When are minimum wages revised?

Under the Code on Wages (Central) Rules, 2026 the variable DA is revised before 1 April and before 1 October each year. States notify their own rates and dates.

Where do I find current PT and LWF rates?

On the State commercial tax and labour department notifications. See our professional tax slabs by State page for the States we have verified.

Is the consultation really free?

Yes. The consultation and case assessment are free, with no obligation. If you decide to go ahead, there is still nothing to pay upfront: FundRaksha Legal charges 30% only on the amount actually recovered. Court fees, if a matter goes to court, are borne by the client.

Are there any upfront fees?

No. FundRaksha Legal charges a 30% success fee, only on the amount actually recovered. If nothing is recovered, there is no success fee. Court fees, if any, are borne by you and told to you upfront.

How fast does my case start?

Within 24 hours of receiving your complete documents, a dedicated advocate is assigned and the legal notice is sent as an e-notice, followed by registered post.

Do most cases go to court?

No. About 60% of our cases settle before anything is filed, through the notice, negotiation and a payment plan. The rest go to MSME Samadhaan, a Section 138 complaint, a civil suit or arbitration, handled by the same advocate.

Do you work with businesses anywhere in India?

Yes. Notices, filings and follow-ups are handled digitally, and advocates appear wherever the matter is heard. FundRaksha works with suppliers, manufacturers, traders, distributors and service businesses in every state.

FundRaksha HR

New financial year payroll checklist (April)

April payroll sets the pattern for the year. Increments, revised minimum wages, any State changes to professional tax and labour welfare fund, and each employee's tax regime all need to be in place before the first salary of the year.

Try FundRaksha HR WhatsApp us

1,000+

businesses onboarded

₹50 Cr+

invoice value handled

700+

businesses got their money back

60%

of cases settled before court

Short answer

Before April payroll: apply increments and recheck salary structure against the Labour Codes' 50% wage rule (excluded allowances above half of pay count as wages for PF and gratuity); apply the variable DA revision (the Central Rules revise VDA before 1 April and 1 October); update professional tax and labour welfare fund rates from your State's notifications; collect each employee's tax regime choice (default new) and provisional Form No. 124; and start the new ESI contribution period (1 April to 30 September). The new tax-year forms are Form No. 124, 130 and 138.

Checklist

Task	Why
Apply increments with effective dates	Arrears and TDS estimates depend on them
Test basic + DA against 50% of total pay	Excess allowances count as wages for PF and gratuity (Labour Codes)
Apply revised minimum wages and VDA	Central Rules revise VDA before 1 April and 1 October; States notify their own
Update PT slabs and LWF rates	States change them by notification; Karnataka raised its PT threshold to ₹25,000 from 1 April 2025
Collect regime choice and provisional Form 124	TDS from the first salary of the year
Decide ESI coverage for the period	An employee covered on 1 April stays covered to 30 September
Refresh leave policy and holiday list	OSH Code leave and State holiday rules

Worked example: increment and the 50% rule

Sanjay's new monthly pay is ₹60,000: basic ₹24,000, HRA ₹18,000, special allowance ₹18,000. Excluded allowances are ₹36,000, which is ₹6,000 more than half of ₹60,000. Under the Codes' definition of wages, ₹6,000 is added back: PF wages become ₹30,000, capped at ₹25,000 for mandatory PF from 17 September 2026. Restructuring basic to ₹30,000 keeps the payslip aligned with the wages the law sees. Run it through the PF calculator.

Tax set-up for the year

Send employees the regime comparison and a deadline; default to the new regime if they do not reply.
Load opening details for new joiners from Form No. 122 (previous employer).
Check that the payroll uses tax year 2026-27 sections and forms (392, Form No. 124, 130, 138).

FundRaksha HR carries leave balances forward, applies increments with arrears and asks each employee to pick the regime in the app. See the March checklist for the year just closed.

Sources

Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.

Free, no obligation

Free consultation and case assessment

मुफ़्त सलाह, कोई शुल्क नहीं

Talk to a FundRaksha recovery expert for free. In one call we assess your unpaid invoices and tell you honestly what can be recovered, how, and in roughly how long. No fee for the call, no obligation, and no upfront cost if you go ahead: our fee is a percentage of what we actually recover.

A review of your invoices, purchase orders, delivery proof and the buyer’s replies
An honest assessment of recovery chances and the right route: reminders, legal notice, MSME Samadhaan, Section 138 or a civil suit
A realistic timeline and the exact cost: nothing upfront, a success fee only on recovery
A dedicated advocate assigned within 24 hours if you decide to proceed

Book a free consultation WhatsApp +91 89777 89200

Keep these ready

The unpaid invoice(s) and payment terms
Purchase order, delivery challan, e-way bill or proof of service
Messages, emails or letters about the payment
For a bounced cheque: the cheque and the bank return memo

No recovery, no fee. Court fees, if any, are borne by the client and told upfront.

FAQ

Questions, answered

Salaried employees without business income may choose each year. For TDS they tell the employer at the start of the year; the default is the new regime.

More payroll pages

Start here

By city

This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.