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Payroll and Compliance Awareness

Payroll readiness under the Labour Codes

Wage definitions, PF ceiling and overtime rules have changed. Organise inputs so payroll stays accurate.

Recheck the wage definition

Allowances above 50% of total remuneration are added back to wages for statutory calculations. Review structures with your payroll partner before the next cycle.

Apply the new PF ceiling

From 17 September 2026 the PF wage ceiling is ₹25,000. Update payroll masters and identify employees newly covered.

Track overtime correctly

Overtime beyond normal hours is payable at twice the ordinary rate. Attendance data needs to be accurate and approved before cutoff.

Set ownership and cutoffs

Identify who prepares, reviews and approves each input, and agree handover dates. Reconcile headcount, joiners and leavers every month.

Keep coordination distinct from advice

Administrative coordination is not a substitute for regulated advice. Consult qualified legal, tax or statutory professionals for obligations that apply to your business.

This article is general information, not legal, tax, or regulated statutory advice. Requirements vary by business and location; seek appropriately qualified advice where needed.

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