Hey all,
It would be a great help to me if somebody could provide me with the latest Statutory Compliance study materials, which include everything about the topic. I am working in an IT company as an HR Executive. I have practical knowledge of every gamut of HR except statutory compliance as I didn't get many opportunities to work on that. So, I want to update myself on the same and study more about it. Kindly help me to grow further in my field.
Thanks in advance.
From India, Pune
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8It would be a great help to me if somebody could provide me with the latest Statutory Compliance study materials, which include everything about the topic. I am working in an IT company as an HR Executive. I have practical knowledge of every gamut of HR except statutory compliance as I didn't get many opportunities to work on that. So, I want to update myself on the same and study more about it. Kindly help me to grow further in my field.
Thanks in advance.
From India, Pune
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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
From India, Delhi
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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
From India, Delhi
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Thank you, Pan Singh. The number of employees right now is 15, which will go up to 50 soon. The information you have given is helpful. I also want to know more about various forms used for different acts. If you can provide me with that information as well as details about the salary structure and various deductions because as of now, in my company, only professional tax is being deducted. Soon, the team will reach 20, and I would have to apply various acts.
From India, Pune
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From India, Pune
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Dear Soniya, Thnx for your valued appreciation. I was expecting more comments from fellow experienced members.
Consultant Services for Statutory Compliance
The main thing I suggested is that you have to hire some consultant's services. Getting registrations, preliminary documentation, government liaisoning, etc., involves a lot of expertise. In my opinion, it will be very difficult for you to do all that. Moreover, you will be 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 things easy but cost-efficient as well.
I used to handle these things around 15 years back, so I can’t say properly on various forms. But please 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
I request once again to hire a consultant. This forum is full of such consultants. Please put a new thread and ask, “We need Statutory Compliance consultancy Services.” Soon after, you will get a lot of offers.
Regards
From India, Delhi
Acknowledge(1)Amend(0)
Consultant Services for Statutory Compliance
The main thing I suggested is that you have to hire some consultant's services. Getting registrations, preliminary documentation, government liaisoning, etc., involves a lot of expertise. In my opinion, it will be very difficult for you to do all that. Moreover, you will be 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 things easy but cost-efficient as well.
I used to handle these things around 15 years back, so I can’t say properly on various forms. But please 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
I request once again to hire a consultant. This forum is full of such consultants. Please put a new thread and ask, “We need Statutory Compliance consultancy Services.” Soon after, you will get a lot of offers.
Regards
From India, Delhi
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Statutory Compliance of a Industrial or Commercial Unit.xls
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