratuity outflows and employee resistance to lower take-home salaries.
- Government decision: The Centre delayed rollout until late 2025 to align all four labour codes together.
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📌 What happens next
- Corporations must comply: Now that the codes are notified, companies will have to restructure pay so that basic = ≥50% of CTC.
- Impact on employees:
- Take-home pay may reduce (due to higher PF and gratuity contributions).
- Retirement benefits (PF, gratuity) will increase.
- Offer letters: Firms like Citi and your current employer will eventually revise contracts and payroll structures, but until enforcement, they can continue with 33%.
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✅ Bottom line: Your offer letter is legally valid today because the 50% rule was not enforced until November 2025. SEZ location is irrelevant. Expect revisions in the coming months as companies align with the newly effective labour codes.