Statutory Compliance Services in India: PF, ESIC, PT and Labour Law, Done for You
Statutory compliance services cover your company's full obligations under Indian labour law, from PF, ESIC, Professional Tax and TDS registration and filings to returns, records and inspection handling, all managed by HRTailor as one service.
What Are Statutory Compliance Services ?
Managed properly, statutory compliance in HR keeps every employee related obligation aligned with the law. HRTailor combines payroll and statutory compliance into one service, so your PF and ESIC filings, professional tax and TDS are handled together.
In India, statutory compliance is a legal must, not a choice. It covers central laws like Provident Fund (PF), ESIC, gratuity, bonus, minimum wages, maternity benefit, contract labour (CLRA), POSH and the DPDP Act, plus state rules like Professional Tax and the Shops and Establishments Act.
Indian businesses spend around 252 hours a year on regulatory compliance (World Bank, 2023). For a growing SME, that work usually lands on the founder or a generalist HR person who cannot realistically track every rule.
Understanding India's Statutory Compliance Framework
The list of statutory compliance obligations below shows where legal and statutory compliance applies, across PF, ESI, professional tax, TDS, the Labour Welfare Fund and the Shops and Establishments Act.
Key compliance areas every Indian employer must manage, from central acts to state-specific legislation.
Employees' Provident Fund (EPF)
PF applies once you have 20 employees (10 in some industries). Employer and employee each contribute 12% of basic pay, and the monthly ECR is filed on the EPFO portal by the 15th.
Employee State Insurance (ESIC)
ESIC covers employees earning up to Rs.21,000 a month (Rs.25,000 for persons with disability) in units with 10 or more staff. Employer pays 3.25% and employee 0.75%, deposited by the 15th each month.
Professional Tax (PT)
Professional Tax is a state tax with its own slabs and due dates. In Maharashtra it is capped at Rs.2,500 a month. Every state has its own portal and filing format.
Tax Deducted at Source (TDS)
Employers deduct TDS on salaries based on each employee's estimated annual income and tax slab. It is deposited by the 7th every month, with quarterly returns in Form 24Q.
Labour Welfare Fund (LWF)
The Labour Welfare Fund is a state fund with different rates. Maharashtra collects it twice a year (Rs.18 from the employer, Rs.6 from the employee). Late payment adds penalties and interest.
Shops and Establishments Act
Every establishment must register under its state's Shops and Establishments Act within 30 days of starting up. It sets working hours, weekly offs, overtime, leave and conditions of service.
Consequences of Statutory Non-Compliance in India
Non-compliance is expensive. The EPFO collected over Rs.1,200 crore in penal damages in 2023, and the Labour Ministry (2024) says more than 40% of penalty cases come from late or incorrect filings, not serious violations. In short, most penalties are avoidable 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
Beyond filings, our labour law compliance services keep your HR policies and procedures current with every applicable act, so your compliance policies and procedures hold up to any inspection or audit.
Statutory Registration & Setup
Fresh PF, ESIC, Professional Tax, Shops and LWF registrations when you start out or move into a new state. We prepare the documents, file online and follow up until every certificate is in hand.
Monthly Compliance Calendar
One calendar that tracks every filing deadline across all your statutes, with reminders 7, 3 and 1 day before each due date: PF and ESIC by the 15th, TDS by the 7th, PT as per your state.
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
For every new client we check registration status, past filings, contribution accuracy, records and any open notices or penalties, so you know exactly where you stand.
Inspection & Notice Handling
Full support if an inspection happens or a notice arrives, we prepare the documents, deal with inspectors and draft responses. Thanks to this proactive approach, most of our 200+ clients have never had a penalty notice.
New Labour Code Readiness
The four new Labour Codes will reshape India's labour law, including how wages are defined, which affects PF, ESIC and gratuity. We are already getting clients ready for the change.
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 to 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 to 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.
Statutory compliance across India
We manage PF, ESIC, professional tax, TDS and labour law compliance for teams in every major Indian city, and remotely for companies hiring across multiple states.