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What is Payroll ?

Every company in India spends a lot of money, effort, and time to ensure that its payroll is compliant through a proper audit. Payroll processing and HR management is a highly complex task for most small businesses due to the various compliance requirements in India. The legal framework of payroll compliance refers to which companies or organizations must adhere with regard to the treatment of their workers or employees. The companies dealing with payroll compliances need to be well-versed with the different labor laws or labor regulations in India, everything from being compliant to the minimum wages paid to maternity benefits to provident funds needs not only a lot of time but also experts who can give advice on all of these compliance measures. MyFiler's experts ensure that you enjoy a stress and error-free payroll cycle every month and stay legally compliant.

Importance of Payroll Compliance and HR Management

Every country has its own set of state and central labor laws that companies need to comply with. It is very important for a company in India to comply with set of Central and State labour laws, non-compliance with these regulations can cause a company a lot of legal trouble such as penalties and fines. The following are some of the common risks of statutory non-compliance:

  • - Loss of the company’s integrity, reputation, and goodwill
  • - Withdrawal of fiscal benefits
  • - Imposition of fines
  • - Cancellation and suspension of operational licenses
  • - Legal troubles as the company is not fully compliant
  • - Loss of faith in the company’s stakeholders and investors
  • - Penal liabilities against the Directors or officers of the company
  • - Negative impact on the company’s productivity, and many more
Statutory Compliances for Payroll in India

Here are some common statutory requirements that businesses in India have to adhere:

  • - The Factories Act
  • - Shops and Establishment Act
  • - The Employees’ State Insurance Act
  • - Professional Tax Act
  • - Labour Welfare Act
  • - The Minimum Wages Act
  • - The Payment of Wages Act
  • - The Apprentices Act
  • - The Employees Provident Fund & Miscellaneous
  • - Provisions Act
  • - Building and Other Construction Workers Act
  • - The Payment of Bonus Act
  • - The Contract Labour (Regulation & Abolition) Act
  • - The Child Labour (Prohibition & Regulation Act)
  • - The Industrial Disputes Act
  • - The Payment of Gratuity Act
  • - The Industrial Employment Standing Orders Act
  • - The Equal Remuneration Act
  • - The Employee Compensation Act
  • - Sexual Harassment of Women at Workplace Act
  • - The Employment Exchanges (Compulsory Notification of Vacancies) Act
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