HR Statutory Compliance in India: The Complete 2026 Guide
Statutory compliance is the set of labour and tax obligations every employer in India must meet for its workforce — from provident fund and ESIC to professional tax, labour welfare fund, TDS, bonus and gratuity, now all sitting under the four consolidated Labour Codes. This hub explains each obligation, who it applies to, and when it’s due, and links to our detailed guides on each.
Maintained by the TMS compliance team · date-stamped July 2026.
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The four Labour Codes — the 2026 baseline
India’s 29 central labour laws are now consolidated into four Codes (in force since 21 November 2025): the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code. Two changes matter most day-to-day:
- Wages must be at least 50% of total pay — this resets PF, gratuity and other wage-linked calculations.
- Appointment letters are mandatory for every employee.
Statutory compliance obligations at a glance
| Obligation | Applies when | Employer must |
|---|---|---|
| EPF (Provident Fund) | 20+ employees (voluntary below) | Deduct + contribute, file monthly ECR |
| ESIC | 10+ employees, wages up to ceiling | Deduct + contribute, monthly challan |
| Professional Tax | State-specific | Deduct per state slab, file per state calendar |
| Labour Welfare Fund | State-specific | Contribute per state (usually half-yearly/annual) |
| TDS on salary (Sec 192) | All employers | Deduct, deposit monthly, file 24Q, issue Form 16 |
| Payment of Bonus | Eligible employees | Compute + pay annually |
| Gratuity | 5+ years service (as applicable) | Provision + pay under the Gratuity Act |
| Minimum wages | All employers | Pay at or above the notified state/skill minimum |
Rates and thresholds are state- and time-specific. TMS verifies each client’s obligations against current state notifications before every payroll run.
Explore each obligation in detail
- HR Statutory Compliance Checklist 2025–2026 — the month-by-month filing calendar
- Minimum Wage in India — state-wise reference
- Professional Tax, PF, ESIC and LWF guides
- Labour Codes explainers
The compliance calendar (recurring)
- Monthly: EPF ECR, ESIC challan, PT challans (per state), TDS deposit
- Quarterly: TDS return (Form 24Q)
- Half-yearly / annual: LWF, EPF annual returns, ESIC half-yearly return
- Annual (by 15 June): Form 16 issuance
- Event-based: joiners, exits, bonus (annual), gratuity (on exit)
Missing any of these triggers interest, penalties and, for repeat lapses, prosecution of the principal employer.
Why employers outsource statutory compliance to TMS
Statutory compliance is high-frequency, state-fragmented and unforgiving of error. TMS clients get per-state, per-category computation (not generic rates); every filing prepared and lodged on the statutory calendar; a compliance MIS with deduction-rate, basic-DA-split and minimum-wage checks; and a 20-year track record across Indian states. Fold compliance into a wider payroll outsourcing engagement, or run it standalone.
Get a free statutory compliance review. We’ll map your obligations by state and flag gaps. Request a review → · +91-22-4896-7640
Frequently asked questions
What is statutory compliance in HR?
An employer’s legal obligation to follow the central and state labour and tax laws governing its workforce — PF, ESIC, professional tax, LWF, TDS, bonus, gratuity and minimum wages — now consolidated under the four Labour Codes.
Which statutory compliances are mandatory for a company in India?
The core set is EPF, ESIC, Professional Tax (state-wise), LWF (state-wise), TDS on salary, Payment of Bonus, Gratuity and minimum wages, plus mandatory appointment letters. Applicability depends on headcount, wages and state.
What happens if a company doesn’t comply?
Consequences range from interest and penalties to prosecution of the principal employer and, for repeat breaches, licence risk — plus exposure in due diligence and audits.
Are the rates the same across India?
No. Professional tax, LWF and minimum wages vary by state and are revised periodically. TMS verifies each against current notifications.
General information verified by the TMS compliance team as of July 2026, not legal advice.