Practical Impact

• 50% rule affects EPF, ESI, gratuity calculations
• Review compensation structures for compliance
• Higher employer outgo likely if allowances exceed 50%
• Update payroll software for new wage calculation

Gig Economy Compliance

• Aggregators must track payments to gig/platform workers
• Calculate contribution: 1-2% turnover OR 5% of payments
• Maintain records of gig worker engagements
• Comply with scheme notifications as issued

Gratuity Administration

• Calculate gratuity for fixed-term employees on a pro-rata basis
• Pro-rata gratuity payable on death/disability regardless of service period
• Higher gratuity base due to wider wage definition
• Working journalists: 3-year threshold retained

EPF/ESIC Management

• Consider voluntary opt-in for establishments below threshold
• Requires employer + majority employee agreement
• Apply to Director-General of ESIC for voluntary coverage
• Track Aadhaar linkage for all employees

Welfare Scheme Funding

• Sources: Central Govt, State Govt, CSR funds, beneficiaries, aggregators
• BOCW cess continues for construction
• Track and remit applicable cess/contributions
• Residential construction <₹50 lakh exempt from BOCW