Hey all,
It would be great help to me if somebody can provide me with the Latest Statutory Compliance study materials which includes everything about the topic. i am working in a IT company as an HR Executive. I have practical knowledege of every gamut of HR except statutory compliance as i didnt got much opportunity to work on that. so i want to update myself for the same and study more about it. Kindly help me to grow further in my filled.
Thanks in Advance
From India, Pune
8It would be great help to me if somebody can provide me with the Latest Statutory Compliance study materials which includes everything about the topic. i am working in a IT company as an HR Executive. I have practical knowledege of every gamut of HR except statutory compliance as i didnt got much opportunity to work on that. so i want to update myself for the same and study more about it. Kindly help me to grow further in my filled.
Thanks in Advance
From India, Pune
Dear Soniya,
The Statutory Compliances ia a vast thing, being an HR Professional you should know the basic points.
You have not specified No. of employees in your company. The Law switch to high gear as and when the No. of Employees exceeds to certain levels.
The structure and nature of Industry also affects the area of compliances.
Though u should hire a consultants for such kind of things, anyhow there is lot of expertise in the forum for Statutory Compliance, soon you will get lot of suggestions. Pls find the abstract from misc. acts from my part:
EPF:-
It is applicable on every organisation having 20 or more employee. (Voluntree option is also available for less than 20 as well).
EPF is deducted from employee salary @ 12% of Basic + DA. same contribution made from Employer. But the employe contribution is being deposited in two parts 1) Pension Fund @ 8.33% (maximum Rs. 1250/- & 2) The difference amount of Empl. contribution comes in EPF. Earlier it was difficult to calculate, but now everything has turned to Online, so it is easy to upload and deposit the challan (if you have clear salary data).
Challan is deposited under Heads A/c No. 01, 10, 2, 21 & 22. The different heads denotes different fields (you will get auto % online).
As per Rule PF can be deducted on salary upto Rs. 15000/-. But if both (empl. and empr.) are agree same can be deducted and deposited on higher salary as well.
The employee can withdraw his fund after leaving the job.
ESI:-
ESI is deducted from employee gross salary (including OT) @ 1.75% Employer Contribution is @ 4.75%.
ESI is a not refundable scheme it provides medical facility. Employee get medical cards from ESI thru which they
(Employee & his/her familty member) can get medical treatment.
There is Pension scheme as well in case the member get disability from accident/injury during working hour.
Minimum Wages Act:
Each state has defined minimum wages thru its notification/s. You can not pay salary less than the minimum wages.
Moreover you have to comply the difference category of Minimum Wages (Basic, DA, HRA, etc.) as applicable in the State Jurisdiction.
Payment of Wages Act: I have not gone thru this act very deeply, but it should be like, salary whould be paid on or before 07th of every month. Weekly off should be given to employees, salary should be transfer to Bank a/cs thru ECS or cheque should be issued. etcccc.
Gratuity Act:- Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees. On rendering of 5 years’ service it is due. pybl @ 15 days’ wages (last drawn) for every completed year as if the month comprises of 26 days.
Maternity Act:- Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months immediately proceeding the date of her expected delivery.
Leave with average pay for six weeks before the delivery.
Leave with average pay for six weeks after the delivery.
An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage, or premature birth.
In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
If the women is covered under ESI, the facility provided by ESIC dept.
Bonus Act:- Every factory where in 10 or more persons are employed with the aid of power or
An establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year. Salary or wages includes D.A. but not-OT, HRA, incentive or comm. Paid @ 8.33% of the wages drawn during the year.
Hope you will find the above as per requirement, if anything you need in depth/specific point, pls put your querry.
The experience fellow members will clarify the same to the best of their knowledge area.
From India, Delhi
The Statutory Compliances ia a vast thing, being an HR Professional you should know the basic points.
You have not specified No. of employees in your company. The Law switch to high gear as and when the No. of Employees exceeds to certain levels.
The structure and nature of Industry also affects the area of compliances.
Though u should hire a consultants for such kind of things, anyhow there is lot of expertise in the forum for Statutory Compliance, soon you will get lot of suggestions. Pls find the abstract from misc. acts from my part:
EPF:-
It is applicable on every organisation having 20 or more employee. (Voluntree option is also available for less than 20 as well).
EPF is deducted from employee salary @ 12% of Basic + DA. same contribution made from Employer. But the employe contribution is being deposited in two parts 1) Pension Fund @ 8.33% (maximum Rs. 1250/- & 2) The difference amount of Empl. contribution comes in EPF. Earlier it was difficult to calculate, but now everything has turned to Online, so it is easy to upload and deposit the challan (if you have clear salary data).
Challan is deposited under Heads A/c No. 01, 10, 2, 21 & 22. The different heads denotes different fields (you will get auto % online).
As per Rule PF can be deducted on salary upto Rs. 15000/-. But if both (empl. and empr.) are agree same can be deducted and deposited on higher salary as well.
The employee can withdraw his fund after leaving the job.
ESI:-
ESI is deducted from employee gross salary (including OT) @ 1.75% Employer Contribution is @ 4.75%.
ESI is a not refundable scheme it provides medical facility. Employee get medical cards from ESI thru which they
(Employee & his/her familty member) can get medical treatment.
There is Pension scheme as well in case the member get disability from accident/injury during working hour.
Minimum Wages Act:
Each state has defined minimum wages thru its notification/s. You can not pay salary less than the minimum wages.
Moreover you have to comply the difference category of Minimum Wages (Basic, DA, HRA, etc.) as applicable in the State Jurisdiction.
Payment of Wages Act: I have not gone thru this act very deeply, but it should be like, salary whould be paid on or before 07th of every month. Weekly off should be given to employees, salary should be transfer to Bank a/cs thru ECS or cheque should be issued. etcccc.
Gratuity Act:- Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees. On rendering of 5 years’ service it is due. pybl @ 15 days’ wages (last drawn) for every completed year as if the month comprises of 26 days.
Maternity Act:- Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months immediately proceeding the date of her expected delivery.
Leave with average pay for six weeks before the delivery.
Leave with average pay for six weeks after the delivery.
An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage, or premature birth.
In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
If the women is covered under ESI, the facility provided by ESIC dept.
Bonus Act:- Every factory where in 10 or more persons are employed with the aid of power or
An establishment in which 20 or more persons are employed without the aid of power on any day during an accounting year. Salary or wages includes D.A. but not-OT, HRA, incentive or comm. Paid @ 8.33% of the wages drawn during the year.
Hope you will find the above as per requirement, if anything you need in depth/specific point, pls put your querry.
The experience fellow members will clarify the same to the best of their knowledge area.
From India, Delhi
Thank you pan singh. No of employees right now is 15 which will go upto 50 soon. The information you have given is helpful. i also want to know more about various forms used for various acts. if you can provide me with that information as well and also about salary structure and various deduction coz as of now in my company only professional tax is been deducted soon team will reach 20 and i would have to apply various acts.
From India, Pune
From India, Pune
Dear Soniya,
Thnx for your valued appreciation. I was expecting more comments from fellow experienced members.
The main thing I suggested, you have to hire some consultant’s services. Getting registrations, premilinary documentation, govt. liasioning etc tasks involved lot of expertise. As per my opinion, it will be very difficult for you to do all that. Moreover, you will required to make many changes in your working system (Payroll, Wages Structure, Recruitment documentation, financial budget etc.). A proper and reputed consultant will not only make the things easy but cost efficient as well.
I used to do the things around 15 years back, so I can’t say properly on various forms. But pls note the below:-
Form NO 01 - ESI Nomination Form
Form 2 Rev. - EPF Nomination Form
Form 19, 10C - EPF Withdrawal Form
Form 10D - EPF Family Pension
Request once again to hire consultant. This Forum is full with such consultant. Pls put a new thread and ask “We need Statutory Compliance consultancy Services”. Soon after you will get lot of offers.
From India, Delhi
Thnx for your valued appreciation. I was expecting more comments from fellow experienced members.
The main thing I suggested, you have to hire some consultant’s services. Getting registrations, premilinary documentation, govt. liasioning etc tasks involved lot of expertise. As per my opinion, it will be very difficult for you to do all that. Moreover, you will required to make many changes in your working system (Payroll, Wages Structure, Recruitment documentation, financial budget etc.). A proper and reputed consultant will not only make the things easy but cost efficient as well.
I used to do the things around 15 years back, so I can’t say properly on various forms. But pls note the below:-
Form NO 01 - ESI Nomination Form
Form 2 Rev. - EPF Nomination Form
Form 19, 10C - EPF Withdrawal Form
Form 10D - EPF Family Pension
Request once again to hire consultant. This Forum is full with such consultant. Pls put a new thread and ask “We need Statutory Compliance consultancy Services”. Soon after you will get lot of offers.
From India, Delhi
Dear Pan singh,
I have a doubt in EPF, the thing is 12% of EPF is deducted from all the salary components except HRA, it has been newly updated. For ex: In a salary structure i.e., Basic + HRA + DA + CCA present means, the EPF is calculated 12% from basic + DA + CCA.
Kindly clarify the statement i have mentioned above. Just want to know whether my query is correct or not.
From India, Madras
I have a doubt in EPF, the thing is 12% of EPF is deducted from all the salary components except HRA, it has been newly updated. For ex: In a salary structure i.e., Basic + HRA + DA + CCA present means, the EPF is calculated 12% from basic + DA + CCA.
Kindly clarify the statement i have mentioned above. Just want to know whether my query is correct or not.
From India, Madras
Dear Prathi,
EPF is applicable on Basic+DA. In some state DA is not part of Minimum Wages, hence in those state EPF can be deducted only on Basic.
Pls note while deducting EPF, the Basic and DA, if any, should not be less than the Minimum Wages Structure of the State Legislation.
The above are the mandatory points, which can't be avoided.
However, deducting EPF on all salary parts(Basic+HRA+DA+CCA+Conv.+Etc..) or partial salary parts (Basic+DA+CCA+etc.) is management decision.
It is good for employee welfare. But if you want cost optimization, you can deduct PF on Basic + DA only.
Hope you will my clarification as per your requirement. Still for better clarification, I request you to consult the same with your co. consultant.
From India, Delhi
EPF is applicable on Basic+DA. In some state DA is not part of Minimum Wages, hence in those state EPF can be deducted only on Basic.
Pls note while deducting EPF, the Basic and DA, if any, should not be less than the Minimum Wages Structure of the State Legislation.
The above are the mandatory points, which can't be avoided.
However, deducting EPF on all salary parts(Basic+HRA+DA+CCA+Conv.+Etc..) or partial salary parts (Basic+DA+CCA+etc.) is management decision.
It is good for employee welfare. But if you want cost optimization, you can deduct PF on Basic + DA only.
Hope you will my clarification as per your requirement. Still for better clarification, I request you to consult the same with your co. consultant.
From India, Delhi
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Statutory Compliance of a Industrial or Commercial Unit.xls
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