Highlights In hand pay to shrink. PF, Gratuity components to be hiked. New Delhi: Employees may soon see several changes in their work timing, pay structure, provident fund and gratuity. As per latest media reports the changes in pay structure will mean reduced pay while there will be hike in PF and gratuity portions. Fresh media reports said employees Gratuity and provident fund (PF) will increase while their take home salary will decrease. Under the new definition of wage, allowances will be a maximum of 50 percent of the total salary. Employees whose basic salary is already 50 per cent or more will not be affected. But those with basic salary less than 50 per cent will see a change in their take-home salary. Due to the increase in basic salary, the share towards PF will also increase, since it is calculated on the basis of basic salary. The new rules will likely affect the salary structure of high-paid employees with a high allowance component. Increasing PF and gratuity could also increase the cost of companies as their contribution towards these would increase proportionately.