The 4 Labour Codes — What Changed (Effective 21 November 2025)
India's four new Labour Codes — the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health & Working Conditions (OSH) Code — came into force on 21 November 2025, consolidating 29 central labour laws into four.
What this means for Maharashtra employers:
- The Codes now sit above many existing Maharashtra state laws. Several state acts (Shops & Establishments, Professional Tax administration, Labour Welfare Fund) continue to operate, but increasingly within the framework of the Codes.
- "Wages" is now defined uniformly — basic pay must be at least 50% of total CTC, which changes PF, gratuity and bonus calculations for most salary structures.
- Appointment letters are now mandatory for every employee.
- Important: the Codes are in force and their principal rules were notified in May 2026; some Maharashtra state-level rules are still being aligned. During this transition, employers should comply with both the existing Maharashtra acts and the new Codes — we track both so you stay covered.
Content current as of June 2026. Labour Code rules are evolving; we update these guides as new notifications are issued.
Key Maharashtra State Laws for Employers
1. Maharashtra Professional Tax (PT)
The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 governs Professional Tax in the state.
Employee PT Slabs (Monthly)
| Monthly Salary Range | PT per Month (Men) | PT per Month (Women) |
|---|---|---|
| Up to ₹7,500 | Nil | Nil |
| ₹7,501 to ₹10,000 | ₹175 | Nil |
| Above ₹10,000 | ₹200 (₹300 in Feb) | ₹200 (₹300 in Feb) |
Key points:
- Maximum annual PT: ₹2,500 per employee
- Employer must register on Maharashtra GST/PT portal
- Monthly payment due by last day of the following month
- Annual return filing: Within 60 days of financial year end
- Penalty for late payment: ₹5 per day of default
- Women earning up to ₹10,000/month are exempt
2. Maharashtra Labour Welfare Fund (MLWF)
Under the Maharashtra Labour Welfare Fund Act, 1953:
- Employee contribution: ₹6 per half-year (deducted from salary in June and December)
- Employer contribution: ₹18 per half-year per employee
- Due dates: 30th June and 31st December
- Applicable to: All establishments with employees in Maharashtra
- Payment: Through Maharashtra LWF online portal
3. Maharashtra Shops and Establishments Act, 2017
The new Act (replacing the 1948 version) applies to every shop and commercial establishment in Maharashtra:
Registration
- Online registration mandatory within 60 days of commencement
- Registration through Maharashtra's online portal (mahaonline.gov.in)
- Valid for the lifetime of the establishment (no renewal needed under new Act)
Working Hours
- Maximum 9 hours/day, 48 hours/week
- Overtime at double the ordinary rate of wages
- Women allowed to work in night shifts (with safety provisions)
- Mandatory weekly holiday (Sunday or any other day)
Leave Provisions
- Annual leave: 21 days for adults (after 240 days of work)
- Sick leave: As per company policy (minimum 7 days recommended)
- National and festival holidays: As per list published by Maharashtra government
4. Central Laws Applicable in Maharashtra
Employees' Provident Fund (EPF)
- Mandatory for establishments with 20+ employees
- Employer: 12% of basic + DA (3.67% EPF + 8.33% EPS)
- Employee: 12% of basic + DA
- Admin charges: 0.50% + EDLI 0.50%
- Filing: ECR on EPFO unified portal by 15th of following month
Employees' State Insurance (ESI)
- Applicable to employees earning ≤₹21,000/month (₹25,000 for disabled)
- Employer: 3.25% of gross wages
- Employee: 0.75% of gross wages
- Filing: Through ESIC portal by 15th of following month
Payment of Bonus Act
- Applicable to establishments with 20+ employees
- Employees earning up to ₹21,000/month are eligible
- Minimum bonus: 8.33% of salary
- Maximum bonus: 20% of salary
- Payment: Within 8 months of financial year end
Payment of Gratuity Act
- Applicable to establishments with 10+ employees
- Payable after 5 years of continuous service
- Formula: (Last drawn salary × 15 × years of service) / 26
- Maximum limit: ₹20,00,000
Maharashtra Compliance Calendar
| Compliance | Frequency | Due Date | Portal/Authority |
|---|---|---|---|
| PF Payment & ECR | Monthly | 15th of following month | EPFO Unified Portal |
| ESIC Payment | Monthly | 15th of following month | ESIC Portal |
| Professional Tax | Monthly | Last day of following month | MGSTD Portal |
| TDS Payment | Monthly | 7th of following month | Income Tax Portal |
| LWF Payment | Half-yearly | 30th Jun & 31st Dec | Maharashtra LWF Portal |
| TDS Returns (24Q) | Quarterly | 31st Jan/May/Jul/Oct | TRACES Portal |
| PT Annual Return | Annual | Within 60 days of FY end | MGSTD Portal |
| Form 16 Issue | Annual | 15th June | To employees |
| PF Annual Return | Annual | 25th April | EPFO Portal |
| Bonus Payment | Annual | Within 8 months of FY | Direct to employees |
Penalties for Non-Compliance in Maharashtra
| Violation | Penalty |
|---|---|
| Late PF payment | 12% p.a. interest + damages up to 100% of arrears |
| Non-deposit of PF | Imprisonment up to 3 years + fine up to ₹10,000 |
| Late ESIC payment | 12% p.a. interest on delayed amount |
| PT non-compliance | ₹5/day penalty + prosecution provisions |
| Shops Act violation | Fine up to ₹50,000 for first offence |
| Late TDS payment | 1.5% per month interest |
| Late TDS return | ₹200/day late fee (max = TDS amount) |
| Non-payment of bonus | Imprisonment up to 6 months + fine up to ₹1,000 |
How HRTailor Ensures Maharashtra Compliance
As a Mumbai-headquartered company, HRTailor has deep expertise in Maharashtra labour laws. Our compliance management includes:
- Automated compliance calendar with reminders for every filing deadline
- State-specific calculations — PT slabs, LWF contributions, leave provisions per Maharashtra rules
- Regular updates — We monitor Maharashtra government notifications for any law changes
- Audit-ready records — All challans, returns, and documentation maintained digitally
- Expert team — 15+ years of Maharashtra-specific compliance experience
FAQs — Maharashtra Labour Compliance
Is Shops & Establishments registration mandatory in Maharashtra?
Yes, under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, every shop and commercial establishment must register online within 60 days of commencement. The registration is now valid for the lifetime of the establishment.
What are the LWF contribution rates in Maharashtra?
Employee contribution is ₹6 per half-year and employer contribution is ₹18 per half-year per employee. Contributions are due in June and December each year.
Are women exempt from Professional Tax in Maharashtra?
Women earning up to ₹10,000/month are exempt from Maharashtra Professional Tax. Women earning above ₹10,000/month are subject to the same PT slab as men — ₹200/month (₹300 in February).
What is the minimum bonus in Maharashtra?
Under the Payment of Bonus Act, minimum bonus is 8.33% of salary (capped at ₹21,000/month calculation ceiling). This applies to all eligible employees in establishments with 20+ workers in Maharashtra.
How can HRTailor help with Maharashtra compliance?
HRTailor manages end-to-end Maharashtra compliance — from Shops Act registration to monthly PF/ESIC/PT filing, quarterly TDS returns, annual bonus computation, and full audit support. Our automated systems ensure zero missed deadlines.
Need Help with Maharashtra Compliance?
Let HRTailor's experts handle your entire compliance burden — PF, ESIC, PT, LWF, TDS, and more.
Call: +91-224-149-8942
