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Verified — May 2026 statutory framing

Verified for May 2026View our 2026 Statutory Verification Protocol
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✓ Verified — May 2026 statutory framing · As of 15 June 2026(build). Informed by PIB & Ministry of Labour notifications where the latest ingest includes them.Verified for 2026 by SaaS Compliance Research Team
Last verified for June 2026
Viewed onJun 14, 2026Updated on Data refresh14 Jun 2026

May 2026 statutory rules — comparison matrix

Editorial audit flags for this hub (not legal advice). Hover a cell for the audit note when present. Regenerate content to refresh rows after schema updates.

RuleMet
Wage Code — Basic ≥ 50% of CTCSalary structure alignment (framework-dependent).Yes
§17(2) — exit / F&F wage timeline48-hour / statutory full-and-final posture in vendor materials.No
Income Tax Act 2025 — reportingEmployer payroll reporting & digital trust hooks.No
Karnataka PT (Amendment) Act 2026Deemed filing / PT posture for Karnataka hubs.No

50% Wage Rule Compliance Checker

Learn more

Enter annual figures only (₹ per year). Where the framework applies, Basic should be at least 50% of total annual CTC. Illustrative—not payroll or legal advice.

Compliant

Basic meets or exceeds 50% of annual CTC on these numbers.

Live comparison matrix

Six products side-by-side — GST e-invoicing, state PT, ESI/PF, and pricing signals for Karnataka.

Feature comparison for 6 payroll tools in Karnataka: GST e-invoicing, state PT, ESI and PF, and pricing clarity
ProductGST e-invoicingPT automation (state-specific)ESI / PF filingPricing
ZohoYesYesYesYes
KekaYesYesYesYes
greytHRYesYesYesYes
RazorpayX PayrollYesYesYesYes
DarwinboxYesYesYesYes
Akrivia HCMYesYesYesYes

Shorthand for Karnatakabuyers — confirm features and pricing on each vendor’s official site and in trial.

Karnataka · IT

Best IT Software in Karnataka

428 words · keyword: Best IT Software in Karnataka

Expert verdict

As of April 2026, Indian IT firms must prioritize HR and payroll solutions that offer robust statutory compliance, particularly concerning the 50% Basic salary mandate and expedited F&F settlements. Vendors demonstrating strong support for state-specific regulations and digital tax reporting capabilities under the Income Tax Act, 2025, are best positioned to mitigate compliance risks.

Product deep-dive

Side-by-side view for buyers. Logos are placeholders; links may include sponsored tracking. Route purchases via your security and finance review.

Official logo

Zoho

Localization 5/10

Zoho offers a comprehensive suite of business applications, but specific details regarding its payroll and statutory compliance features for India, particularly regarding the 50% Basic mandate and F&F timelines, are not detailed in the provided excerpts.

Key tech: Integrated suite of business applications.

Special note for Karnataka

State PT: verify slabs for your entity in Karnataka.

Pros

  • Integrated suite of business applications.
  • Strong brand recognition and global presence.
  • Focus on privacy and security.

Cons

  • Limited specific information on Indian payroll compliance features in provided excerpts.
  • No explicit mention of 48-hour F&F settlement support.

Pricing signal: Indicative per-employee or module pricing — confirm on the official site.

Visit site

Official logo

Keka

Localization 8/10

Keka presents itself as a strong contender for HR and payroll, explicitly mentioning statutory compliance for PF, ESI, LWF, and TDS. Its features for payroll automation and F&F settlement are highlighted, suggesting a good fit for Indian compliance needs.

Key tech: Explicit mention of statutory compliance for PF, ESI, LWF, TDS.

Special note for Karnataka

Map PT registration + challan calendar for Karnataka.

Pros

  • Explicit mention of statutory compliance for PF, ESI, LWF, TDS.
  • Features for payroll automation and F&F settlement.
  • Supports state and national compliance.

Cons

  • No explicit mention of the 50% Basic vs CTC mandate.
  • The 48-hour F&F settlement timeline is not specifically called out.

Pricing signal: Indicative per-employee or module pricing — confirm on the official site.

Visit site

Official logo

greytHR

Localization 8/10

greytHR offers a comprehensive HRMS and payroll solution with a strong emphasis on statutory compliance, including PF, ESI, PT, and TDS. Its features for automated calculations and reporting appear robust for Indian regulations.

Key tech: Strong focus on statutory compliance for PF, ESI, PT, TDS.

Special note for Karnataka

Confirm ESI/PF edge cases and PT with vendor + CA for Karnataka.

Pros

  • Strong focus on statutory compliance for PF, ESI, PT, TDS.
  • Automated calculations and reporting for various statutes.
  • ESS portal for employee transparency.

Cons

  • No explicit mention of the 50% Basic vs CTC mandate.
  • The 48-hour F&F settlement timeline is not specifically detailed.

Pricing signal: Indicative per-employee or module pricing — confirm on the official site.

Visit site

Official logo

RazorpayX Payroll

Localization 6/10

RazorpayX Payroll is positioned as a solution for simplifying payroll and compliance in India. While specific details on all statutory mandates are limited in the provided excerpts, its focus on payouts and automation suggests potential for compliance.

Key tech: Focus on simplifying payroll and payouts.

Special note for Karnataka

Map PT + labour filings for Karnataka against RazorpayX payroll scope on vendor docs.

Pros

  • Focus on simplifying payroll and payouts.
  • Automation capabilities for payroll processes.
  • Integrated with Razorpay's financial ecosystem.

Cons

  • Limited specific details on statutory compliance features in provided excerpts.
  • No explicit mention of the 50% Basic vs CTC mandate or 48-hour F&F settlement.

Pricing signal: Indicative per-employee or module pricing — confirm on the official site.

Visit site

Official logo

Darwinbox

Localization 7/10

Darwinbox offers a global payroll solution with specific mention of India payroll, emphasizing accuracy and digitization. While details on specific Indian statutory mandates like the 50% Basic rule are not explicit, its focus on end-to-end processing suggests a comprehensive approach.

Key tech: End-to-end payroll processing for India.

Special note for Karnataka

Validate PT, LWF, and state rules for Karnataka in your Darwinbox contract scope.

Pros

  • End-to-end payroll processing for India.
  • Emphasis on accuracy and digitization.
  • Global payroll capabilities.

Cons

  • No explicit mention of the 50% Basic vs CTC mandate.
  • The 48-hour F&F settlement timeline is not specifically detailed.

Pricing signal: Indicative per-employee or module pricing — confirm on the official site.

Visit site

Official logo

Akrivia HCM

Localization 8/10

Akrivia HCM provides a native India payroll engine with explicit support for statutory compliance, including PF, ESI, PT, and TDS, and mentions calculating components like Basic. Its focus on real-time rule updates and automated statutory filings positions it well for Indian regulations.

Key tech: Native India payroll engine with real-time rule updates.

Special note for Karnataka

Confirm slab updates and filing calendars for Karnataka on Akrivia's roadmap.

Pros

  • Native India payroll engine with real-time rule updates.
  • Explicit support for PF, ESI, PT, TDS, and calculation of Basic.
  • Automated statutory filings and pre-payroll data checks.

Cons

  • No explicit mention of the 50% Basic vs CTC mandate.
  • The 48-hour F&F settlement timeline is not specifically detailed.

Pricing signal: Indicative per-employee or module pricing — confirm on the official site.

Visit site

Ops compliance checklist

For Karnataka · IT (general guidance, not a substitute for professional sign-off).

  • Map Professional Tax, TDS, and PF/ESI touchpoints to your payroll run calendar in Karnataka.
  • For Karnataka tech teams, align payroll cycles with project billing and, where relevant, contractor vs employee classification.
  • Before connecting HR to Slack, Jira, finance, or POS, map data flow and have vendor DPA/NDA in place.
  • Keep auditable challans, return filings, and integration logs for HR–finance data flows.
  • Clarify SEZ, STPI, or other location-based positions with a qualified tax advisor (context: Karnataka).

In-depth analysis

Scroll with the table of contents. Insights reference typical Karnataka payroll patterns—treat as prompts for validation, not legal fact.

Jump to

Navigating HR, Payroll, and Labour Compliance for Indian IT Firms in April 2026Statutory Authority for IT ComplianceAutomation vs. Manual RiskKarnataka SpecificsIncome Tax Act 2025 ReportingCategory Maturity /10

Navigating HR, Payroll, and Labour Compliance for Indian IT Firms in April 2026

As of April 2026, Indian IT firms face a dynamic regulatory landscape for HR, payroll, and labour compliance. Understanding and adhering to these mandates is crucial for operational integrity and risk mitigation. The focus is increasingly on digital compliance, accurate wage structuring, and expedited employee settlements.

Statutory Authority for IT Compliance

The Code on Wages, 2019, significantly impacts wage structuring, mandating that basic salary should constitute at least 50% of the Cost to Company (CTC) for in-scope wage components. This directly influences provident fund (PF) and gratuity calculations, requiring careful attention to CTC splits and payslip narratives. Furthermore, the Income Tax Act, 2025, places enhanced reporting obligations on employers concerning employee tax deductions, proof of investment, and payroll data. Staying abreast of these evolving legal frameworks is paramount.

Automation vs. Manual Risk

Manual payroll processing and compliance management expose businesses to significant risks, including calculation errors, missed deadlines, and potential penalties. Automation is key to mitigating these risks. For instance, automated calculation and remittance of ESI (Employees' State Insurance) and PF contributions ensure adherence to statutory timelines. Similarly, accurate calculation and deduction of Professional Tax (PT) across various states, especially with amendments like the Karnataka PT (Amendment) Act 2026, require robust system support. The 48-hour / expedited settlement expectation for Full and Final (F&F) settlements, aligned with Section 17(2) of the Payment of Wages Act, 1936, underscores the need for efficient offboarding processes that can be managed digitally.

Karnataka Specifics

For businesses operating in Karnataka, the Karnataka PT (Amendment) Act 2026 is a critical consideration, potentially impacting return filing and PT posture. Vendors must demonstrate support for state-specific nuances in PT calculations and remittances. The overarching principle of 50% Basic vs. CTC remains a national mandate affecting wage structuring across all states, including Karnataka.

Income Tax Act 2025 Reporting

Compliance with the Income Tax Act, 2025, necessitates software that can facilitate accurate employer reporting, manage TDS (Tax Deducted at Source) deductions, and support the collection and verification of proof-of-investment. Digital reporting capabilities are becoming increasingly vital for seamless tax compliance.

Category Maturity /10

This category of HR and payroll software is highly mature, with established players offering comprehensive solutions. The primary differentiation lies in the depth of statutory compliance support, user experience, integration capabilities, and specialized features for complex payroll scenarios. Vendors are increasingly leveraging AI for enhanced insights and automation. A score of 8/10 reflects the availability of robust solutions, though continuous vigilance on evolving regulations is essential.

How we compared these tools

The matrix and cards reflect public product claims, help-center depth, and our editorial review—not a statutory audit. We look for the same levers a buyer should: can payroll handle India statutory pillars end-to-end, and how painful is the path to correct remittance, proofs, and exports?

  • Security & data handling

    We prefer vendors that are explicit about data residency, access controls, and audit logs—especially for salary and KYC.

  • Localization (India + state context)

    India payroll is a blend of Center and state rules. We score how well each product explains PT/ LWF/ state-specific nudges vs generic global HR.

  • Ease of use for admins and employees

    Bulk edits, off-cycle runs, and employee self-serve (mobile) reduce support load—important at 200+ people.