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.
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.
Key compliance points include: UAN generation for every new employee, KYC linking (Aadhaar, PAN, bank account), transfer claims processing for employees joining from other organisations, and international worker coverage under social security agreements.
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. Annual returns are due by 25th April.
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, and half-yearly returns must be filed by 12th May and 11th November.
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. Gujarat has an annual ceiling of Rs.2,500. Karnataka applies graduated slabs from Rs.200 to Rs.2,500 per month. Each state has its own online portal, filing format, and due dates.
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, and Form 16 must be issued to employees by 15th June annually.
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. Other states have different amounts and schedules. Non-compliance attracts penalties and interest.
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. Renewal schedules vary by state -- Maharashtra requires annual renewal, while some states issue permanent registrations.
For companies that are not yet registered or are expanding to new states, HRTailor handles fresh registrations for PF (EPFO), ESIC, Professional Tax, Shops and Establishments, and LWF. This includes preparing documentation, filing online applications, and following up with authorities until registration certificates are obtained.
HRTailor maintains a centralised compliance calendar for every client, tracking all filing deadlines across every applicable statute. Our system generates alerts 7 days, 3 days, and 1 day before each deadline. Every month, the following activities are completed:
Beyond monthly filings, HRTailor manages all periodic statutory returns:
HRTailor conducts a thorough compliance audit for new clients, identifying any gaps in existing statutory adherence. This covers: registration status across all applicable statutes, historical filing compliance and pending returns, contribution accuracy verification, register and record-keeping assessment, and notice or penalty status with any authority.
When statutory authorities conduct inspections or issue notices, HRTailor provides complete support. Our compliance team prepares documentation, liaises with inspectors, drafts responses to notices, and represents client interests. With our proactive compliance approach, most of our 200+ clients have never received a penalty notice.
The four new Labour Codes -- Code on Wages 2019, Code on Social Security 2020, Industrial Relations Code 2020, and Occupational Safety Code 2020 -- will consolidate and modernise India's labour law framework once implemented. HRTailor is actively preparing clients for the transition, particularly the redefinition of "wages" which will affect PF, ESIC, and gratuity calculations.
Our team, led by Makarand Gaikwad (Business HR Head, 15+ years experience), conducts a comprehensive audit of your current compliance status. We review all statutory registrations, historical filings, contribution accuracy, and any pending notices or penalties.
If the audit reveals compliance gaps -- missed filings, under-contributions, or pending registrations -- we prepare a remediation plan with prioritised action items. Critical gaps (those carrying penalty risk) are addressed within the first week.
Your statutory compliance parameters are configured on the HRTailor.AI platform . This includes PF and ESIC contribution rates, PT slab mappings for each employee's work location, TDS computation rules, and LWF schedules.
Each month, our compliance team computes all statutory contributions from payroll data , prepares challans, files returns on the respective government portals, and generates confirmation reports for the client.
Quarterly compliance review meetings are conducted to discuss filing status, regulatory updates, and any changes needed due to business growth (new office locations, headcount changes, or salary revisions).
Every company operating in India with even a single employee has statutory obligations. However, the need for professional compliance management is especially acute for:
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. These are entirely preventable with proper compliance management.
HRTailor's compliance management is included in our HR outsourcing plans:
Rs.12,500/month
Contact our sales team
Standard Plan — complete statutory compliance: multi-state PF, ESIC, PT and LWF management, TDS deposit and quarterly returns, Shops & Establishments Act compliance, compliance audit reports, inspection support and HRTailor.AI compliance dashboard access.
Customized Plan — for larger teams, multiple entities or complex multi-state operations, we build a plan around your exact requirements. Contact our sales team for a tailored quote.
Understanding the risks of non-compliance underscores why professional management is essential:
According to the EPFO Annual Report (2023), the organisation collected over Rs.1,200 crore in penal damages from non-compliant establishments. These penalties are entirely avoidable with systematic compliance management.
The main ones are Provident Fund (EPF), Employee State Insurance (ESIC), Professional Tax (PT), Labour Welfare Fund (LWF) and TDS, plus Shops & Establishments registration — each with its own filings and deadlines.
PF delays attract 12% p.a. interest plus damages up to 100% of arrears; ESIC adds 12% interest and possible prosecution. Most penalties come from late or incorrect filings — exactly what we prevent.
Yes — we manage PF, ESIC, state-specific PT, LWF and Shops & Establishments compliance across all Indian states and union territories.
A dedicated compliance team monitors EPFO, ESIC, Income Tax and state regulatory updates daily, so your filings always reflect the current rules.
Yes — we handle end-to-end registration (EPFO/ESIC enrolment, DSC, UAN generation) and then run your ongoing compliance from there.
The biggest change redefines "wages" so basic pay must be at least 50% of CTC, raising PF, ESIC and gratuity costs. We are already preparing clients for the transition.
A dedicated compliance team monitors EPFO, ESIC, Income Tax, and state regulatory updates daily. Filing templates and contribution rates are updated in the HRTailor system as soon as changes are notified.
The audit covers: registration status across all applicable statutes, historical filing compliance and any pending returns, contribution accuracy, register and record-keeping assessment, and any pending notices or penalties. You receive a written gap report within 3 business days of starting.
Both are part of SKAD HR Group. HRTailor is the online, fixed-price HR department for startups and SMEs (1–100 people). TMS is the enterprise arm — large-scale workforce management, contract staffing and EOR for bigger or cross-border teams.
Do not let compliance gaps put your business at risk. HRTailor's expert team manages every statutory obligation so you can focus on growth. Join 200+ Indian businesses that operate with complete peace of mind.
