Understanding Statutory Compliances
The topic of statutory compliances is vast. As an HR professional, you should be familiar with the basic points.
You have not specified the number of employees in your company. The law becomes more stringent as the number of employees exceeds certain levels. The structure and nature of the industry also affect the area of compliances.
Though you should hire consultants for such matters, there is a lot of expertise in the forum regarding statutory compliance. Soon, you will receive many suggestions. Please find the abstract from miscellaneous acts from my part:
EPF (Employees' Provident Fund)
It is applicable to every organization having 20 or more employees. (A voluntary option is also available for fewer than 20 employees.) EPF is deducted from the employee's salary at 12% of Basic + DA, with the same contribution made by the employer. However, the employee's contribution is deposited in two parts: 1) Pension Fund at 8.33% (maximum Rs. 1250/-) and 2) The difference amount of the employee's contribution goes into EPF. Earlier, it was difficult to calculate, but now everything has moved online, making it easy to upload and deposit the challan (if you have clear salary data).
The challan is deposited under Heads A/c No. 01, 10, 2, 21 & 22. Different heads denote different fields (you will get auto % online). As per the rule, PF can be deducted on a salary up to Rs. 15000/-. However, if both the employee and employer agree, it can be deducted and deposited on a higher salary as well. The employee can withdraw their fund after leaving the job.
ESI (Employees' State Insurance)
ESI is deducted from the employee's gross salary (including OT) at 1.75%, with the employer's contribution at 4.75%. ESI is a non-refundable scheme that provides medical facilities. Employees receive medical cards from ESI through which they (and their family members) can get medical treatment. There is also a pension scheme in case the member becomes disabled from an accident or injury during working hours.
Minimum Wages Act
Each state defines minimum wages through its notifications. You cannot pay a salary less than the minimum wages. Moreover, you have to comply with the different categories of minimum wages (Basic, DA, HRA, etc.) as applicable in the state jurisdiction.
Payment of Wages Act
I have not gone through this act very deeply, but it should be like this: salary should be paid on or before the 7th of every month. Weekly offs should be given to employees, and salary should be transferred to bank accounts through ECS or a cheque should be issued, etc.
Gratuity Act
This applies to every factory, mine, oil field, plantation, port, railways, company, shop, establishment, or educational institution employing 10 or more employees. On rendering 5 years of service, it is due, payable at 15 days' wages (last drawn) for every completed year as if the month comprises 26 days.
Maternity Act
Women, whether temporary or unmarried, are eligible for maternity benefits when expecting a child and have worked for their employer for at least 80 days in the 12 months immediately preceding the date of expected delivery. Leave with average pay is provided for six weeks before the delivery and six weeks after the delivery. An additional leave with pay for up to one month is available if the woman shows proof of illness due to pregnancy, delivery, miscarriage, or premature birth. In case of miscarriage, six weeks leave with average pay is provided from the date of miscarriage. If the woman is covered under ESI, the facility is provided by the ESIC department.
Bonus Act
This applies to every factory where 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 include D.A. but not OT, HRA, incentive, or commission. It is paid at 8.33% of the wages drawn during the year.
Hope you will find the above information as per your requirement. If you need anything in depth or specific points, please put your query. The experienced fellow members will clarify the same to the best of their knowledge.
Regards