For years, a steady monthly salary was considered a sign of safety. Paydays brought comfort, EMIs felt manageable, and financial planning often focused just on basic savings and home loans. But as 2026 begins, that feeling of stability is tested. Rising living costs, changing job patterns, and major labour law reforms are pushing Salaried Indians to rethink how secure their finances truly are.
The government has recently announced draft rules for the four labour codes and asked for feedback from stakeholders within a set time. These codes consolidate 29 central labour laws into four main pieces of legislation covering wages, industrial relations, social security, and occupational safety. They are now moving closer to implementation in 2026.
What does 50% wage rule for Salaried Indians
One significant change comes from the wage code, which requires that basic pay make up at least 50% of total compensation. While this improves long-term benefits linked to basic wages, it also lowers monthly take-home pay for many salaried workers.
Vibhore Goyal, Founder of OneBanc, explains the real impact. “A change that reduces about Rs 8,000 from monthly take-home pay can reshape spending habits. That is the practical impact a Rs 25 lakh salaried professional will feel as companies adjust to the 50% wage definition under the new labour code. It is not a shock; it is a sting.”
How salary pressure shows up in daily life
As take-home pay decreases, discretionary spending is often the first area to cut. Goyal provides a familiar example. “Take Rohan, a product manager in Bengaluru. He will simply reduce discretionary spending. There will be fewer food delivery orders, fewer electronics upgrades, and fewer weekends that end with shopping bags. That affects consumer brands first, and those brands are already facing lower demand.”
He also notes that the slowdown is already visible across sectors. “Even winter apparel demand has been weak, with retailers warning of a sales drop of about 27.3% in North India, even as we face one of the harshest winters of our time.”
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