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New Wage Code Impact on IT

City Snap

Mitigate Gratuity & EPF Liability for GICs & ITES in India

IT/ITES salary structures face the New Wage Code's wage rule. EPFDesk offers specialized compliance for EPF, ESIC, UAN Exit, and audit defense in Bangalore, Pune, & Hyderabad.

EPFDesk: Mitigate the New Wage Code Gratuity Liability in India's IT/ITES Sector

For IT and Global Capability Centers (GICs), payroll compliance is a matter of financial risk management, not just clerical administration. The typical IT salary structure (low basic, high allowances) is now a ticking time bomb under the New Wage Code (NWC).

The Problem

The NWC mandates that basic wage (for PF, Gratuity, etc.) must be at least of the total remuneration. For non-compliant IT structures, the retrospective liability for underpaid Gratuity and EPF can trigger huge unbudgeted outflows.

The Threat

High attrition in the IT sector leads to increased employee grievances (via EPFiGMS), which are the number one trigger for mandatory EPF audits, resulting in retrospective demands and penalties

The Solution

Specialized compliance and payroll restructuring that pre-emptively aligns your company with the NWC definition of 'wages' before the notice arrives.

The Physiology of IT Payroll: Why EPFDesk Specializes in High-Volume, High-Attrition Compliance

We understand the unique operational challenges of the IT/ITES and BPO industries in technology hubs like Bengaluru, Hyderabad, Pune, Chennai, and Noida.

High Attrition

Accurate UAN Exit Marking & Digital Final Settlement Compliance to prevent post-exit employee grievances (EPFiGMS).

Variable Pay & Bonuses

Expert calculation of EPF contributions on variable pay and incentives, ensuring alignment with the unified NWC definition of 'Wages.'

NWC Gratuity Risk

Payroll simulation and restructuring to ensure basic wage meets the threshold, mitigating the risk of retrospective Gratuity liability (especially for FTEs).

EPFDesk End-to-End Compliance Shield: Your Deliverables

1

EPF / PF Compliance

Monthly ECR Filing and Challan generation. UAN Generation, KYC, and Error Rectification. 100% accuracy in contribution calculation.

2

ESIC Compliance

Monthly ESIC Challan generation. IP Creation and maintenance for employees earning up to ₹21,000 (critical for IT Support & Ops staff).

3

Audit & Legal Defense

Full documentation and legal defense against EPF inquiries. Mitigation of penalties including (Interest) and (Damages).

Frequently Asked Questions

The biggest risk is the potential for an unbudgeted, retrospective liability due to a sudden increase in the Gratuity provision. If your basic wage is below 50% of total remuneration, the liability increases significantly, particularly with the new 1-year gratuity rule for Fixed Term Employees (FTEs).

The most effective defense is 100% accurate and timely UAN Exit Marking upon separation. Unmarked exits are the primary source of 7A triggers via employee complaints to the EPFO portal.

We provide pan-India compliance services, specializing in the high-volume requirements of the major tech corridors: Bengaluru, Hyderabad, Pune, Chennai, Noida, and Mumbai.