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