Dear all
A Happy Ganeshotsav to all!!
Need some advice on the following issue.
We are a third party payroll management firm in Mumbai. Recently we have been offered to manage payroll function for the entire Western region comprising of Five states by one of our client.
My concern is:
1. Are we suppose to process payroll according to Maharashtra rules or rules specific to the work locations?
2. What are the components that change with the locations?
3. How can the PF, ESIC & PT be managed for these?
4. Any other implications?
Request you to please enlighten me on the above mentioned issue.
Thanks in advance.
From India, Mumbai
A Happy Ganeshotsav to all!!
Need some advice on the following issue.
We are a third party payroll management firm in Mumbai. Recently we have been offered to manage payroll function for the entire Western region comprising of Five states by one of our client.
My concern is:
1. Are we suppose to process payroll according to Maharashtra rules or rules specific to the work locations?
2. What are the components that change with the locations?
3. How can the PF, ESIC & PT be managed for these?
4. Any other implications?
Request you to please enlighten me on the above mentioned issue.
Thanks in advance.
From India, Mumbai
The pay roll in different states , in my view, has to be run according to the laws appicable to that state. Though P.F ESI are central Acts, the Professional Tax Act and the Labour Welfare Fund Act etc are States Acts and the provisions may be different from State to State.You need also verify whether there exists any other State Act calling for deductions from employee's side to wards any state welafre schemes.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
1897B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
PF / ESI remains the same throughout and you can take central processing in Bombay HO. For P-tax, Company tax and LWF, slabs prescribed by respective corporation have to be followed in every state. Yes, it varies from state to state. Each branch outside HO has to remit cheque/DD to the labour licence officer based on the average of six months gross salary of employees of that branch every half-yearly. Please refer to the respective state government labour site for income range and tax slabs.
Else you may end up paying P-tax for all employees under maharashtra slab plus P-tax of those in branches to respective corporations. Double remittance indeed..!!
Regards
Chandru
From India, Madras
Else you may end up paying P-tax for all employees under maharashtra slab plus P-tax of those in branches to respective corporations. Double remittance indeed..!!
Regards
Chandru
From India, Madras
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.
Employer cannot compel employees to open salary act in its bank - Kerala HC 14.3.2017.pdf
LEAVE SALARY CALCULATOR OF W.B.Govt employees.xls
Letter to employees for salary cut.docx