A budget is not just an assemblage of numbers, it is an expression of our ambitions. Budget is significant in varied arenas. Be it any sector across the globe, budget aids in controlling spending, tracking expenses that would ultimately help achievement of goals, yet save money.

HR and payroll budgets, if not managed well can topple the working of any sector. HR budgets encompass funds allocated to hiring, salaries, benefits, workforce engagement, and many more components.

Let’s quickly view the important points from the union budget presented yesterday, specifically for Human resource teams.

1) NPS contribution – Tax exemption

Budget 2022 hikes tax exemption on employer’s NPS contribution for state govt staff to 14% from 10%

2) Standard Deductions – No change

Budget 2022 has made no change in the standard deduction amount available to salaried individuals and pensioners.

3)  Income Tax rates & Slabs

No change in the income tax rates and slabs, an individual taxpayer will continue to pay the same rate of tax depending on the tax regime chosen for FY 2022-23.

Regards,