As the new financial year begins on April 1, 2026, salaried employees may notice a shift in how their salary is structured. While your take-home pay may not change drastically, the breakup of your salary and the way taxes are calculated will look different.
These updates come as companies align with new labour laws and revised tax norms announced in the budget.
What's Changing in Salary Structure?
This shift has a ripple effect. A higher basic salary leads to increased contributions towards Provident Fund and gratuity. While this boosts long-term savings and retirement benefits, it may slightly reduce the in-hand salary in some cases.
New Tax Regime Becoming the Default
Old vs New: Which One Works for You?
On the other hand, the new tax regime suits people with fewer deductions or a straightforward salary setup. Freelancers and consultants often prefer it because it involves less paperwork and planning.
What Should You Do?
The best approach is to review your income, expenses, and investments carefully. Choosing between the old and new tax regime depends on your financial habits and long-term goals. A quick comparison can help you make the right call for the year ahead.

