In the previous blog we discussed what exactly is Statutory compliance and why is it necessary to be followed! In here, today we will go at lengths discussing various compliances necessary in India.
What are the Statutory Compliance Required For Indian Payroll management?
The common Statutory Compliance Provider in Ahmedabad that companies in India have to come in line with:
Minimum Wages
This act attributes to fixing minimum rates of wages for skilled and unskilled laborers. The “minimum wages act” guarantees minimum wages for workers. Payment of “overtime wages” on the other hand is also a statutory requirement as per the “Factory Act & Payment of Wages Act.” Which most of the companies fail to address
Often a centralized Payroll Management like the one we offer at Adler can deal with the same discussed.
TDS Deduction
Every company who pay the salary to the employees have to deduct TDS under ”section 192 of the Income tax Act, 1961”, if the salary is more than maximum amount let off from tax. The employers also need to generate “Form 24Q and Form 16” in time. Whilst, there some salary components those have an effect on TDS deduction like: HRA, Special allowance, Leave travel allowance, Children education allowance, Medical allowance, Investments.
Statutory Compliance For ESI Fund And PF Deduction
ESI fund, maintained by ESIC. This is applicable to employees who earn Rs 15,000 or less per month. This states that, it is essential to provide for cash and medical benefits to them and their families.
On the other hand, PF is a compulsory contributory fund for the future of the employees after their retirement or for their dependents in case of their early death.
Professional Taxes
Professional tax is also known as employment tax. It is the deductions from the gross income before computing the payable salary.
Gratuity
Gratuity is kind of dividend given to employees by employer when an employee completes five years in service. Gratuity is calculated as
Basic + DA divided by 26 * No of years of service *15.
There are various other compliance like maternal benefits, ELDI which implies (Employees’ Deposit Linked Insurance Scheme) and other benefits and laws that a company has to follow by default. Adler talent solution which is one of the topmost non-Tech HR service provider company assures you to provide the best in class service spanning over all customized HR services right from Recruitment Services , payroll management to statutory compliance.
For further details contact us.
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