5 payroll compliance changes for FY 2026
What HR and finance leaders must know before the next payroll run.
New wage code effective dates
Roll-out of the four labour codes has been notified for FY 2026 in a phased manner. Finance and HR teams should reconcile CTC structures, statutory ceilings, and gratuity bases to align with the updated definitions of 'wages'.
EPF, ESI and PT ceiling updates
Revised contribution ceilings and slabs for EPF, ESIC and state professional tax have been released. Make sure your payroll engine reflects each state's slab table before the April run.
TDS on salaries under the new regime
The new tax regime is now the default. Employees who opt out must submit Form 10-IEA in the first quarter. Update declarations, proofs, and Form 16 mappings accordingly.
e-Nomination and UAN validation
EPFO mandates e-nomination and Aadhaar-linked UAN validation. Blocked contributions can delay salary credits, so verify each employee's KYC status monthly.
State-wise gig worker regulations
Karnataka, Rajasthan and Telangana have introduced gig worker welfare cess. If you engage gig or contract labour, add the levy in your vendor payment workflow.
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