PAYROLL STATUTORY

PAYROLL STATUTORY SERVICES

Payroll statutory compliance is the set of rules and regulations that businesses must follow to ensure they are paying employees correctly and legally. 

These rules include: 

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Employee Provident Fund (EPF):

The EPF Act ensures that a portion of an employee's salary is deducted and deposited into a fund to help them in times of crisis @ Total : 25%.

Employees' State Insurance (ESIC):

The ESI Act ensures that a small portion of an employee's salary is allocated to the ESIC, which provides a minimum level of insurance for the employee & its Family @ Gross with  4 %. 

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Professional Tax (PT) :

A tax that is deducted from an employee's salary and paid to the state. 

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Tax deductions: 

Tax Deducted at Source (TDS) is a tax collected from an employee's income at the source. TDS rates vary depending on the income earned and the tax regime selected by the employee. 

Benefits :

The Maternity Benefit Act provides paid maternity leave and protects women from discrimination. 

Minimum wages :

The Minimum Wages Act sets minimum wage rates for employees. (State & Central Govt.) 

Bonuses :

The Payment of Bonus Act provides cash incentives to employees based on the company's profit and productivity. 

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Gratuity:

The Payment of Gratuity Act requires employers to pay gratuity to employees who have worked for them for at least 5 years from Date of Joining. ​

Statutory compliance is important for both employees and employers. It can help to prevent exploitation, harassment, and undesired working hours, while also ensuring that employees are paid correctly for their work.