Statutory Compliance Checklist for Employers India 2026 — PF, ESIC, PT, TDS & More

Missing a statutory deadline in India is never just an administrative oversight — it is a financial event. A single month’s delay on PF contributions for a 200-person organisation triggers 12% per annum interest plus damages reaching 25% of the outstanding amount. A missed TDS return generates ₹200 per day in late fees. A minimum wages violation carries up to six months’ imprisonment for the responsible officer. This guide provides a complete, structured statutory compliance checklist for 2026 — monthly, quarterly, and annual obligations — with a state-specific section and a penalty reference table every employer should keep on hand.

Key Statutory Laws — Quick Reference

Act	Applicable To	Key Obligation	Primary Penalty
EPF & MP Act, 1952	20+ employees	12%+12% contribution; ECR by 15th	12% interest + damages up to 25%
ESI Act, 1948	10+ employees; wages ≤₹21,000/month	3.25%+0.75% contribution; challan by 15th	12% simple interest p.a.
Income Tax Act (TDS)	All employers	Monthly TDS by 7th; quarterly 24Q returns	1.5%/month interest; ₹200/day late filing
Payment of Bonus Act	20+ employees; salary ≤₹21,000/month	Annual bonus 8.33%–20% by November 30	Fine up to ₹1,000 + prosecution
Payment of Gratuity Act	10+ employees	Gratuity within 30 days of separation	10% p.a. interest on delayed payment
Minimum Wages Act	All employers	Pay at or above state notified minimums	Up to 6 months imprisonment + fine
Contract Labour (R&A) Act	PE with 20+ contract workers	CLRA registration; contractor licence	Fine + licence cancellation

Monthly Compliance Checklist

By the 7th of Every Month

Obligation	Details
TDS Payment	Tax deducted from salaries (Form 24Q) and non-salary payments (Form 26Q) in the previous month deposited by 7th. Exception: March deductions are due by April 30.
TDS Verification	Confirm TDS computed correctly for all employees including tax regime elections (old vs new), deductions, and any salary changes during the month.

By the 15th of Every Month

Obligation	Details
PF ECR Filing and Payment	Upload Electronic Challan-cum-Return and pay combined PF + admin charges. Covers employer 12% + employee 12% on basic+DA. Due 15th of following month.
ESIC Challan Payment	Employer (3.25%) + employee (0.75%) ESIC contribution for previous month. Due 15th. Applicable for all employees earning ≤₹21,000/month gross.
Professional Tax — Maharashtra	PT deducted and remitted by 15th. ₹200/month for employees earning above ₹10,000/month (₹300 in February; total ₹2,500/year).
Professional Tax — Other States	Karnataka, West Bengal, Andhra Pradesh, Tamil Nadu, Telangana have their own PT slabs and due dates. Verify state-specific schedules for each location.

Ongoing Monthly Obligations

• Salary Payment: Wages for employees earning ≤₹24,000/month must be paid by the 7th (1,000+ workers) or 10th (smaller establishments) of the following month
• Minimum Wages Check: Before processing payroll, verify all employees are paid at or above the current state minimum wage for their category. Most states revise in April and October.
• Contract Worker Compliance: Review contractor PF/ESIC challan copies monthly. Principal employer is jointly liable for contractor defaults.
• Statutory Registers: Update attendance, wages, and overtime registers monthly. Keep available for inspector visits at all times.

Quarterly Compliance Checklist

TDS Quarterly Returns

Quarter	Period	Return Due Date	Form
Q1	April – June	July 31, 2026	24Q (salary), 26Q (non-salary)
Q2	July – September	October 31, 2026	24Q, 26Q
Q3	October – December	January 31, 2027	24Q, 26Q
Q4	January – March	May 31, 2027	24Q, 26Q

After filing each quarterly return, issue Form 16A (non-salary TDS certificates) within 15 days. Form 16 (salary certificate) is issued annually after the Q4 return — due by June 15.

ESIC Half-Yearly Returns

Period	Return Due Date
April – September 2026	November 11, 2026
October 2026 – March 2027	May 11, 2027

Annual Compliance Calendar

Obligation	Due Date	Act
PF Annual Return	May 31	EPF & MP Act
ESIC Annual Return	April 30	ESI Act
Bonus Payment	November 30	Payment of Bonus Act
LWF Annual Contribution (most states)	December 31	State LWF Acts
PT Annual Return	Varies by state (e.g., March 31 Maharashtra)	State PT Acts
CLRA Registration Renewal	Before expiry date	Contract Labour Act
Shops & Establishment Renewal	Before expiry date	State Shops Acts
Form 16 to Employees	June 15	Income Tax Act

State-Specific Compliance

Professional Tax — State-Wise Rate Table

State	Monthly Salary Range	PT Rate	Due Date
Maharashtra	Above ₹10,000/month	₹200/month (₹300 in Feb)	15th of following month
Karnataka	₹15,001–₹25,000	₹150/month	20th of following month
Karnataka	Above ₹25,000	₹200/month	20th of following month
West Bengal	₹10,001–₹15,000	₹110/month	21st of following month
West Bengal	Above ₹40,000	₹200/month	21st of following month
Andhra Pradesh	₹15,001–₹20,000	₹150/month	10th of following month
Andhra Pradesh	Above ₹20,000	₹200/month	10th of following month
Tamil Nadu	Above ₹21,000	₹208/month	Quarterly
Delhi	N/A	No PT levied	N/A

Labour Welfare Fund — State-Wise

State	Employer Contribution	Employee Contribution	Frequency
Maharashtra	₹18/half-year	₹6/half-year	June 15 and December 15
Karnataka	₹20/year	₹10/year	Annual (December 31)
Andhra Pradesh	₹70/year	₹30/year	Annual (December 31)
Tamil Nadu	₹80/year	₹20/year	Annual (December 31)
West Bengal	₹7.50/half-year	₹2.50/half-year	Half-yearly
Delhi	No LWF	No LWF	N/A

Penalty Reference Table

Statute	Violation	Penalty
EPF & MP Act	Late payment of PF	12% p.a. interest on delayed amount
EPF & MP Act	Damages on delayed/non-payment	5% (≤2 months); 10% (2–6 months); 15% (6–12 months); 25% (beyond 12 months)
ESI Act	Late ESIC contribution	12% simple interest p.a.
ESI Act	Non-registration / non-remittance	Fine up to ₹10,000 + imprisonment up to 2 years
Income Tax Act (TDS)	Late TDS payment	1.5% per month from deduction date to payment date
Income Tax Act (TDS)	Late TDS return filing	₹200 per day until filed (max = TDS amount)
Minimum Wages Act	Below minimum wages	Fine up to ₹500 first offence; ₹1,000 + 6 months imprisonment for repeat/wilful violation
Payment of Bonus Act	Non-payment / late payment	Fine up to ₹1,000; prosecution of responsible officers
Payment of Gratuity Act	Delayed gratuity	10% p.a. simple interest; fine up to ₹10,000
Contract Labour Act	Operation without valid licence	Fine up to ₹1,000 + up to 3 months imprisonment

How TMS Ensures Zero Penalties

TMS has managed statutory compliance for 450+ clients across 100+ cities in India for 19+ years, maintaining a 100% on-time compliance track record. Our infrastructure includes: a centralised compliance calendar with automated alerts 7, 3, and 1 day before every due date; dedicated state compliance specialists who track minimum wage revisions and PT rate changes before official circulation; automated challan generation built into the payroll processing cycle; inspector-ready documentation in both digital and physical format; and contractual accountability — TMS absorbs the cost of any penalty arising from an error on our part.

Frequently Asked Questions

What happens if we miss the PF ECR filing deadline by a few days?

Interest at 12% per annum begins accruing from the due date. If the delay extends beyond two months, damages at 5–25% of the arrears are levied in addition to interest. EPFO’s online system automatically computes the liability, and regional offices are empowered to initiate recovery proceedings for persistent defaulters.

Our company operates in 6 states. Do we need separate PT registrations for each?

Yes. Professional Tax is a state-level levy and each state requires a separate employer registration and separate return filing. Some states (Delhi) do not levy PT at all. TMS manages multi-state PT compliance for clients as part of our statutory compliance programme.

How frequently are minimum wages revised, and how do we track revisions?

Most states revise minimum wages twice per year — typically effective April 1 and October 1 — though some states revise annually or on a different cycle. Each revision is notified by the State Labour Department in the Official Gazette. TMS clients receive automated minimum wage update alerts and payroll is adjusted within the same processing cycle as the effective date of revision.