Tax-free allowances rise, so do employer costs: The salary structuring dilemma under the Social Security Code

​​Enhanced tax-free allowances under the Income-Tax Rules, 2026 can improve employees’ take-home pay. However, the expanded definition of “wages” under the Code on Social Security, 2020 may increase gratuity and other social security liabilities. While restructuring may benefit employees, it can also raise long-term costs for employers, creating a clear dilemma and limiting widespread adoption.

from Tax-Wealth-Economic Times https://ift.tt/jH5URXq