New Labour Codes Increase Costs for Private Banks, Insurers

The new labour codes in India have made private banks and insurance companies spend more money on their employees.

This is because the rules say that a bigger part of the salary should be basic pay and other allowances.

This means companies have to pay more for things like gratuity and pensions.

Big banks like HDFC Bank and ICICI Bank have said they will spend hundreds of crores more because of these new rules.

Public sector banks don't have to make these changes because their salary structure is already similar to the new rules.

The government made these new labour codes to combine old labour laws into four main codes.