Statutory Compliance in an organization is a comprehensive term that encompasses everything from the deduction of taxes from the employees’ salaries to remitting the deductions to the government. However, it is not merely restricted to these two tasks. Statutory compliance in HR also makes sure that an organization or a company provides their employees with sufficient benefits and standard treatment.
There are many statutory benefits for employees in India. Let’s check some of them out!
1. TDS Deductions
Employees who have a reasonable pay scale must lose a sum of their money to TDS deductions made by the employers of a company. Elements such as education, travel leave, a multitude of investments and medical allowance also impact the TDS deductions.
2. Minimum Wage System
Statutory compliance in HR is also beneficial where the minimum wage system is concerned. This system takes care of the fact that both the unskilled as well as the skilled workers are offered a fixed and standard income for their work. In this regard, the minimum income should also cater to all the necessities, education, comfort and medical needs of the employees.
3. Provident Funds (PF)
HR Compliance and Provident Funds go hand in hand. PF is the money saved after all the workers retire to ensure that all their basic necessities are taken care of despite not being able to work. In the unforeseen event of an employee’s early demise, the Provident Fund is usually passed on to his/her family who can then make use of that retirement money in order to sustain themselves.
4. Gratitude
Gratitude can be taken literally like a gift of a lump sum payment to the employees of an organization for their hard work for the betterment of the company. This “Gratitude” is provided to the employees after they have put in the work of a minimum of 240 days after five years. Thanks to statutory reporting, Gratitude is something like a token of respect to the employees to thank them for putting in their precious work and time for the overall welfare of a company or an institution.
5. Maternity Leave
Maternity leave is definitely one of the perks of a proper human resource information system. It allows the status of all female employees to be enhanced so that they are permitted a leave period of a certain amount of time where they can take care of themselves but still get paid in order to support the entire duration of their maternity period. This leave is a massive benefit for to-be mothers who are working individuals as it goes a long way to improving their working conditions while they are pregnant.
6. Bonus Act
Talking about payroll services such as statutory compliance, we cannot really forget about the Bonus Act which is another perk enjoyed by employers. According to this act, each and every worker deserves and should be offered an extra bonus as well as a few other added perks according to their productivity and performance for a given period of time. This bonus act goes a long way to enhancing the morale of the employees and giving them an extra incentive to work harder at a workplace than they otherwise would and actually, earn to stay in the company for its welfare and growth.
Final Words
Statutory Compliance in HR is, therefore, a significant task carried out by all the Human Resource departments and personnel in their team. This compliance should be carried out by all companies and organizations to ensure they are creating a positive working environment for their employees. In the same vein, employees should also choose their place of work accordingly.
