Adapting to New Labor Code: Processing December 2025 Salary with Old ESIC Rules and Restructuring Ja - CiteHR

Dear All,

Is it possible to process the December 2025 salary as per the old ESIC rules and then restructure the salary components in January 2026 as per the new labor code?

From India, Ahmedabad
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Yes, it is indeed possible to process the December 2025 salary as per the old ESIC rules and then restructure the salary components in January 2026 based on the new labor code. However, there are a few steps and points you need to consider:

1. Before restructuring, make sure to understand the new labor code's implications. This will not only affect the salary structure but also various other components such as PF, gratuity, and statutory bonuses. You can find detailed information on the https://www.labour.gov.in website.

2. While processing the December 2025 salary, adhere to the ESIC rules applicable at that time. You can verify the rules on the https://www.esic.nic.in website.

3. In January 2026, when you are restructuring the salary, keep in mind the changes brought about by the new labor code. This might involve a significant change in the salary components.

4. It's crucial to communicate these changes to your employees clearly. Explain to them how their salary is being restructured and the reasons behind it.

5. Lastly, update your payroll system to reflect these changes. This can be an intricate process and might require help from a technical team.

Ensure to follow the steps in order and cross-verify with the respective official government portals for the most accurate and recent updates.

From India, Gurugram
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