Labour Law Compliance & Managed Payroll Services

In the new era of Indian employment regulation effective from late 2025, compliance is no longer a "year-end" activity—it is a daily digital mandate. Sagar S Gupta & Co provides a tech-enabled, audit-ready framework to manage your workforce, ensuring that your business remains a "Preferred Employer" while staying 100% protected from the stringent penalties of the 2026 Labour Codes.

Navigating the 2026 Labour Reforms

The consolidation of 29 legacy laws into four streamlined codes has changed how every rupee of salary is calculated. Our experts help you navigate:

• The 50% Wage Rule: We restructure your CTC to ensure "Basic Pay" plus "DA" constitutes at least 50% of total remuneration, preventing retroactive PF and Gratuity liabilities.
• The 48-Hour Exit Rule: Our streamlined payroll systems ensure that Full & Final (F&F) settlements are completed within the mandatory two working days of an employee's departure.
• Gig & Contract Labour Parity: Ensuring social security benefits (ESI/PF) for your fixed-term and contract staff to avoid "Principal Employer" liability.

Our Comprehensive Service Suite

1. Strategic Payroll Outsourcing

Move beyond spreadsheets. We provide a managed payroll ecosystem that is always in sync with the latest tax and labour updates.

• Monthly Pay Runs: Accurate calculation of gross-to-net, including complex overtime and shift allowances.
• Statutory Deductions: Seamless management of PF, ESI, Professional Tax (PT), and LWF.
• Digital Payslips: Automated delivery of encrypted wage slips via email or employee portals.

2. Statutory Registrations & Filings

We handle the "Shram Suvidha" portal and other regulatory gateways so you don't have to.

• PF & ESI Management: Timely generation of ECRs and monthly challans by the 15th of every month.
• Shop & Establishment Act: Multi-state registrations and annual renewals.
• Bonus & Gratuity Act: Ensuring pro-rata gratuity for fixed-term employees (now eligible after just 1 year of service).

3. Labour Law Audits & Advisory

Don't wait for a government inspection. Our proactive audits identify gaps before they become legal issues.

• Compliance Health Check: Verification of attendance, wage registers, and safety training logs.
• PoSH Compliance: Setting up Internal Committees (IC) and managing annual reports for workplace safety.
• Contractor Due Diligence: Auditing your vendors to ensure they aren't creating a hidden liability for your company.

The Cost of Non-Compliance in 2026

Under the new regime, penalties have increased significantly. Digital tracking by the government means "invisible" errors are now automatically flagged.

Why Choose Sagar S Gupta & Co?

• CA-Led Oversight: Every payroll run is reviewed by qualified accountants, not just software.
• Multi-State Expertise: We manage state-specific Professional Tax and Labour Welfare Fund nuances across India.
• Audit-Ready Documentation: We maintain "Cloud Vaults" of your records, making departmental inspections stress-free.

Frequently Asked Questions (FAQs)

Q: Has the definition of "Wages" changed for PF calculations?

A: Yes. Under the 2026 Code on Wages, if your allowances (HRA, Travel, etc.) exceed 50% of the total salary, the excess is now added back to your "wages" for PF and Gratuity calculations.

Q: Is ESI mandatory for small offices?

A: Currently, ESI applies to establishments with 10 or more employees (or even 1 employee in hazardous sectors). We help determine your specific applicability to avoid interest penalties.

Q: Can we hire workers on "Fixed-Term" contracts?

A: Yes, the 2026 codes formalize Fixed-Term Employment (FTE), but you must provide them the same benefits and pro-rata gratuity as permanent staff.

Secure Your Workforce Compliance Today

Don't let legacy payroll structures put your business at risk. Let our experts modernize your HR compliance.