The new labour code is well short of reforms needed from employers’ view as well Equity. It was desirable to make CTC definitive and transparent, and put on paper as such. Which sadly, it is not at present. Example: . Annual bonus and gratuity are variable components which should be determined and ‘fixed’ for each financial year and taxable profit determined accordingly. every employee needs to know this instead of waiting for an undetermined future period. All perks should be cash converted using arm’s length pricing for the purpose of determining CTC. It is absurd to provide promoters high end ( > even Rs 1 crore) cars or posh housing with complete furnishings and maintenance. All actual expenses including loan interest, depreciation etc being tax deductible. They are charged nominal perk value for tax purposes.