Payroll Confusion: How Do Regional Divisions Affect Remote Workers' Pay in India?

Hi, I need guidance to understand how the payroll is affected for remote working employees hired from different states. My organization is in Mumbai, and we have hired people from different locations—remote working professionals. However, to give the maximum benefit of paid holidays, we are trying to divide employees into three base regions for now: the Western region in Mumbai, the South in Bangalore, and the North in Delhi.

Payroll Issue with Regional Division

An additional PT is coming when we are marking employees under the Bangalore region; however, that is not showing if marked in the Delhi region. We are using Zoho payroll. How to solve this—please help.

State-Specific Holiday and Profession Tax Regulations

Is your query related only to holidays? The number of holidays an employee should be given depends on the state where the employee is located. For example, an employee in Karnataka cannot receive the same number of holidays as one in Kerala. These are regulated by separate state enactments. Therefore, you should follow the respective state's Holidays Act, such as the Karnataka Industrial Establishments (National and Festival Holidays) Act.

Profession Tax Variations

Profession Tax (PT) is also a state subject and will vary from state to state. Therefore, you need to make manual adjustments in payroll software depending on the tax slabs of each location. It is not the fault of the software, but when it comes to fields that require adjustments according to state rules, you should do it manually once so that it can capture the amounts in the future.