Wage restructuring for the new Labour Codes — at zero added cost
A 700-employee auto components plant had to realign wage structures to the new Wage Code without increasing cost-to-company or reducing take-home pay.
Auto components manufacturer, Tamil Nadu
0%
Increase in cost to company
100%
Wage Code aligned structure
6 weeks
From audit to rollout
— The challenge
- —Salary structure built over two decades with 14 non-standard allowances
- —New Wage Code definition would have raised PF and gratuity liability sharply
- —Union sensitivity around any change to take-home pay
- —Open compliance findings on Bonus and CLRA records
— What SPARK did
- 01Line-by-line audit of every wage component across all grades
- 02Modelled three restructuring scenarios against cost, take-home and statutory liability
- 03Rebuilt the grade-wise structure to be Wage Code compliant and cost-neutral
- 04Ran joint briefing sessions with union representatives and line supervisors
- 05Closed open PF, ESI, Bonus and CLRA records ahead of the next audit
“We expected a compliance exercise. We got a wage structure our supervisors can actually explain to their teams.”
Head of Operations (client, name withheld)
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