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Licenses And Certifications 11 October 2026

India's 2026 Labour Codes Overhaul Payroll Rules

India's 2026 labour codes introduce major payroll changes, tying the 50% test to Provident Fund and Employee State Insurance ceilings and to state professional tax slabs for every pay cycle. Employers must adjust payroll systems to reflect these combined limits, ensuring compliance and avoiding penalties.

India's new labour codes effective 2026 reshape payroll compliance.

  • The 50% test now applies to each pay cycle, linking PF, ESI ceilings and state professional tax slabs.
  • Employers must update payroll software to reflect these combined limits and avoid penalties.
  • Accurate encoding ensures safer compliance across all employee categories.

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