Employee benefits in India experienced many regulatory shifts in 2019 that impact the benefits employers operating in India must offer. In light of this, Prudent created this report for employers to help them better understand these rules and their implications.
Among other topics inside the report employers will learn more about India’s:
- Increase in the Standard Flat Tax Reduction – The standard flat deduction on income, introduced in the Finance Act 2018, rose from INR 40,000 for fiscal year 2018-19 to INR 50,000 for financial year 2019-20. This is for all salaried employees effective from financial year 2018-19.
- Changes to the Provident Fund – The Supreme Court issued a judgement on 28th February 2019 mandating that all allowances not part of special incentive or production bonus will form part of basic wages. This in turn subjects them to Provident Fund contribution.
- Progress on ‘The Creche’ Implementation – Asinta reported on this important legislation about childcare in 2018. Prudent follows up with news about the first state to implement the law.