Table of Contents
Practical Impact
Wage Restructuring Required
Payment Process Changes
Compliance Documentation
Practical Impact
Wage Restructuring Required
Review compensation structures to check 50% exclusion rule impact
Recalculate PF, ESI, gratuity bases if allowances exceed 50%
Consider impact on cost-to-company calculations
Update payroll software for new definitions
Payment Process Changes
Update payroll processing calendar (7th instead of 10th)
Implement 2-day full & final settlement process for wages
Set up digital payment infrastructure if not already present
Create documentation trail for all deductions
Compliance Documentation
Maintain records of wages paid for 3 years
Display wage rates in establishment
Issue wage slips to all employees
File returns with Inspector-cum-Facilitator