For any business in India, following statutory compliance in HR isn’t optional — it’s mandatory. Missing deadlines or failing to follow labour laws can lead to penalties, lawsuits, and even reputational damage.
Yet, many startups and SMEs struggle because compliance rules keep changing every year. That’s why having a clear compliance checklist for 2025-2026 is crucial. This blog breaks down every major requirement in simple words so even first-time founders, HR managers, or small business owners can understand.
What it is: (Provident Fund Compliance)A law for saving money for employees’ retirement via regular contributions.
Who it applies to: Companies with 20+ employees.
What to do:
Register with the EPFO.
Deduct 12% of basic salary + DA from employee wages.
Contribute the employer’s share (another 12%).
File Electronic Challan-cum-Return (ECR) every month.
Why important: Ensures retirement savings and is closely monitored by the EPFO.
What it is: A social security law providing health, maternity, and sickness benefits to workers.
Who it applies to: Establishments with 10+ employees (threshold varies by state).
What to do:
Deduct 0.75% of wages from employees.
Contribute 3.25% of wages as employer.
Submit monthly returns and contributions online.
Why important: Provides medical, sickness, maternity, and accident benefits.
What it is: A state tax on salaried employees and professionals.
Who it applies to: Depends on state laws (mandatory in Maharashtra, Karnataka, West Bengal, etc.).
What to do:
Deduct PT from salaries as per state slabs.
Deposit monthly/quarterly depending on rules.
File returns as scheduled.
Why important: State-level compliance — fines are strictly imposed.
What it is: Law requiring employers to deduct tax from employee salaries and report to government.
Who it applies to: All employers paying salaries.
What to do:
Deduct TDS every month based on employee declarations.
Deposit with the government by the 7th of next month.
File quarterly TDS returns (Form 24Q).
Issue Form 16 annually to employees.
Why important: Non-compliance attracts heavy penalties from the Income Tax Department.
What it is: Law that pays long-serving employees a lump sum when they leave.
Who it applies to: Companies with 10+ employees.
What to do:
Pay gratuity to employees completing 5 years of service.
Calculate at 15 days’ wages for each year of service.
Why important: Protects employee rights and prevents disputes at exit.
What it is: A law that ensures employees get a yearly bonus if the employer qualifies.
Who it applies to: Companies with 20+ employees.
What to do:
Pay annual bonus to eligible employees earning up to ₹21,000/month.
Bonus = 8.33% to 20% of annual salary/wages.
Why important: Legally binding and directly linked to employee morale.
What it is: State-level law regulating hours, holidays, leaves, and working conditions in shops and offices.
Who it applies to: Almost all businesses (shops, offices, startups).
What to do:
Register your office/shop within the prescribed timeline.
Maintain records of attendance, salary, and holidays.
Renew registration as per state rules.
Why important: Covers working hours, leave, and employee conditions.
What it is: Law protecting women employees during pregnancy and after childbirth.
Who it applies to: Companies with 10+ employees.
What to do:
Provide 26 weeks of paid maternity leave.
Offer work-from-home flexibility where possible.
No discrimination against women employees.
Why important: Non-compliance can attract lawsuits and reputational harm.
What it is: Laws ensuring fairness, preventing workplace harassment, and equal pay for equal work.
Set up an Internal Complaints Committee (ICC).
Conduct awareness training for employees.
Submit annual compliance reports.
What it is: A law regulating how companies engage and treat contract workers.
Who it applies to: Companies employing 20+ contract workers.
What to do:
Register establishment under the Act.
Ensure contractors provide PF, ESI, and wage benefits.
Why important: Principal employer (you) is held liable if contractor fails.
What it is: A workplace safety law for factories and industrial establishments.
Who it applies to: Manufacturing companies.
What to do:
Maintain health, safety, and welfare provisions.
Track working hours and overtime rules.
Why important: Directly tied to worker safety — highly regulated.
What it is: A yearly compliance routine covering monthly, quarterly, and annual filings.
Here’s a quick reminder of recurring deadlines most companies must follow:
Monthly: PF, ESI, TDS challans & returns.
Quarterly: TDS return filing, PT returns (state-specific).
Annually: Bonus payments, Form 16, gratuity settlements, annual returns under Shops & Establishments / Factories.
Looking ahead, several statutory updates are expected to affect HR compliance in India in 2026:
In short, 2026 will require HR teams to monitor both central code rollouts and state-specific rules closely. Preparing in advance will help avoid penalties and ensure smooth operations.
PF registration, contributions & monthly ECR.
ESI registration & monthly filings.
Professional Tax (if applicable).
TDS deductions & Form 16.
Gratuity & bonus obligations.
Shops & Establishments registration.
Maternity Benefit compliance.
Equal pay and POSH requirements.
Contract labour compliance.
Factory compliance (if applicable).
Monitor updates from Labour Codes and ESIC amnesty schemes.
Conclusion
Statutory compliance can feel overwhelming, especially for startups and SMEs that don’t have a large HR team. But with a clear checklist and the right partner, staying compliant in 2026 becomes much easier.
At Team Management Services (TMS), we’ve helped businesses of all sizes manage compliance seamlessly — from PF/ESI filings to handling audits and inspections. If you want peace of mind and freedom to focus on growth, TMS can be your trusted compliance partner.
👉 Stay compliant with Statutory Compliance Services—no stress, no penalties, just smooth business operations.
✅ From labor laws to regulatory filings, TMS ensures every compliance requirement is met—accurately and on time.
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