Statutory Compliance Checklist for Employers India 2026 — PF, ESIC, PT, TDS & More
Statutory Compliance Checklist for Employers India 2026 — PF, ESIC, PT, TDS & More
HR Compliance Checklist for Indian Employers 2026 — Statutory Compliance Calendar
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.
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Abhijit Divekar
Abhijit Divekar is the Managing Partner of Team Management Services (TMS), with 19+ years of experience in HR outsourcing, contract staffing, and statutory compliance across India. He has helped 450+ companies build compliant, scalable workforces.