Startups

The Indian Government has decided to promote the Startup ecosystem with different schemes and benefits to generate employment opportunities in the country. It can sound overwhelming for start-ups to be aware of all the compliance labour laws. It is a natural assumption that any additional compliance-based paperwork can be daunting, as it adds-on additional complex documentation for the already lean startup headcount.

The Government has launched the DIPP registration (Department of Industrial Policy and Promotion)/Startup India Scheme for Startups under the Ministry of Commerce and Industry to self-certify the compliance and labour laws to provide much needed benefits. The Indian government has created a single Shram Suvidha Portal to make reporting inspections and submitting yearly reports for compliance with labour rules easier. With the prime intention of supporting startups, the government devised a strategy for employers to self-certify applicable labour laws to avoid inspections for up to 5 years.

The following Labour Laws are covered under this strategy are :

• The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
• The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948

In 2020, to boost short term liquidity within startups, the Govt slashed provident fund (PF) contributions for startup employers and employees by 2%. To increase the base take home salaries, the employers and employees will now have to contribute 10% instead of the standard 12% of the monthly salaries to EPF. Other initiatives as part of the Pradhan Mantri Garib Kalyan Yojna (PMGKY) include a scheme under which the Government contributes 12% of salary each on behalf of both employer and employee to EPF will be extended by 3 additional months specifically for June, July and August 2020. You can refer the press release here.

Feel free to contact us to if you would like to discuss further any of the above schemes.

Head to the Labour Compliance page to read more about the Laws.

Corporate Personnel Services LLP has been providing labour consulting services for more than 20 years. Constanty being aware of the Labor Laws and striving to maintain it for our clients throughout those years has been our major goal. We are recognized as one of the most respected consulting firms in the field with clients throughout India. Providing the best service to all our clients and ensuring that they are not robbed of the latest labor law changes is always our top priority.

We always strive to provide firm and evident information on the labor compliance laws, and other payroll processing and business management services to all the businesses seeking our assistance. We provide accurate information and formulate reliable strategies, with the wide data research done by trusted team members, providing our valuable clients with the effective methods to implement our strategies and make the most out of our services.