What Is Statutory Compliance In Payroll And HR In India: The Ultimate Guide

What Is Statutory Compliance?

To know statutory compliance meaning. You first have to understand that a statutory is nothing but a set of rules that have been set by the HR of a company. Every company in India functions and adheres to the guidelines of what is statutory compliance.

As a renowned company of HR services in Bangalore, we can say that these rules are pre-set by the legal department of payroll in India. Failing to follow these in India can lead to severe legal complications. A statutory compliance list covers all the rules on how a company in India should operate. And, it focuses on the benefits of the employees and employers of an organization.

Cube Consultancy Services is a payroll services in Bangalore. If you have a company then it is important to follow these payroll and statutory compliance rules as it is fastened by both the central and state government of India. That is why it is necessary to follow both the central as well as state rules of compliance.

We have provided a payroll compliance guide in this blog for you. Read on to know more about it.

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Why Statutory Compliance In payroll And HR Is Important?

Now that you know what is statutory compliance in India. Recruitment agency in Bangalore and other parts of India also follows these employee payroll guidelines in India. To ensure, that employees get the utmost benefit and can enjoy the facilities in an organization. The statutory compliance services take care of the employees due so that they can get their respected dues on time.

This ensures a clear flow of organizational values in a company. It also helps in establishing the brand name of a company in India so that the popularity of the organization can be evident among the employees.

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What Are The Benefits Of Statutory Compliance Payroll And HR?

As we are providing a guide to payroll and HR compliances. We will be sharing the top benefits of these rules and regulations in this blog as well.

The benefits of what is statutory compliance are not just about maintaining national legal guidelines. But also about protecting a company or business so that it can grow faster without complications. So, let's see what are the benefits of it.

1) Income Tax And Legal Defense

As you already know, the income tax department of India has revised its tax slab for the years 2023 to 2024 for every employee in the country.

The HR and payroll services of a company take care of filing the tax on time from each employee's salary. So that, the company and the employees have to face no legal battle in the future. The income tax slab for employees earning less than 5 lakhs in a year is 5%. While employees earning more than 5 lakhs and 10 lakhs are subjected to a tax deduction of 20% and 30% of their gross salary.

2) Equal Employee Pay

The benefits of payroll compliance laws also take care of every employee. So that, they can get equal payment per year from an organization they work in irrespective of their gender. The HR of a company incorporates the minimum wage act as well in the payroll and HR compliance. To ensure, no employee gets low pay as set by the law of the state government.

3) Employee Benefits And Security

Under the leave policy and maternity benefits. Each employee is subject to get paid leaves and maternity leaves from an organization.

The HR of an organization sets the compliant payroll adhering to the national workers benefit act.

4) Documentation In Payroll & Compliance

Every HR of a company or business tracks the record of each employee through a proper documentation process. This documentation carries important information about each employee in an organization. Such as address, position in the organization, wage payroll, name, and much more.

Documentation is important to safeguard the employer and the employee's best interest.

5) Maintaining Workplace Culture

Under payroll and HR compliances, a set of rules are fastened in each company. To keep up a toxicity-free working environment. Any employee who is subject to harassment can complain the HR about it. The HR guidelines in compliance have to maintain full dignity and integrity in safeguarding the employees from such harassment.

This in turn makes the company trustable among employees so that the efficiency of an organization can bloom.

6) Initiating Laws For Women's Protection

An organization’s payroll statutory compliance also gives extra benefits to every working women employee. This safeguards the female employees in an organization against sexual harassment under the sexual harassment law.

This initiates the HR to maintain the integrity of an organization. Anyone subjected to sexual harassment can complain to the HR of a company. And necessary steps would be taken against the culprit.

7) Provides Advantage From Competitors

Incorporating the laws and regulations of what is statutory compliance in an organization. Maintains a competitive balance for an organization so that the competitors can stay out of the business. It also protects the reputation of a company.

8) Ethical Practices

The addition of compliance rules in payroll and HR maintains ethical practices within an organization. This practice smoothens the company’s working system while taking care of what we know as corporate social responsibility (CSR).

Read More: What Is A Payroll Management System And How Its Transforms HR

Conclusion

In the concluding lines, HR and payroll compliance are the bedrock of a company for an effective framework in India. It is not only about maintaining the legal complications. But also focuses on making a strategic plan for an organization to stay ahead of the competition.

So, if you want to secure your organization in the prospects of longevity. Then, start incorporating compliance in HR and payroll.

You can also contact us on our website of Cube Consultancy Services to know more.