HR Statutory Compliance Checklist for 2025-2026
compliance checklist illustration with a calendar, check marks, and an HR manager in an office setting.” srcset=”https://tmservices.co.in/wp-content/uploads/2025/09/HR-Statutory-Compliance-2025-26-Checklist-e1758717097291.png 1024w, https://tmservices.co.in/wp-content/uploads/2025/09/HR-Statutory-Compliance-2025-26-Checklist-e1758717097291-300×139.png 300w, https://tmservices.co.in/wp-content/uploads/2025/09/HR-Statutory-Compliance-2025-26-Checklist-e1758717097291-768×357.png 768w, https://tmservices.co.in/wp-content/uploads/2025/09/HR-Statutory-Compliance-2025-26-Checklist-e1758717097291-600×279.png 600w” sizes=”(max-width: 1024px) 100vw, 1024px” /> Introduction
However, a clear statutory compliance checklist keeps Indian employers on top of PF, ESIC, PT. Labour-law filings — use this 2026 checklist to close gaps before they become penalties. Moreover, 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.
1. Provident Fund (PF) Compliance – EPF Act, 1952
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.
2. Employee State Insurance (ESI) – ESI Act, 1948
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.
3. Professional Tax (PT)
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.
4. Income Tax (TDS on Salaries) – IT Act, 1961
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.
5. Gratuity – Payment of Gratuity Act, 1972
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.
6. Bonus – Payment of Bonus Act, 1965
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.
7. Shops & Establishments Act (State-specific)
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.
8. Maternity Benefit Act, 1961
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.
9. Equal Remuneration Act & POSH Act
What it is: Laws ensuring fairness, preventing workplace harassment, and equal pay for equal work.
- Equal Remuneration: Ensure equal pay for men and women doing the same work.
- As a result, POSH Act (Prevention of Sexual Harassment):
Set up an Internal Complaints Committee (ICC).
Conduct awareness training for employees.
Submit annual compliance reports.
10. Contract Labour (Regulation & Abolition) Act, 1970
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.
For example, ensure contractors provide PF, ESI, and wage benefits.
Why important: Principal employer (you) is held liable if contractor fails.
11. Factories Act, 1948 (for Manufacturing Units)
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.
12. Annual Compliance Calendar 2025-2026 – Deadlines to Track
What it is: A yearly compliance routine covering monthly, quarterly. 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.
13. Updates & Anticipated Changes for 2026
Looking ahead, several statutory updates are expected to affect HR compliance in India in 2026:
- Labour Codes Roll-Out:
The central government is continuing the phased implementation of the four consolidated Labour Codes — Wage Code, Social Security Code, Industrial Relations Code. Occupational Safety & Health Code. State governments are finalizing draft rules, which will standardize wage calculations, overtime rules, and social security contributions. In particular, employers should anticipate new reporting formats and compliance schedules. - Changes to Wages & Overtime:
With the Wage Code, the definition of basic pay and overtime rules may be updated. Companies will need to revise salary structures to comply with minimum basic pay thresholds and overtime calculations. - Extended Social Security Coverage:
The Social Security Code now plans to include gig and platform workers under statutory benefits such as maternity, health insurance, and pensions. Besides, HR teams should be ready to register these workers once the rules are finalized. - ESIC One-Time Dispute Resolution:
The ESIC is running a temporary amnesty and dispute resolution scheme through 2026. This helps employers resolve past compliance disputes, including missed contributions or penalties, encouraging proper registration and reducing litigation. - State-Level Amendments:
Certain states have already amended local labour laws, such as Shops &. Establishments regulations, working hours, and night-shift rules for women. Employers need to monitor state notifications in addition to central legislation.
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.
Quick HR Statutory Compliance Checklist for 2025-2026
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.
Need Help Staying Compliant? TMS Has You Covered.
Managing statutory compliance across states and entities is complex. TMS has helped 450+ companies stay compliant since 2006 — so you can focus on growing your business.
Scale your workforce on-demand. Importantly, we handle payroll, PF, ESI, and contracts — fully compliant.
Talent AcquisitionSpecifically, find the right permanent hires with built-in compliance — from offer letter to onboarding.
Statutory ComplianceOverall, end-to-end PF, ESI, PT, LWF, shop & establishment compliance — pan-India, all states.
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.
If you’ve ever wished HR processes could be simpler, faster, and way less manual — you’ll want to read this. We’ve unpacked how AI is making HR more human again. Explore the world’s first AI platform built for HR Professionals, Candidates, Employees &. Employers. Learn more about AI in Human Resources and AI-powered HR operations.
TMS runs a free compliance health-check against this exact checklist — PF, ESIC, PT, LWF, POSH and the new Labour Codes. Gives you a gap report with deadlines for your states.
Get My Free Compliance Health-Check → Explore Payroll & Compliance ServicesFrequently Asked Questions
What is on an HR statutory compliance checklist?
PF, ESIC, PT, LWF, and labour-law filings and registrations. It covers due dates and returns.
Which registrations are mandatory?
They depend on headcount and state, but PF and ESIC are common. Check thresholds early.
How often must returns be filed?
Most are monthly or annual. A calendar prevents missed dates.
How do employers stay compliant?
They track filings and rule changes closely. In fact, many use a compliance partner.
Stay Compliant with TMS
The Labour Codes raise the bar on every filing. Therefore, TMS keeps you compliant:
- Statutory compliance — PF, ESIC, gratuity, and labour-law filings under the Codes now in force.
- Payroll outsourcing — accurate deductions and contributions every cycle.
- HR outsourcing — compliance plus the wider HR function.
- HR consulting — expert guidance on the new Labour Codes.