Site allowance, hazard / height allowance, DA linked to AICPI, BOCW cess @ 1% for the employer, civil + MEP + finishing department split. For builders, developers, EPC contractors.
Each row is a pain point we've heard from operators in this vertical — and the specific FastLegal Payroll feature that addresses it.
ProblemBOCW cess @ 1% of project cost should be deducted at source but accountants forget it on every project.
FastLegal solvesBOCW Cess is a built-in employer-side contribution (1% of basic). Computed every payroll cycle; shown as an employer cost on the run summary.
ProblemSite engineers and labour earn hazard / height allowance — paid in cash, never on a payslip.
FastLegal solvesHazard / Height Allowance is a built-in salary component (₹3,000/mo default). Site Allowance is a separate component (₹2,500/mo default).
ProblemSite shifts (early start, ends in mid-afternoon) don't match office shift templates.
FastLegal solvesMorning Shift (07-16) and Evening Shift (13-22) pre-loaded for site staff. General hours for site office and head-office staff.
ProblemCivil / MEP / Finishing / Safety departments need separate cost-centre reporting.
FastLegal solvesIndustry profile pre-loads 7 departments: Civil, MEP, Finishing, Safety/EHS (Site) + Procurement, Planning, Accounts (Office).
ProblemContract labour through subcontractors handled outside payroll, audit trail breaks.
FastLegal solvesEngage subcontractors via the Contractor module with their own invoicing, TDS u/s 194C (1% / 2%), audit trail. Permanent staff stay on the Employee side.
ProblemSite engineer ladder (Project Manager → Site Engineer → Site Supervisor → Foreman → Mason / Carpenter / Electrician → Helper) doesn't match generic designation lists.
FastLegal solvesIndustry profile pre-loads 12 designations across the site + office split.
Three allowances every construction company pays — modelled as standard salary components on the Construction profile, with the right taxable / non-taxable flag.
The Building and Other Construction Workers Welfare Cess Act, 1996 requires every construction project to deduct 1% cess at source. FastLegal models it as a per-payroll employer contribution, visible on the run summary alongside PF and ESI.
Construction is two distinct worlds — site and office. The Construction industry profile pre-loads departments and shifts matching this split.
FastLegal Payroll references each of these frameworks correctly in its payslips, PDFs and statutory exports.
1% cess on construction cost; benefits scheme for registered workers.
Worker registration when employing 5+ migrant workers from another state.
Principal employer obligations when ≥ 20 contract workers on site.
OSH for construction sites; safety equipment provision.
Mandatory ≥ 20 workers. Project-based registration possible.
BOCW Cess (1% of project cost) is a built-in employer-side contribution on the Construction industry profile. Computed every payroll cycle as 1% of basic; shown on the run summary as an employer cost line. Use the per-project tagging in the audit log to attribute cess to the right project for state BOCW board remittance.
Partially. Permanent employees (project managers, site engineers, supervisors) go through the Employee + Payroll module. Contract labour through subcontractors goes through the Contractor module — invoices, TDS u/s 194C, GST, payouts. Both are visible on the same dashboard but managed in their respective modules.
Yes. Site Allowance and Hazard / Height Allowance are both taxable salary components per Section 17(1) of the Income-tax Act. They appear as line items on the payslip and flow into Form 16 Part B. There's no statutory exemption for them under the ITA today.
Partially. Use Branch as the project-level container — each project gets its own Branch with its own city / state / Shops Act registration. Payroll runs can be scoped to one project (branch) or many; cost reports filter by branch. Project-level cost-centre splitting beyond Branch is on the roadmap.
The Inter-State Migrant Workmen Act, 1979 requires registration with both source and destination states when employing 5+ migrant workers. Beyond registration (which is outside the scope of payroll software), wages must be paid at parity with local workers. FastLegal applies the destination state's PT slab and Shops Act rules automatically per employee branch.
Create a workspace, bootstrap the standard Indian defaults (leave types, salary structure, holidays for two years), add your first employee, and run May payroll — all before your evening chai.