Being an HR is not a job that sounds like a child’s play. To many it becomes an ideal job role that they would love to play but to others it is a nightmare. With so many distresses round the clock and throughout the month, an HR’s life can be labelled as a hack of burden. And the most horrifying thought that haunts the HR managers are the Statutory Compliances.
None of the businesses in India or worldwide are blessed with a liberty of being relaxed about their structured statutory norms. It not only becomes a responsibility of an employer to implement these norms legally, but also it requires to catch up with the anytime changes in these statutory laws. And, all this is loaded on the shoulders of HR managers. Imagine the time and efforts they need to put in for these critical matters.
Statutory Compliances for HR- What all it includes?
- ESI (Employee State Insurance Act) – This scheme of financing for Indian workers is structured for providing social security to those earning less than 15,000 rupees a month. The total share of 6.5 percent from which employer’s contribution is 4.75 and self-share is 1.75 percent of the complete wages.
- PF (Provident Fund) – It is a fund that is collected as a security amount from the employee’s salary including the employer’s contribution. This money is later paid to the employee after retirement, death or any other situation where the employee is unable to work.
- Employment or Professional Tax- This tax is deducted according to the different slabs of wages by the specific state governments.
- Gratuity- This is an amount that is collected by the employer over minimum of 5 years of service in a particular organization after the completion of which it is given to the employee or paid off after retirement.
- The minimum wages Act, 1948- This act is based on fixing the minimum wages of an employee including the HRA.
- The Maternity benefit Act, 1961- This act is for securing the life of mother and child during motherhood, at the time of which the woman giving childbirth is not working.
- The Payment of Bonus Act, 1965- It is a type of liability on employers to pay bonus for all employees. This ranges between minimum and maximum limits of bonus that is proportional to the performance of employee.
- The Payment of Wages Act, 1936- The act ensures timely payment of wages without deductions (apart from the ones listed under this act) to a defined class of workers.
HR managers deserve to utilize their valuable time on processes that increase their own and the employees’ efficiency. The statutory compliances being an integral part of the payroll process must be automated for being carried out smoothly, without causing any inconvenience to the HR people through payroll software like PayWheel.
PayWheel is an extensive online payroll software that tackles all the stressful HR tasks by providing high-end payroll management solutions like salary processing, employee self-service, attendance management and more. It is a web based payroll software that also operates on cloud.