The Global Payroll

India’s GST Overhaul: Simplified Structure, Consumer Relief & Sin‑Tax Surge 1. Executive Summary The GST Council has carried out the most significant indirect tax reform in nearly a decade. The previous four slab system (5%, 12%, 18%, 28%) has been rationalized into a cleaner structure: 5% “merit” rate – for everyday essentials 18% standard ratefor general goods and services 40% “demerit/sin” rate – for luxury, harmful, and sin goods Additionally, individual life and health insurance policies are now GST-exempt. This reform aims to simplify compliance, reduce prices for consumers, boost demand (especially ahead of festivals), and strategically discourage consumption of harmful goods. 2. Fiscal Impact & Implementation While the government anticipates a revenue loss of ₹48,000 crore overall, this is considered manageable relative to the broader economic benefits like demand stimulation and reduced inflation pressure (estimated up to 1.1 percentage points). Effective Date: September 22, 2025 (the first day of Navratri), except for some sin goods where the shift may follow later, based on compensation cess obligations. 3. Industry Wise Tax Impact Table Industry / Category Previous GST Rate(s) New GST Rate Impact Summary Daily essentials (soap, shampoo, toothpaste, hair oil, utensils, feeding bottles, diapers, namkeen, chocolates, noodles) 12–18% 5% Significant cost reduction increases affordability and demand. Food staples (UHT milk, paneer, Indian breads like roti/paratha) 5% or 12% Nil Lifeline relief for households. Healthcare & drugs (life‑saving medicines, medical devices, spectacles, diagnostics) 12–18% 5% or Nil Makes critical healthcare and equipment more accessible. Insurance (individual life & health) 18% Nil Major affordability gain and coverage expansion. Education materials (books, pencils, exercise notebooks, maps) 12% Nil Relief for educational spending. Agriculture & farming equipment (tractors, drip systems, seeds, handicrafts, renewable equipment) 12–18% 5% Boosts these sectors through reduced taxation. Construction & building (cement) 28% 18% Moderate tax relief for the sector. Automobile & auto parts (small cars ≤350 cc, bikes ≤350 cc, three-wheelers, buses, ambulances, small trucks, all auto parts) 28% 18% Reduced tax to boost automotive and accessory demand. Electronics & appliances (ACs, TVs >32”, dishwashers, monitors, projectors) 28% 18% Significant relief for consumers. Luxury / sin goods (pan masala, cigarettes, gutkha, chews, sugary & caffeinated drinks, luxury cars, motorcycles >350 cc, yachts, personal aircraft, gambling) 28% or with Compensation Cess 40% Disincentive pricing for harmful/luxury items; conversion to GST‑only base enhances tax simplicity. 4. Strategic Implications for Businesses Consumer goods companies (FMCG, dairy, toiletries) may experience volume growth due to lower GST. Automotive and appliance manufacturers could see demand stimulation ahead of Diwali. Healthcare providers, educators, and insurers gain through cost reductions and extended coverage. Luxury segments and sin goods producers will face reduced demand due to steep taxation. Agri equipment and rural-focused manufacturers may benefit from lower tax burden stimulating rural purchasing. 5. Communication Tips for Businesses Highlight cost savings in marketing (e.g., “Now just 5% GST on XYZ product”). Reassess pricing strategies immediately to remain competitive. Prepare for demand boost The festive period—optimize inventory and logistics. Luxury goods producers might consider premium positioning or repositioning due to reduced affordability. Agritech and green energy suppliers can push outreach emphasizing lower taxation. Conclusion The GST reform is a milestone—simplifying the tax structure, cutting costs for millions, and encouraging healthier consumption patterns while maintaining revenue balance. It’s a win for compliance, consumers, and businesses ready to realign with this new landscape.

In today’s hyper-connected global economy, expansion isn’t a luxury—it’s a necessity. Ambitious companies no longer confine themselves to borders. They move fast, hire faster, and scale operations across time zones. But this global ambition hits a wall when compliance, payroll intricacies, local labour laws, and legal liabilities start piling up. That’s where the right Professional Employer Organisation (PEO) becomes not just helpful, but mission-critical. Let’s be clear—not all PEOs are built equal. The Cost of Choosing the Wrong PEO The global employment landscape is a minefield. A poorly-structured employment model can expose your business to: A low-cost, cookie-cutter PEO solution might promise the moon—but they rarely deliver it when it matters. And when things go wrong in a foreign jurisdiction, you’ll wish you had partnered with a firm that understands the nuances of your industry, your business model, and your target geography. What the Best PEOs Actually Do Differently Top-tier PEOs don’t just “hire and pay” on your behalf. They operate like stealth HR-command centres, empowering you to: They act as Employer of Record (EOR) partners, enabling your global workforce to function like an extension of your home team—with zero compromise on legal, financial, or operational control. You Deserve a Partner Who Understands the Stakes A true PEO partner is not just a service provider. They are a strategic enabler. You don’t need a vendor who simply processes payroll—you need one who anticipates cross-border compliance risks, ensures flawless local onboarding, and navigates jurisdictional red tape like second nature. Many fast-growth companies working across the US, Europe, India, and APAC have already discovered the advantage of partnering with agile, execution-driven EOR providers that don’t hide behind generic service lines. These firms work quietly in the background, powering teams in over 40+ countries, often going unnoticed—and that’s exactly how it should be. Because in global business, silence is efficiency. In Closing If your global workforce is your competitive edge, then your PEO is the edge on that edge. Choose one that doesn’t just keep you compliant—but one that helps you win. When expansion can’t wait, compliance can’t fail, and excellence can’t be compromised—you’ll know exactly who to call.

Date Day Holiday 1st Jan Wednesday New Year’s Day 6th Jan Monday Guru Govind Singh Jayanti 14th Jan Tuesday Pongal, Makar Sankranti, Hazarat Ali’s Birthday 26th Jan Sunday Republic Day (Gazetted Holiday) 2nd Feb Sunday Vasant Panchami 12th Feb Wednesday Guru Ravidas Jayanti 19th Feb Wednesday Shivaji Jayanti 26th Feb Wednesday Maha Shivaratri 13th Mar Thursday Holika Dahana 14th Mar Friday Holi, Dolyatra (Gazetted) 28th Mar Friday Jamat Ul-Vida 30th Mar Sunday Chaitra Sukhladi, Ugadi, Gudi Padwa 31st Mar Monday Ramzan Id/Eid-ul-Fitr 6th Apr Sunday Rama Navami 10th Apr Thursday Mahavir Jayanti 18th Apr Friday Good Friday 12th May Monday Buddha Purnima/Vesak 7th Jun Saturday Bakrid/Eid ul-Adha 6th Jul Sunday Muharram/Ashura 9th Aug Saturday Raksha Bandhan (Rakhi) 15th Aug Friday Independence Day, Janmashtami (Smarta), Parsi New Year (Gazetted Holiday) 16th Aug Saturday Janmashtami 27th Aug Wednesday Ganesh Chaturthi/Vinayaka Chaturthi 5th Sep Friday Milad un-Nabi/Id-e-Milad, Onam 29th Sep Monday Maha Saptami 30th Sep Tuesday Maha Ashtami 1st Oct Wednesday Maha Navami 2nd Oct Thursday Mahatma Gandhi Jayanti, Dussehra (Gazetted Holidays) 7th Oct Tuesday Maharishi Valmiki Jayanti 10th Oct Friday Karaka Chaturthi (Karva Chauth) 20th Oct Monday Naraka Chaturdasi, Diwali/Deepavali 22nd Oct Wednesday Govardhan Puja 23rd Oct Thursday Bhai Duj 5th Nov Wednesday Guru Nanak Jayanti 24th Nov Monday Guru Tegh Bahadur’s Martyrdom Day 24th Dec Wednesday Christmas Eve 25th Dec Thursday Christmas

As #Multinationalcompanies (#MNC) increasingly rely on #EmployerofRecord (#EOR) solutions to streamline international workforce expansion, compliance with localized labor statutes becomes a strategic necessity. India’s regulatory framework, particularly in cities like #Delhi, includes distinct rules regarding employee leave and holiday entitlements. For EORs managing employment responsibilities on behalf of MNCs, it is crucial to align with local legal standards to ensure smooth operations and risk mitigation. 1. Statutory Leave Entitlements Under Indian Labor Law #Indianlaborlaw prescribes several categories of leave, with specifics often varying by state. In Delhi, these are primarily governed by the Delhi Shops and Establishments Act, in addition to applicable central legislation. EOR providers must incorporate these standards into their employment policies to ensure lawful engagement. a. #EarnedLeave (EL) / #PrivilegedLeave (PL) Employees earn this leave based on their duration of service—commonly accruing at a rate between 1.25 and 1.75 days per month. In Delhi, workers are entitled to a minimum of 15 days of earned leave per year. Unused days can typically be carried over (up to a limit of 45 days) and may be paid out upon termination, depending on company policy. b. Casual Leave (CL) Casual Leave is intended for short and unplanned personal matters. Most organizations in Delhi offer between 7 to 12 days of this leave annually. These days are not carried forward to the next year and are non-encashable. c. Sick Leave (SL) Under Delhi’s employment rules, workers are entitled to 12 days of paid sick leave annually. Employers may request a medical certificate for absences that extend beyond a couple of consecutive days. d. Maternity Leave The #MaternityBenefit (Amendment) Act, 2017 grants 26 weeks of paid maternity leave to eligible female employees for their first two deliveries. For subsequent births, the entitlement is 12 weeks. Provisions also exist for paid leave in case of miscarriage (6 weeks) and for adopting mothers (12 weeks under certain conditions). EORs are responsible for ensuring these benefits are provided in accordance with applicable laws. e. Paternity Leave While there is no statutory #paternityleave in India, many employers in Delhi voluntarily offer 5 to 15 days of paid leave to new fathers. EORs can support clients in implementing such benefits as part of inclusive HR practices. f. #SpecialLeave Categories Some companies may offer discretionary leave such as for marriage, bereavement, or education. These are usually governed by internal HR policies or individual employment contracts. 2. Public Holiday Structure in Delhi Delhi observes a mix of national, gazetted, and religious holidays throughout the year. Employers in India offer 10 to 14 public holidays depending upon the policies and religious observances and are expected to publish an annual list of recognized holidays. Key statutory holidays include: Organizations may offer #substituteholidays in #india to accommodate religious and cultural diversity, reinforcing their commitment to workforce inclusion.

Aspect Employee on Record (EOR) Payroll Consultant Payroll Employment Status An individual engaged under an Employer of Record (EOR) arrangement is classified as a full-time employee in terms of role and responsibilities but legally employed by a third-party Employer of Record (EOR). The EOR handles all employment responsibilities, while the employee works exclusively for the client company. The consultant operates as an independent contractor, with a contractual relationship rather than an employment agreement. There is no direct employer-employee relationship. Payroll Processing The EOR manages end-to-end payroll, ensuring salaries are processed accurately and in compliance with local labor laws. The company outsources payroll complexity, making it a hassle-free arrangement. Consultants submit invoices based on pre-agreed terms (hourly, milestone-based, or project fees). Payments are made without traditional payroll deductions, simplifying the employer’s cost structure. Taxation & Compliance The EOR is responsible for withholding taxes, social security contributions, and other statutory deductions, ensuring seamless compliance with local labor regulations. Consultants self-manage their taxes, handling their own filings and there is no requirement to deduct social security contributions and other compliance related to labour laws. Taxation Structure Tax is deducted as per individual income tax slabs, just like a regular salaried employee. This means higher-income employees may fall under higher tax brackets, impacting their in-hand salary. A flat 10% Tax Deducted at Source (TDS) is applicable on consultant payments (as per Section 194J of the Income Tax Act in India). Benefits & Perks Employees under an EOR receive standard employment benefits, including health insurance, paid leave, provident fund, and even stock options where applicable. The EOR ensures these perks comply with labor laws. Consultants do not receive employment benefits. Any additional perks (e.g., health coverage, travel reimbursements) must be contractually agreed upon and may come at a higher negotiated rate. Work Control & Integration EOR employees function as internal staff, follow company policies, use internal resources, and are subject to performance reviews. The company has direct oversight over their work. Consultants work with the company while maintaining some independence in their operations. The company sets project objectives and timelines but does not control their working hours or require exclusive engagement. Consultants have the flexibility to manage their work while meeting the company’s expectations. Engagement Model Typically structured for long-term, strategic hires, aligning with the company’s workforce planning and expansion goals. Suitable for businesses needing dedicated, full-time staff without legal setup hassles. Best suited for short-term or project-based roles, where expertise is needed temporarily. Consultants are often brought in for highly specialized work without long-term obligations. Exit Process Employees under an EOR follow a structured offboarding process, including notice periods, severance (where applicable), and exit documentation. Ensures a smooth transition with minimal risk. Exits are simpler and faster, as contracts typically define clear termination clauses. Companies can disengage consultants making it a flexible staffing option. Ideal Use Case Perfect for companies expanding globally without setting up a legal entity, or those looking to hire full-time employees while outsourcing HR and compliance burdens. Ideal for businesses that require specialized skills on a flexible, cost-efficient basis, particularly for project-based, advisory, or interim roles without long-term employment commitments. INDIA Delhi Office – A-19 , Ground Floor , FIEE Complex, Okhla Industrial Area Phase – 2, New Delhi – 110020, India USA Office – 30 N Gould St Ste R, Sheridan, Wyoming 82801, United States W: https://theglobalpayroll.com  

Navigating Payroll Compliance in East Asia: A Unified Solution for Global Businesses Expanding business operations into East Asia presents vast opportunities, but it also brings significant payroll compliance challenges. Countries such as China, Japan, South Korea, and Singapore have intricate labor laws, tax regulations, and reporting requirements that demand expert handling. Companies operating in these regions must navigate these complexities efficiently to avoid legal risks and ensure seamless payroll processing. The Complexity of Payroll Compliance in East Asia Each country in East Asia has its own unique payroll structure and statutory obligations. Failing to comply with these regulations can result in severe penalties, legal disputes, and operational disruptions. Below are key payroll challenges in some major East Asian economies: China Japan South Korea Singapore Why Payroll Compliance Matters Non-compliance with payroll regulations in East Asia can lead to: For companies expanding into East Asia, it is imperative to have a compliant, efficient, and well-structured payroll system to mitigate risks and ensure smooth operations. The Solution: Expert Payroll Management Across East Asia Businesses looking to establish themselves in East Asia need a centralized payroll partner to handle country-specific compliance. A dedicated payroll outsourcing provider ensures: How Our Payroll Expertise Helps Businesses in East Asia At Innothrive Solutions Private Limited, we provide tailored payroll solutions for companies operating in East Asia, offering: With our expertise, businesses can eliminate payroll complexities, reduce administrative burden, and achieve 100% compliance in East Asia.

In today’s interconnected world, businesses are increasingly seeking talent beyond their borders to harness diverse skill sets, reduce operational costs, and expand into new markets. However, navigating the complexities of Indian labour laws, tax regulations, and compliance requirements can pose significant challenges for foreign companies. This is where Employer of Record (EOR) services provide an ideal solution. What is an Employer of Record (EOR)? An Employer of Record (EOR) is a third-party entity that legally employs workers on behalf of another organization. While the client company oversees the employees’ daily work and performance, the EOR manages the administrative and legal responsibilities, including compliance with local labour laws. Effectively, the EOR becomes the official employer in India, ensuring all employment-related requirements are met seamlessly. Why Choose an EOR? Key Advantages For international companies looking to hire in India without establishing a formal legal entity, EOR services offer a streamlined, cost-effective solution. Here’s what makes them indispensable: Simplified Compliance with Indian Labour Laws India’s labour framework combines central and state-level regulations covering areas such as: Handling these regulatory requirements independently can be overwhelming. A proficient EOR partner ensures comprehensive compliance, shielding your business from penalties and legal challenges. Selecting the Best EOR Provider Choosing the right EOR partner is pivotal to a successful hiring strategy in India. Consider the following factors: Peace of Mind with EOR Services With an EOR managing payroll, tax filings, and compliance, you can focus on scaling your business without worrying about operational intricacies. This “peace of mind” model ensures that your Indian workforce is managed efficiently and lawfully. Why Partner with “The Global Pay”? At The Global Pay, we specialize in offering tailored EOR services that cater to the Indian market’s unique requirements. Here’s why we stand out: Your Gateway to Hiring in India India is a vibrant hub of talent and growth opportunities. By partnering with The Global Pay, you can leverage this potential without the complexities of establishing a local entity. Let us simplify your entry into the Indian market while ensuring absolute compliance with its diverse labour laws. Interested in exploring how EOR services can elevate your business? Contact us today to start your journey towards hassle-free global workforce management.

Introduction The Contract Labour Act, 1970, is used to employ laborers through a contract for a certain period. It is the responsibility of the contractor to hire, supervise and remunerate the laborers. The core objective of this act was to prevent the exploitation of contract workers and also ensure proper and better working conditions. This Act also regulates the employment of contract labour in various industries in India. Contract workers are hired through a contractor, often on a daily wage basis, for specific periods. The Contract labour Act aims to address the poor conditions and job insecurity that contract workers often face, ensuring they are treated fairly and have basic rights at the workplace. Applicability of the Act Non-Applicability of the Act Essential Registration/Licensing Provisions of the Act Key Objectives of the Act Conclusion: The Contract labour law plays a crucial role in safeguarding the rights and welfare of contract workers in India. While the Act provides a comprehensive framework for the regulation and abolition of contract labour, ongoing amendments and state-specific modifications continue to shape its implementation. Employers and contractors must stay informed about these developments to ensure compliance and uphold the rights of contract workers.