Statutory Compliance Services in India - PF, ESIC, PT and Labour Law, Done for You
Statutory compliance services encompass the complete management of a company's obligations under Indian labour and employment laws. This includes registering with statutory authorities, computing employee and employer contributions, filing periodic returns, depositing challans before due dates, maintaining prescribed registers and records, and responding to inspections or notices from government departments.
What Are Statutory Compliance Services ?
For Indian businesses, statutory compliance is not optional -- it is a legal mandate with serious consequences for non-adherence. The regulatory landscape includes central acts like the Employees' Provident Funds and Miscellaneous Provisions Act 1952, the Employees' State Insurance Act 1948, the Payment of Gratuity Act 1972, and the Payment of Bonus Act 1965, alongside state-specific legislation like Professional Tax acts and the Shops and Establishments Act.
According to the World Bank (2023), Indian businesses spend an average of 252 hours per year on regulatory compliance activities. For SMEs without dedicated compliance staff, this burden falls on business owners or generalist HR managers who may not have the specialised knowledge to navigate the intricacies of every regulation.
Understanding India's Statutory Compliance Framework
Key compliance areas every Indian employer must manage - from central acts to state-specific legislation.
Employees' Provident Fund (EPF)
The EPF Act 1952 applies to establishments with 20 or more employees (10 in some notified industries). Both employer and employee contribute 12% of basic wages plus dearness allowance. The employer's share is split between EPF (3.67%) and EPS (8.33%). Monthly ECR filing on the EPFO Unified Portal must be completed by the 15th of the following month.
Employee State Insurance (ESIC)
The ESI Act 1948 covers employees earning gross wages up to Rs.21,000 per month (Rs.25,000 for persons with disability) in establishments with 10 or more employees. Employer contributes 3.25% and employee contributes 0.75% of gross wages. Monthly challan payment is due by the 15th.
Professional Tax (PT)
Professional Tax is a state-level tax with different slabs and filing schedules across states. In Maharashtra, the maximum monthly deduction is Rs.2,500 for employees earning over Rs.10,000 per month. Each state has its own online portal, filing format, and due dates.
Tax Deducted at Source (TDS)
Under Section 192 of the Income Tax Act 1961, employers must deduct TDS on salary payments based on the estimated annual income and applicable tax slab. Monthly TDS deposit is due by the 7th of the following month. Quarterly returns (Form 24Q) must be filed by specified dates.
Labour Welfare Fund (LWF)
LWF is a state-administered fund with varying contribution rates and frequencies. Maharashtra requires bi-annual contributions (June and December) with employer contributing Rs.18 and employee Rs.6 per half-year. Non-compliance attracts penalties and interest.
Shops and Establishments Act
Every commercial establishment in India must register under the respective state's Shops and Establishments Act. This governs working hours, weekly holidays, overtime, annual leave, employment of women, and conditions of service. Registration must be obtained within 30 days of commencing business.
Consequences of Statutory Non-Compliance in India
Understanding the risks of non-compliance underscores why professional management is essential. According to the EPFO Annual Report (2023), the organisation collected over \u20b91,200 crore in penal damages from non-compliant establishments. According to the Ministry of Labour and Employment (2024), over 40% of penalty cases against Indian businesses relate to procedural non-compliance (late filings, incorrect forms) rather than substantive violations \u2014 these are entirely preventable with proper compliance management.
PF Penalties
Interest at 12% p.a. on delayed deposits, damages ranging from 5% to 100% of arrears, and prosecution with imprisonment up to 3 years.
ESIC Penalties
Interest at 12% p.a. on delayed contributions, penalty up to \u20b95,000, and imprisonment up to 2 years for persistent defaults.
TDS Penalties
Late filing fee of \u20b9200 per day, penalty ranging from \u20b910,000 to \u20b91,00,000, and interest at 1.5% per month for delayed deposit.
PT & Shops Act
In Maharashtra, penalty of 10% of tax due plus interest at 1.25% per month. Shops Act fines from \u20b91,000 to \u20b925,000 depending on state.
What HRTailor's Statutory Compliance Services Include
Statutory Registration & Setup
For companies not yet registered or expanding to new states - fresh registrations for PF (EPFO), ESIC, Professional Tax, Shops and Establishments, and LWF. Includes preparing documentation, filing online applications, and following up until registration certificates are obtained.
Monthly Compliance Calendar
A centralised compliance calendar tracking all filing deadlines across every applicable statute. Alerts generated 7 days, 3 days, and 1 day before each deadline. PF ECR by the 15th, ESIC by the 15th, TDS by the 7th, PT as per state schedule.
Periodic & Annual Returns
Quarterly TDS returns (Form 24Q) with reconciliation against Form 26AS, half-yearly ESIC returns, annual PF returns, LWF contributions, Shops Act renewal, and Form 16/16A generation.
Compliance Audit & Gap Assessment
Thorough compliance audit for new clients - registration status, historical filing compliance, contribution accuracy verification, register and record-keeping assessment, and notice or penalty status with any authority.
Inspection & Notice Handling
Complete support when statutory authorities conduct inspections or issue notices - documentation preparation, liaison with inspectors, notice responses, and client interest representation. With our proactive approach, most of our 200+ clients have never received a penalty notice.
New Labour Code Readiness
The four new Labour Codes will consolidate India's labour law framework. The redefinition of 'wages' will affect PF, ESIC, and gratuity calculations. HRTailor is actively preparing clients for the transition.
How HRTailor Delivers Statutory Compliance: Our Process
Compliance Audit
Full audit of statutory registrations, historical filings, contribution accuracy, and pending notices or penalties.
Gap Remediation
Missed filings, under-contributions, or pending registrations fixed. Critical penalty-risk gaps addressed within the first week.
System Configuration
PF, ESIC contribution rates, PT slab mappings, TDS computation rules, and LWF schedules configured on HRTailor.AI.
Monthly Execution
Statutory contributions computed from payroll data, challans prepared, returns filed on government portals, confirmation reports generated.
Periodic Review
Quarterly reviews covering filing status, regulatory updates, and changes from business growth - new locations, headcount, or salary revisions.
Who Needs Statutory Compliance Services ?
Every company operating in India with even a single employee has statutory obligations. However, the need for professional compliance management is especially acute for:
- Startups reaching the 10–20 employee threshold: PF becomes mandatory at 20 employees (10 in some industries) and ESIC at 10 employees. Crossing these thresholds triggers registration obligations that many startups are unaware of.
- Companies expanding to new states: Each new state means new PT registrations, Shops and Establishments Act compliance, and potentially different LWF obligations.
- Businesses that have received compliance notices: If you have received a notice from the PF Commissioner, ESIC authority, or Income Tax Department, HRTailor can remediate existing issues while establishing systems to prevent recurrence.
- Companies preparing for due diligence: Investors and acquirers scrutinise statutory compliance during due diligence. Clean compliance records can materially impact valuation and deal completion timelines.
- Businesses with high employee turnover: Frequent employee exits create compliance complexity around PF transfers, ESIC continuation, and final settlement calculations.
Statutory Compliance Services Pricing
HRTailor's compliance management is included in our HR outsourcing plans:
Without Compliance
Base ₹10,000/mo (up to 15 emp) · then ₹400/emp
₹20,000₹10,000 / month + GST
≈ ₹30,000 billed in advance
- Dedicated Online HR Manager
- 5–6 HR Executives backing your account
- Cloud HRMS (included)
- HR Setup: policies, letters, salary structure
- Monthly Payroll & TDS through HRMS
- Onboarding, grievance, queries, attendance
With Compliance
Base ₹12,500/mo (up to 15 emp) · then ₹500/emp
₹25,000₹12,500 / month + GST
≈ ₹37,500 billed in advance
- Everything in ‘Without Compliance’
- PF / ESIC / PT challan processing
- Statutory filings & registers
- Compliance calendar & reminders
- Audit-ready documentation
Why outsource statutory compliance?
The right compliance partner gives you a dedicated team that monitors every deadline across PF, ESIC, PT, TDS and LWF - not a generic payroll software with a compliance module bolted on.
They file on time, every time, because that’s all they do. And they give you real visibility - a compliance calendar, filing confirmations, and audit-ready records - not a black box where you hope nothing was missed.
HRTailor’s compliance service is built around those three things: proactive monitoring, on-time filing, and complete transparency. Zero penalties for 200+ clients.
Ensure 100% Statutory Compliance
Don't let compliance gaps put your business at risk. HRTailor's expert team manages every statutory obligation so you can focus on growth.