Issue 35 • May 2017

From Dezan Shira & Associates

Payroll Processing and

Compliance in India
P.04 Payroll Calculation, Processing, P.12 The Applicability and Calculation
and Reporting in India of Gratuity in India

P.09 The Social Security System in India P.14 Outsource Payroll Processing and
Optimize your Business Operations

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Introduction Years
1992-2017

ROHIT KAPUR www.dezshira.com

Country Manager
Dezan Shira & Associates
www.asiabriefing.com

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Businesses in India have to contend with the dual challenge of employment laws and regulations
derived from multiple sources. Some of these sources are the constitution, labor statutes, judicial
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precedents, and collective and individual agreements.

In addition, labor matters come under the concurrent list of subjects in the Indian constitution. This www.indonesiabriefing.com

means that labor regulations are in the jurisdiction of both federal and state governments, which
have respectively enacted numerous laws on labor relations and employment matters. www.vietnam-briefing.com

These directly impact payroll considerations in the country as they shape the provisions for holidays,
leaves, minimum wages, social security, and penalties for non-compliance. Reference
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India’s tax environment can also be complicated for small and medium sized enterprises as well
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as foreign managers. Companies in India need to stay alert to the latest regulatory changes when
computing payroll tax and deductions. These include personal income tax for employees, social Content is provided by
Dezan Shira & Associates. No liability
security costs, and withholding tax.
may be accepted for any of the contents
of this publication. Readers are strongly
In this edition, we discuss payroll processing and reporting in India, and the various regulations and tax advised to seek professional advice when
actively looking to implement suggestions
norms that impact salary and wage computation. Further, we explain India’s complex social security
made within this publication.
system and gratuity law, and how it applies to companies. Finally, we describe the importance of IT
infrastructure, compliance, and confidentiality when processing payroll in India. For queries regarding the content of
this magazine, please contact:
editor@asiabriefing.com
This issue of India Briefing will inform readers about the most updated calculation of payroll in India,
All materials and contents
social security laws, matters governing gratuity payment, and the benefits of outsourcing payroll
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Credits
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Rohit Kapur Editor / Melissa Cyrill
Design / Belén Rodríguez and Kking Lu

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 Table of Contents

P.04
Payroll Payroll Calculation, Processing,
and Reporting in India

P.09
The Social Security System in India

P.12
The Applicability and Calculation
of Gratuity in India

This Issue’s Topic P.14

Payroll Processing and Outsource Payroll Processing
and Optimize your Business Operations
Compliance in India

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Strategic Advisory & Commentary

Online Resources on Emerging Asia
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Understanding Labor Contracts in China, India and Vietnam Regulatory Framework & Updates

Payroll Processing in China: Challenges and Solutions

Legal, Tax, Accounting News
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Managing Payroll in Vietnam Cross Region Comparisons

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Guide to New Visa Regulations in Asia-Pacific
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India Briefing · Issue 35 · May 2017

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