A manufacturing company in Faridabad with 85 workers received a Section 7A inquiry notice from EPFO in September 2024. The inquiry covered a three-year period. The core issue was simple: the company had been calculating PF on basic salary only not on basic plus HRA, as the EPFO enforcement officer argued was correct given the […]
A business owner in Mumbai had narrowed down her payroll outsourcing search to three providers. She had done the research: understood pricing models, evaluated cost factors, calculated ROI. Now came the harder decision: which vendor should she actually sign a contract with? She reviewed their websites, read generic testimonials, looked at price quotes. But she […]
A senior accountant at a growing organization discovered a persistent problem during month-end close. The finance team could not reconcile payroll expenses to the amount actually paid to employees. Some transactions were recorded twice. Other deductions were not recorded at all. The statutory contribution amounts in the accounting system did not match what was remitted […]
The Haryana Labour Welfare Board has revised the Labour Welfare Fund contribution cap effective 1 January 2026. The revision is documented in Notification No. HLWB/REV/2026/3436, dated 8 May 2026, signed by Anil Vij, Labour Minister-cum-Chairman of the Haryana Labour Welfare Board. Under this notification, the employee contribution cap has been raised from Rs. 34 per […]
When an HR manager calculates PF contributions, a critical question arises: which allowances count toward PF wages and which do not? Many organisations get this wrong either over-contributing (paying extra PF unnecessarily) or under-contributing (creating compliance violations). The difference lies in understanding how EPFO classifies different pay components under the law. The Employees’ Provident Funds […]
Every Indian employer carrying a payroll regardless of company size, industry, or number of states — operates against a set of statutory deadlines that do not move and do not forgive. A single missed TDS deposit by one day attracts interest at 1.5% per month. A missed PF ECR filing triggers 12% per annum interest […]
Every October and November, HR teams across India face the same compliance question. Karnataka has sent a reminder. The half-yearly LWF deduction is due. The payroll manager searches the internal records and finds that the company has been operating in Bengaluru for fourteen months. The Karnataka LWF registration was never done. The contributions were never […]
When an employee leaves your organization, the final settlement process determines how much you owe them and ensures you comply with statutory requirements. This critical process extends far beyond simply calculating and paying the last month’s salary. Proper full and final settlement protects your organization from disputes, legal action, and regulatory penalties while ensuring employees […]
Thursday afternoon. The HR manager of a manufacturing unit in Faridabad opens a cover letter from the labour department. It is a Show Cause Notice with a 15-day response window. The notice references three specific sections of the Factories Act and asks the employer to explain why penalty proceedings should not be initiated. The owner […]
It was March 26, 2026. A retail chain owner in Delhi was wrapping up the financial year when his chartered accountant called with a question: “Can you send me a list of all annual labour law returns we need to file by March 31?” The owner went blank. Additionally, he had no idea what returns […]
A factory compliance audit is one of the most valuable exercises a manufacturing business can undertake — and one of the most consistently deferred. The logic behind deferral is always the same: the unit is running, production targets are being met, and no one has received a notice. Why create work that does not appear […]
If your business operates in Odisha or if you employ staff based in the state here is a payroll change you need to implement right away: Professional Tax in Odisha no longer exists. The Governor of Odisha promulgated Odisha Ordinance 02 of 2026 on 21 April 2026, repealing the Odisha State Tax on Professions, Trades, […]
If your business operates in Uttar Pradesh — whether in Noida, Ghaziabad, Lucknow, Kanpur, Agra, or any other district there is a mandatory minimum wage revision you must act on immediately. The Government of Uttar Pradesh, vide Notification Order No. 374/36-2-2026-2041256 dated 17 April 2026, has revised minimum wages across all districts of the state, […]
Operating a manufacturing facility in India without a valid factory license is illegal. The Factories Act, 1948 mandates that every factory must be registered and licensed by the appropriate government authority before commencing operations. Additionally, licenses must be renewed annually. Furthermore, many facility owners are unaware of the detailed registration and renewal procedures. Most importantly, […]
It was Monday morning when the Labour Commissioner’s team showed up at the factory gate. Additionally, no warning was given. Furthermore, they announced an inspection and the HR manager’s heart sank. Most importantly, the manager hadn’t checked compliance in months. What happened next? The inspector walked through the facility. Additionally, within 30 minutes, he’d found […]