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New Labour Codes and the Income-tax Act, 2025.see what’s changing

The compliance engine

28 states and 8 UTs.36 statutory positions.One payroll run.

A company working across India does not have one statutory position. It has one for every state and union territory it operates in, each with its own slabs, frequencies and deadlines. EZER holds every entity and every location in one operation, so each is worked out in the same payroll run instead of being assembled one branch at a time in the week before it is due.

Calculated in the run

Wage and muster registers
Per location, in the format the applicable state requires
EPF ECR
Per registration, ready to file
ESIC returns
Contribution-period aware
Professional Tax
State-wise, by work location
LWF
At each state’s rate and frequency
TDS and Form 130
New regime by default, old by opt-out

Compliance, the way Indian law works

Indian payroll law,already in the rules.

Rules are set per state, per industry and per establishment type, so a factory in Pune and a branch in Bengaluru are each calculated the way their own law requires.

Three tools, one engine

  • Compliance engine

    Rules for every state, establishment type and Labour Code, held as configuration and applied inside the payroll run. When a notification lands, the rule changes, not the release.

    28 states & 8 UTs4 Labour CodesPer establishment

    Every head it covers
  • Pan-India minimum wages tracker

    Every employee’s pay checked against the notified minimum wage for their state, skill category and zone, with any shortfall flagged before the run is released.

    Code on WagesState · skill · zoneBefore release

    See it in the table
  • TDS calculator, old vs new regime

    Employees see both regimes on their own salary and declarations before they choose. The new regime by default, the old one by opt-out, Form 130 at the end of the tax year.

    Income-tax Act, 2025Both regimesForm 130

    Try the calculator

The four Labour Codes have been in effect since November 2025, and state-level rules are still being notified in phases. EZER tracks each notification as it lands, so your registers keep reflecting the rules that apply to you now rather than the ones that applied last year.

What changed, and when

The law moved four times in a year. The rules moved with it.

Each change is held as configuration with the date it takes effect, so a month before the change is worked out under the old rule and a month after under the new one.

  1. 17 Sept 2026

    EPF wage ceiling ₹25,000

    The mandatory EPF wage ceiling rose from ₹15,000 to ₹25,000 a month, its first revision since 2014. Employees earning ₹15,001 to ₹25,000 are now covered as of right.

    In EZER: Ceiling held per date, so August runs on ₹15,000 and later months on ₹25,000.

  2. 25 Aug 2026

    Bonus ceilings under the Code on Wages

    Eligibility for statutory bonus is set at wages up to ₹21,000 a month, and the bonus is calculated on ₹7,000 or the minimum wage, whichever is higher.

    In EZER: Two ceilings, not one: eligibility and calculation are checked separately.

  3. 1 Apr 2026

    Income-tax Act, 2025 · Form 130

    The Income-tax Act, 2025 replaced the 1961 Act. Salary TDS moved to section 392, the new regime became the default, “tax year” replaced FY and AY, and Form 130 replaced Form 16.

    In EZER: New regime by default with an old-regime opt-out, a tax-year projection, and Form 130 at year end.

  4. 21 Nov 2025

    Four Labour Codes in force

    The Code on Wages, the Industrial Relations Code, the Code on Social Security and the OSH Code replaced 29 central labour laws, with one definition of wages and the 50% rule behind PF, ESIC and gratuity.

    In EZER: Code wages with the 50% add-back, applied to PF, ESIC and gratuity in every run.

Compliance, the way Indian law actually works

Built for the new Labour Codes, and configured to your industry rather than just your headcount

Labour law compliance in India was never one law. It is dozens of them, state by state and industry by industry. EZER’s compliance engine is where that complexity gets absorbed instead of being passed on to your HR team.

  1. 01

    Code on Wages

    Minimum wage, payment of wages, bonus, equal remuneration

    Minimum wage, payment of wages, bonus and equal remuneration. This feeds straight into how EZER calculates every payslip.

  2. 02

    Industrial Relations Code

    Standing orders, retrenchment, dispute resolution

    Standing orders, retrenchment and dispute resolution, tracked at the establishment level for every branch and factory.

  3. 03

    Code on Social Security

    PF, ESIC, gratuity, maternity benefit

    PF, ESIC, gratuity and maternity benefit. Registers and contributions generate automatically from attendance and payroll.

  4. 04

    OSH & Working Conditions Code

    Working hours, shift limits, welfare facilities

    Working hours, shift limits and welfare facilities, configured per establishment type, from an office to a factory floor.

The four Labour Codes have been in effect since November 2025, and state-level rules are still being notified in phases. EZER tracks each notification as it lands, so your registers keep reflecting the rules that apply to you now rather than the ones that applied last year.

Rules apply differently to an IT office, a factory, a warehouse and a BFSI branch. EZER’s compliance engine is configured per industry and per establishment type. There is no single generic template stretched across the whole company.

One operation, however many companies

Shaped likeyour group,not one office.

  • One employee master across the group, so a transfer between entities is a transfer and not a re-hire.
  • State-wise PT, LWF and leave entitlement applied by the location the employee actually works at.
  • Payroll run per entity, reporting consolidated across the group.
  • Unlimited entities and locations on the same subscription, because charging per entity punishes exactly the companies this is built for.
Ahmedabad · PlantDelhi NCR · BranchChennai · DepotKolkata · WarehouseMumbai · Head office

Illustrative · sample locations

28 states, 8 union territories. Each paid by its own rules.

Professional Tax, Labour Welfare Fund, minimum wages and leave entitlement follow the state the employee actually works in, not where the head office sits, for any number of locations. A transfer from Pune to Bengaluru changes the rules the next payroll applies, without anyone setting them again.

  • PTSlab applied by work location
  • LWFMonthly, half-yearly or annual, per state
  • LeaveEntitlement per state Shops & Establishments rules
  • Min. wageChecked by state, skill and zone
  • HolidaysLocation-wise holiday calendars

One login. Everyone sees exactly what their role needs.

Aadhaar and bank details stay masked except for the roles that need them, on every screen and in every export.

CFO & Leadership ViewLeadership
Consolidated compliance and cost visibility across every company and branch, without wading into transaction-level HR data. Filing status, headcount cost and risk flags, on one screen.
HR Head
Full access, all companies.
Payroll Manager
Payroll & statutory, all branches.
Branch HR Executive
Own branch only.
IT / Admin Manager
Onboarding & assets only.
Finance Executive
Cost reports, masked PII.

Built for India

What EZER does for each statutory head

Under the law as it now stands: the four Labour Codes, in force since 21 November 2025, and the Income-tax Act, 2025, from 1 April 2026. Each head below is handled inside the run, against configuration that reflects your registrations.

  • EPF

    Code on Social Security, 2020, Chapter III, with the EPF, EPS and EDLI Schemes, 2026

    Calculates employee and employer contributions, splits the employer share between EPS and EPF, applies the wage ceiling for eligible members, adds admin and EDLI charges, and produces ECR-ready output.

    Wages applied12% employee · 12% employer, split EPS/EPF · ₹25,000 wage ceiling from 17 Sept 2026 (₹15,000 before) · wages as defined in section 2(88), with the 50% rule

  • ESIC

    Code on Social Security, 2020, Chapter IV (replaces the ESI Act, 1948)

    Applies the wage ceiling, keeps employees who cross it mid-contribution-period covered to the end of that period, and produces return-ready output.

    Wages applied0.75% employee · 3.25% employer · ₹21,000 wage ceiling (₹25,000 for persons with disabilities) · wages as defined in section 2(88)

  • PT

    State Professional Tax Acts

    Holds slabs per state, applies them by the employee’s work location, and handles the states with a different rate in a specific month.

    Wages appliedGross salary against each state’s slabs · ₹2,500 per year constitutional maximum

  • LWF

    State Labour Welfare Fund Acts

    Applies the contribution at the rate and frequency the relevant state requires, which may be monthly, half-yearly or annual, per registration.

    Wages appliedEach state’s rate, wage band and frequency

  • Minimum wages

    Code on Wages, 2019, Chapter II (replaces the Minimum Wages Act, 1948)

    The pan-India minimum wages tracker: checks every employee’s pay against the notified minimum wage for their state, skill category and zone, and flags any shortfall before the run is released.

    Wages appliedFloor wage and the rates notified by each appropriate Government, by state, skill and zone

  • TDS

    Income-tax Act, 2025, section 392 (salary), with the Income-tax Rules, 2026

    Runs the new regime by default and the old one where an employee opts out, takes declarations and verified proofs, projects tax across the rest of the tax year, and issues Form 130 (formerly Form 16).

    Wages appliedTaxable salary · new regime by default, old by opt-out · monthly projection · Form 130

  • NPS

    Employer contribution under the Income-tax Act, 2025

    Handles the employer NPS contribution inside the salary structure, with the correct treatment in the tax computation for each regime.

    Wages appliedEmployer contribution, configurable per structure · up to 14% of salary in the new regime

  • Gratuity

    Code on Social Security, 2020, Chapter V (replaces the Payment of Gratuity Act, 1972)

    Calculates the entitlement on exit against completed service, including pro-rata gratuity for fixed-term employees, and includes it in the full & final settlement.

    Wages applied15 days’ wages per completed year · 5 years’ service (fixed-term: pro rata, without the 5-year condition) · wages as defined in section 2(88)

  • Bonus

    Code on Wages, 2019, Chapter IV (replaces the Payment of Bonus Act, 1965)

    Determines eligibility and calculates the statutory bonus against the two ceilings the Code now sets.

    Wages applied8.33% minimum to 20% maximum · eligible up to ₹21,000 a month · calculated on ₹7,000 or the minimum wage, whichever is higher

  • S&E

    State Shops & Establishments Acts

    Drives statutory leave entitlement and holiday rules by the state each location sits in.

    Wages appliedState-wise leave and holiday entitlements

Rates, ceilings and slabs are configuration, not code, so a statutory change is applied without waiting for a product release.

Compliance questions

The ones a knowledgeable buyer asks

Is EZER up to date with the 2026 changes: the ₹25,000 EPF ceiling and the Income-tax Act, 2025?

Yes. Rules are held as configuration with the date they take effect, so the EPF ceiling is ₹15,000 for months before 17 September 2026 and ₹25,000 after it, and salary TDS runs under section 392 of the Income-tax Act, 2025 with the new regime as the default and Form 130 at the end of the tax year. The bonus ceilings the Code on Wages set in August 2026 are applied the same way.

Which states do you cover for Professional Tax and LWF?

Every state that levies them. PT slabs and LWF rates are held per state registration and applied by the location the employee actually works at, not by where the company is headquartered. LWF is the one people get caught by: it is monthly in some states, half-yearly in others and annual elsewhere, and the frequency is configured per registration rather than assumed.

How do you handle an employee who crosses the ESIC ceiling mid-period?

They stay covered to the end of that contribution period, which is what the act requires. It is a small rule and the one most spreadsheet-based payrolls get wrong, because it needs the system to remember a state change rather than re-evaluate eligibility every month.

The labour codes are still being notified. What happens when our state notifies?

Rules are held as configuration per registration, so a notification is applied without waiting for a product release. That is the practical difference between being ready and being told it is on the roadmap. It matters because the codes are being notified by state and by establishment type, in stages, rather than all at once.

Can you show that a deduction was calculated correctly?

Every figure on a payslip opens to show what produced it: the attendance days counted, the salary structure in force that month, the statutory rate and ceiling applied, and the regime or slab used. That trail is the difference between a payroll that is correct and one that can be shown to be correct, which is the only version that survives an inspection or a dispute.

Do you file returns on our behalf?

We produce the filing-ready output against the registration each one belongs to. Filing itself stays with you or your consultant, which is deliberate: the statutory liability is the employer’s and we would rather not sit between you and it.

See EZER on your own data

Bring your registrations to the call

Tell us the states you operate in and the establishment types you hold. We will show you the statutory setup against your own structure rather than a demo company.

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