After the implementation of new labor codes in India, employees thought that salary hikes would be affected, but according to the latest reports, most companies will continue with their planned increments. In November 2025, 4 new labor codes came into force, due to which the calculation of gratuity, bonus, overtime and leave encashment changed. This has increased employee costs, especially in the IT sector. Still, experts say that the increments will not be too slow, because talent retention is important. The average salary hike in 2026 may be around 9%. The use of automation and AI may increase in the long term, but the chances of salary growth stopping completely are slim.
What will be the impact on salary hikes after New Labor Codes? | Money Live | What will be the impact on salary hikes after the new labor codes?
