Knowledge Hub
Compliance Resources
Expert guides, statutory calendars, downloadable checklists, and compliance FAQs — everything Indian businesses need to stay payroll-compliant.
Expert guides, statutory calendars, downloadable checklists, and compliance FAQs — everything Indian businesses need to stay payroll-compliant.
A 50-point checklist covering PF, ESIC, TDS, PT, Minimum Wages, Gratuity, Bonus, and all statutory filings — designed for HR Managers and Finance Heads. Includes monthly task tracker and penalty avoidance tips.
Reference calendar for key payroll statutory deadlines — applicable for most Indian employers under central and state legislation.
| Compliance | Act / Statute | Due Date | Applicable To | Frequency |
|---|---|---|---|---|
| PF Monthly Payment | Employees' Provident Fund Act, 1952 | 15th of every month | All PF-registered employers | Critical |
| ESIC Monthly Payment | Employees' State Insurance Act, 1948 | 15th of every month | Establishments with 10+ employees | Critical |
| TDS Deposit (Salary) | Income Tax Act, 1961 — Section 192 | 7th of following month | All employers deducting TDS | Critical |
| Professional Tax (MH) | Maharashtra State Tax on Professions Act, 1975 | Last day of each month | Maharashtra employers | Monthly |
| PF Monthly Return (ECR) | EPF & MP Act, 1952 | 25th of following month | All PF-registered employers | Monthly |
| ESIC Half-Yearly Return | ESI Act, 1948 | 11th Nov & 11th May | ESIC-registered employers | Half-Yearly |
| TDS Quarterly Return (24Q) | Income Tax Act — Form 24Q | 31st Jul / 31st Oct / 31st Jan / 31st May | All TDS deductors | Quarterly |
| Form 16 Issuance | Income Tax Act — Section 203 | 15th June every year | All employers deducting TDS | Annual |
| Annual PF Return | EPF & MP Act, 1952 | 30th April every year | All PF-registered employers | Annual |
| Bonus Payment | Payment of Bonus Act, 1965 | 8 months from accounting year end | Employers with 20+ employees | Annual |
| Minimum Wages Revision | Minimum Wages Act, 1948 | April & October (bi-annual) | All employers | Half-Yearly |
* Due dates subject to change basis government notifications. Consult our compliance team for your specific applicability.
Essential terms every HR manager and business owner must understand to stay compliant and informed.
Monthly filing submitted on the EPFO unified portal that combines PF challan payment and employee-wise contribution data in a single upload.
12-digit permanent number allotted to each PF member by EPFO, which remains constant throughout the employee's career across all employers.
Tax deducted by the employer from employee salaries at the time of payment under Section 192 of the Income Tax Act, 1961.
State-level tax levied on individuals earning a salary or practicing a profession, deducted monthly and remitted to the respective state government.
State-specific statutory contribution towards employee welfare activities, deducted from both employee and employer at defined intervals.
Salary deduction for days an employee is absent beyond their leave entitlement. Affects PF, ESIC, and other statutory computation bases.
Total expenditure incurred by the employer for an employee annually, including gross salary, employer PF/ESIC contributions, gratuity provision, and allowances.
Complete payment made to an exiting employee covering all dues — pending salary, leave encashment, gratuity, bonus, and other statutory obligations.
Central legislation governing the employment of contract labour, mandating registration for principal employers and licensing for contractors.
Short video guides on India's most critical payroll compliance topics — crafted for HR and finance professionals.
Ready-to-use Excel templates, checklists, and calculators built for Indian payroll and compliance professionals.
Structured Excel sheet for collecting attendance, leave, and variable pay inputs from HR — ready for payroll processing.
Auto-compute gratuity liability for any employee based on last drawn salary, date of joining, and date of exit.
50-point statutory checklist covering all major compliance obligations month-by-month for Indian employers.
Compute exact monthly TDS deduction per employee under both tax regimes with investment declaration inputs.
Automated calendar tool that highlights upcoming compliance deadlines for PF, ESIC, TDS, PT, and LWF.
Step-by-step checklist for HR teams processing full and final settlements — covering all components and timelines.
Tailored compliance insights for India's most regulated and active industries.
Key changes in Indian payroll law and statutory regulations — summarised for busy HR and finance professionals.
EPFO has issued a fresh advisory regarding the possible revision of the PF wage ceiling from ₹15,000. Employers should review contribution structures and prepare payroll impact analysis ahead of the notification.
The Maharashtra Labour Department has notified revised minimum wages applicable from April 1, 2024 across various categories. Employers must update payroll configurations to comply with new zone-wise wage slabs.
New standard deduction limit of ₹75,000 under the new tax regime. Employers must update TDS computation templates and recollect declarations from employees opting for the new regime.
ESIC has extended its coverage to additional categories of shops, hotels, and restaurants with 10 or more employees across newly notified areas in Maharashtra. Verify your applicability status.
Employers must ensure quarterly TDS returns (Form 24Q) for Q3 are reconciled with employee Form 26AS data. Mismatches attract notices and demand orders from the Income Tax Department.
Anonymised compliance success stories — real problems, real solutions, real outcomes.
An auto-parts manufacturer approached us after receiving an ESIC inspection notice. Our team uncovered 18 months of back contributions for seasonal contract workers that had been missed. By filing back returns and leveraging our ESIC authority relationships, we resolved the issue before it became a criminal matter.
A fintech startup needed investor-ready payroll records urgently. Our team reconstructed 3 years of compliant payroll registers, reconciled all PF and TDS, and delivered a complete documentation package.
Routine payroll audit revealed 2 years of under-deducted TDS. Proactive revised returns avoided a 200% penalty demand from the Income Tax Department entirely.
Dangerous misconceptions that lead to penalties, legal liability, and audit failures.
Once you reach 20 employees even briefly, PF registration becomes mandatory and the obligation continues even if headcount drops. Voluntary registration is also open for smaller firms.
Persons employed through contractors in your premises may count towards your ESIC applicability threshold as the principal employer. This is one of the most commonly missed compliance obligations.
Non-maintenance of statutory registers — wage register, attendance register, overtime register — attracts separate penalties under the Minimum Wages Act and Shops & Establishments Act, independent of salary payment.
While the payment trigger is 5 years, employers must maintain accurate service records from day one. Missing records create disputes, legal exposure, and delayed settlement claims that damage employer reputation.
Under the Payment of Bonus Act 1965, bonus is mandatory for eligible establishments with 20+ employees. Minimum bonus is 8.33% and must be paid within 8 months of the financial year end. Non-payment attracts penalties and criminal liability.
A quick reference guide to statutory penalties under key Indian labour laws — the real cost of getting it wrong.
| Non-Compliance Type | Applicable Act | Penalty / Consequence | Risk Level |
|---|---|---|---|
| PF Late Payment | EPF & MP Act, 1952 — Sec 14B & 7Q | Damages 5%–25% p.a. + Interest 12% p.a. | High |
| ESIC Default | ESI Act, 1948 — Sec 85 | Simple interest 12% p.a. + Prosecution up to ₹10,000 fine | High |
| TDS Under-Deduction | Income Tax Act — Sec 201 | 200% penalty on shortfall + Interest 1–1.5% per month | Critical |
| TDS Late Deposit | Income Tax Act — Sec 234E | ₹200/day late filing fee until default period | Medium |
| Bonus Non-Payment | Payment of Bonus Act, 1965 — Sec 28 | Imprisonment up to 6 months + Fine up to ₹1,000 | High |
| Register Non-Maintenance | Minimum Wages Act / S&E Act | Fine up to ₹10,000 per offence per inspection | Medium |
| CLRA Non-Compliance | Contract Labour (R&A) Act, 1970 | Imprisonment up to 3 months + Fine up to ₹1,000 per day | Critical |
| Gratuity Non-Payment | Payment of Gratuity Act, 1972 | Imprisonment 6 months–2 years + Fine (repeat defaults) | High |
Don't let compliance gaps become costly penalties.
Get a Free Compliance Health CheckA visual walkthrough of every step in a compliant payroll cycle — from input collection to statutory filing.
Attendance, leave, LOP, variable pay, new joiners, resignations
Gross salary, statutory deductions, net pay calculation, TDS
3-stage compliance check, variance analysis, approval
Bank files uploaded, salary credited, payslips distributed
PF ECR, ESIC contribution, PT remittance, TDS challan
Payroll MIS, register update, statutory summary shared
Actionable tips from our senior compliance team — practical, specific, and India-context focused.
A shadow payroll — running your old and new system in parallel for one cycle — is the single best way to catch data migration errors before they affect real employee salaries.
Collecting investment proofs in January without re-projecting annual TDS is the most common cause of short deduction. Always re-compute the full-year TDS liability from February onwards.
Bank statement vs salary register, Form 26AS vs TDS returns, and EPFO portal vs ECR submissions — these three checks catch 90% of compliance issues before they escalate.
An objective guide to popular payroll software in India — helping you make the right choice for your business size and budget.
Note: Software ratings based on our team's operational experience managing payroll across 300+ clients using these platforms. We integrate with all major HRMS tools — your existing system doesn't need to change.
Organised by topic — find exactly what you need to navigate India's payroll compliance landscape.
Answers to the most common payroll and compliance questions from Indian employers.
