{"id":13270,"date":"2026-05-27T12:03:47","date_gmt":"2026-05-27T06:33:47","guid":{"rendered":"https:\/\/www.tankhapay.com\/blog\/?p=13270"},"modified":"2026-05-27T13:06:26","modified_gmt":"2026-05-27T07:36:26","slug":"payroll-compliance-checklist","status":"publish","type":"post","link":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/","title":{"rendered":"Complete Payroll Compliance Checklist India Employers Need in 2026"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_78 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#What_Is_Payroll_Compliance\" >What Is Payroll Compliance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Why_Payroll_Compliance_Is_More_Complex_Than_It_Looks\" >Why Payroll Compliance Is More Complex Than It Looks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#The_Complete_Payroll_Compliance_Checklist_India_2026\" >The Complete Payroll Compliance Checklist India 2026<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Pre-Payroll_Checklist\" >Pre-Payroll Checklist<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Payroll_Processing_Checklist\" >Payroll Processing Checklist<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Post-Payroll_Compliance_Checklist\" >Post-Payroll Compliance Checklist<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Payslip_Requirements\" >Payslip Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Annual_Payroll_Compliance_Checklist\" >Annual Payroll Compliance Checklist<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#6_Biggest_Payroll_Compliance_Mistakes_Indian_Employers_Make\" >6 Biggest Payroll Compliance Mistakes Indian Employers Make<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#1_Wrong_Wage_Base_for_PF_Calculation\" >1. Wrong Wage Base for PF Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#2_Not_Counting_Contract_Workers_in_the_Threshold\" >2. Not Counting Contract Workers in the Threshold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#3_Ignoring_State_Minimum_Wage_Revisions\" >3. Ignoring State Minimum Wage Revisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#4_Missing_CLRA_Registers_During_an_Inspection\" >4. Missing CLRA Registers During an Inspection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#5_Incorrect_Overtime_Calculation\" >5. Incorrect Overtime Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#6_No_Digital_Records\" >6. No Digital Records<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Payroll_Tax_Checklist_Key_Deadlines_at_a_Glance\" >Payroll Tax Checklist: Key Deadlines at a Glance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Why_Compliance_Management_Matters_More_in_2026\" >Why Compliance Management Matters More in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#What_is_a_payroll_compliance_checklist_and_do_I_need_one_even_if_I_only_have_salaried_office_employees\" >What is a payroll compliance checklist, and do I need one even if I only have salaried office employees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#Does_ESI_apply_to_daily_wage_and_contract_workers\" >Does ESI apply to daily wage and contract workers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#What_is_the_penalty_for_paying_below_minimum_wage_in_India_in_2026\" >What is the penalty for paying below minimum wage in India in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#How_does_the_50_basic_wage_rule_affect_payroll_structure\" >How does the 50% basic wage rule affect payroll structure?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#How_long_must_payroll_records_be_kept\" >How long must payroll records be kept?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p class=\"ai-optimize-6 ai-optimize-introduction\"><span style=\"font-weight: 400;\">Did you know that 67% of labour violations at registered Indian businesses are due to wrong wage calculations? Well, most of these are not fraud but rather missed deadlines and payroll that isn&#8217;t set up correctly. Whether you employ salaried professionals in an office, workers on the factory floor, delivery personnel, or contractual staff, payroll compliance risk is real and growing for every kind of employer.<\/span><\/p>\n<p class=\"ai-optimize-7\"><span style=\"font-weight: 400;\">This payroll compliance checklist is designed for all those Indian employers who are managing workforces in 2026. Since the four <\/span><a href=\"https:\/\/www.tankhapay.com\/blog\/labour-codes\/\"><span style=\"font-weight: 400;\">new Labour Codes<\/span><\/a><span style=\"font-weight: 400;\"> came into force in November 2025, the rules of the game have changed. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">This guide will tell you exactly what to look for, what most employers are doing wrong, and what will happen to you if you don&#8217;t fix it now.<\/span><\/p>\n<h2 class=\"ai-optimize-8\"><span class=\"ez-toc-section\" id=\"What_Is_Payroll_Compliance\"><\/span>What Is Payroll Compliance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-9\"><a href=\"https:\/\/www.tankhapay.com\/glossary\/payroll-compliance\"><span style=\"font-weight: 400;\">Payroll compliance<\/span><\/a><span style=\"font-weight: 400;\"> means following all central and state laws when calculating wages, making statutory deductions, and filing returns for workers who may be paid daily, weekly, or on a piece-rate basis.<\/span><\/p>\n<p class=\"ai-optimize-10\"><span style=\"font-weight: 400;\">While the core responsibilities are the same regardless of the type of employer, the complexity varies depending upon your workforce mix. Businesses that have contract workers, variable-attendance staff or operate across multiple states face additional compliance requirements under the Contract Labour (Regulation and Abolition) Act (CLRA), state-specific minimum wage notifications and headcount-based thresholds that can vary month to month.<\/span><\/p>\n<h2 class=\"ai-optimize-11\"><span class=\"ez-toc-section\" id=\"Why_Payroll_Compliance_Is_More_Complex_Than_It_Looks\"><\/span>Why Payroll Compliance Is More Complex Than It Looks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-12\"><span style=\"font-weight: 400;\">Even well-established companies encounter three levels of complexity:<\/span><\/p>\n<ul>\n<li class=\"ai-optimize-13\" style=\"font-weight: 400;\" aria-level=\"1\"><b>Variable attendance<\/b><span style=\"font-weight: 400;\"> &#8211; Bonuses, allowances, overtime, and reimbursements make wage calculations shift every cycle and must be structured correctly under the new Labour Codes.\u00a0<\/span><\/li>\n<li class=\"ai-optimize-14\" style=\"font-weight: 400;\" aria-level=\"1\"><b>Multi-state operations<\/b><span style=\"font-weight: 400;\"> &#8211; Minimum wages, Professional Tax, and Labour Welfare Fund rules vary by state<\/span><\/li>\n<li class=\"ai-optimize-15\" style=\"font-weight: 400;\" aria-level=\"1\"><b>Contract labour liability<\/b><span style=\"font-weight: 400;\"> &#8211; The principal employer is legally responsible for statutory compliance even when a third-party contractor is handling payments<\/span><\/li>\n<\/ul>\n<h2 class=\"ai-optimize-17\"><span class=\"ez-toc-section\" id=\"The_Complete_Payroll_Compliance_Checklist_India_2026\"><\/span>The Complete Payroll Compliance Checklist India 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-18\"><span style=\"font-weight: 400;\">The Payroll Compliance Checklist in India consists of four phases: Pre-Payroll, Payroll Processing, Post-Payroll, and Annual. Make use of it on a monthly basis for maintaining audit readiness.<\/span><\/p>\n<h3 class=\"ai-optimize-16\"><span class=\"ez-toc-section\" id=\"Pre-Payroll_Checklist\"><\/span><span style=\"font-weight: 400;\">Pre-Payroll Checklist<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-19\"><span style=\"font-weight: 400;\">Before making any payment calculations, ensure the following compliances have been made:<\/span><\/p>\n<h4 class=\"ai-optimize-26\">Registrations &amp; Licences<\/h4>\n<ul>\n<li class=\"ai-optimize-27\"><span style=\"font-weight: 400;\">EPFO registration (Mandatory if 20+ employees)<\/span><\/li>\n<li class=\"ai-optimize-28\"><span style=\"font-weight: 400;\">ESIC registration (Mandatory if 10+ employees)<\/span><\/li>\n<li class=\"ai-optimize-29\"><span style=\"font-weight: 400;\">CLRA registration and Form I (Principal Employer) for 20+ contract workers at each establishment<\/span><\/li>\n<li class=\"ai-optimize-30\"><span style=\"font-weight: 400;\">Contractor\u2019s CLRA license and Form IV (Each Location where the contractor works)<\/span><\/li>\n<li class=\"ai-optimize-31\"><span style=\"font-weight: 400;\">Registration under the Shops &amp; Establishment Act (in all States in which you operate)<\/span><\/li>\n<\/ul>\n<h4 class=\"ai-optimize-39\">Employee Documentation<\/h4>\n<ul>\n<li class=\"ai-optimize-40\"><span style=\"font-weight: 400;\">PAN and Aadhaar data obtained from all employees<\/span><\/li>\n<li class=\"ai-optimize-41\"><span style=\"font-weight: 400;\">UAN (Universal Account Number) created or allotted for every individual<\/span><\/li>\n<li class=\"ai-optimize-42\"><span style=\"font-weight: 400;\">IP Number by ESIC allotted for eligible employees<\/span><\/li>\n<li class=\"ai-optimize-43\"><span style=\"font-weight: 400;\">Account numbers verified for online payment of salaries<\/span><\/li>\n<li class=\"ai-optimize-38\"><a href=\"https:\/\/www.tankhapay.com\/blog\/appointment-letter\/\"><span style=\"font-weight: 400;\">Letters of appointment<\/span><\/a><span style=\"font-weight: 400;\"> issued (required under recent Labour Codes)<\/span><\/li>\n<\/ul>\n<h4 class=\"ai-optimize-44\">Wage Structure Review<\/h4>\n<ul>\n<li class=\"ai-optimize-48\"><span style=\"font-weight: 400;\">Basic salary validated to be at least 50% of the gross salary (as per Code on Wages 2019 mandatory provision from November 2025)<\/span><\/li>\n<li class=\"ai-optimize-49\"><span style=\"font-weight: 400;\">Wages verified against the current state minimum wage notification for the applicable trade\/skill category<\/span><\/li>\n<li class=\"ai-optimize-50\"><span style=\"font-weight: 400;\">Salary structure updated for any mid-year minimum wage revision (most states revise in April and October)<\/span><\/li>\n<\/ul>\n<h3 class=\"ai-optimize-51\"><span class=\"ez-toc-section\" id=\"Payroll_Processing_Checklist\"><\/span>Payroll Processing Checklist<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-52\"><span style=\"font-weight: 400;\">This is where most non-compliance issues arise. This is the procedure to follow at all times during payroll.<\/span><\/p>\n<h4 class=\"ai-optimize-53\">Attendance &amp; Wage Calculation<\/h4>\n<ul>\n<li class=\"ai-optimize-60\"><span style=\"font-weight: 400;\">Attendance data verified against biometric or physical muster roll (Form XVI under CLRA)<\/span><\/li>\n<li class=\"ai-optimize-61\"><span style=\"font-weight: 400;\">Wages are calculated on days actually worked and not presumed as 26 days<\/span><\/li>\n<li class=\"ai-optimize-62\"><span style=\"font-weight: 400;\">OT wages paid @ 2 times wage rate for more than 8 hours per day\/48 hours per week as per OSH Code 2020<\/span><\/li>\n<li class=\"ai-optimize-63\"><span style=\"font-weight: 400;\">Total number of OT hours tracked quarterly, with a ceiling of 125, and breaches can lead to a fine of \u20b9500,000.<\/span><\/li>\n<li class=\"ai-optimize-64\"><span style=\"font-weight: 400;\">Weekly rest day is confirmed, workers cannot be made to work 7 days without a rest day.<\/span><\/li>\n<li class=\"ai-optimize-65\"><span style=\"font-weight: 400;\">Wage Register (Form XVII) updated for every worker before payment<\/span><\/li>\n<\/ul>\n<p class=\"ai-optimize-199\"><strong>Must Read:<\/strong> <a href=\"https:\/\/www.tankhapay.com\/blog\/attendance-and-payroll-software\/\">What Is Attendance and Payroll Software? Guide to Systems &amp; Benefits<\/a><\/p>\n<h4 class=\"ai-optimize-72\">Statutory Deductions<\/h4>\n<ul>\n<li class=\"ai-optimize-73\"><b>EPF deduction<\/b><span style=\"font-weight: 400;\">: 12% of basic + DA from employee; 12% employer contribution added.<\/span><\/li>\n<li class=\"ai-optimize-74\"><b>ESI deduction<\/b><span style=\"font-weight: 400;\">: 0.75% ESI deduction if salary is 21,000 or below per month, and 3.25% ESI contribution by the employer.<\/span><\/li>\n<li class=\"ai-optimize-75\"><b>Professional Tax:<\/b><span style=\"font-weight: 400;\"> Deducted according to the respective state slabs.<\/span><\/li>\n<li class=\"ai-optimize-76\"><b>TDS:<\/b><span style=\"font-weight: 400;\"> If income exceeds the basic exemption limit, then TDS deduction as per Section 192<\/span><b>.<\/b><\/li>\n<li class=\"ai-optimize-77\"><b>Labour Welfare Fund<\/b><span style=\"font-weight: 400;\">: Deducted depending on the state rules (frequency varies: monthly, half-yearly, or annually)<\/span><\/li>\n<\/ul>\n<h4 class=\"ai-optimize-83\">Contract Workers<\/h4>\n<ul>\n<li class=\"ai-optimize-84\"><span style=\"font-weight: 400;\">Verify that the contractor has deposited PF\/ESI challans for workers deployed at your premises.<\/span><\/li>\n<li class=\"ai-optimize-85\"><span style=\"font-weight: 400;\">Check the contractor&#8217;s wage register before clearing the invoice.<\/span><\/li>\n<li class=\"ai-optimize-86\"><span style=\"font-weight: 400;\">Include contract workers in your ESIC headcount (10+ threshold applies to total direct + contract workers combined)<\/span><\/li>\n<li class=\"ai-optimize-87\"><span style=\"font-weight: 400;\">Ensure minimum wages are being paid to contract workers; you are liable if the contractor defaults.<\/span><\/li>\n<\/ul>\n<h2 class=\"ai-optimize-88\"><span class=\"ez-toc-section\" id=\"Post-Payroll_Compliance_Checklist\"><\/span>Post-Payroll Compliance Checklist<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-89\">Once the wages are paid, the following filings and deposits must happen on time. Missing even one deadline creates compounding interest and penalty liability across multiple authorities.<\/p>\n<div class=\"table-responsive\">\n<table class=\"table-class\">\n<tbody>\n<tr>\n<th><strong>Obligation<\/strong><\/th>\n<th><strong>Deadline<\/strong><\/th>\n<th><strong>Authority<\/strong><\/th>\n<th><strong>Penalty for Delay<\/strong><\/th>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-94\"><span style=\"font-weight: 400;\">EPF deposit<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-95\"><span style=\"font-weight: 400;\">15th of following month<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-96\"><span style=\"font-weight: 400;\">EPFO<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-97\"><span style=\"font-weight: 400;\">12% interest + up to 100% damages<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-98\"><span style=\"font-weight: 400;\">ESI deposit<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-99\"><span style=\"font-weight: 400;\">15th of following month<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-100\"><span style=\"font-weight: 400;\">ESIC<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-101\"><span style=\"font-weight: 400;\">Interest + prosecution<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-102\"><span style=\"font-weight: 400;\">TDS deposit<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-103\"><span style=\"font-weight: 400;\">7th of following month<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-104\"><span style=\"font-weight: 400;\">Income Tax Dept.<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-105\"><span style=\"font-weight: 400;\">1.5% per month interest<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-106\"><span style=\"font-weight: 400;\">Professional Tax<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-107\"><span style=\"font-weight: 400;\">Varies by state<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-108\"><span style=\"font-weight: 400;\">State PT Authority<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-109\"><span style=\"font-weight: 400;\">Interest and penalty per state Act<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-110\"><span style=\"font-weight: 400;\">Labour Welfare Fund<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-111\"><span style=\"font-weight: 400;\">Half-yearly or annually<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-112\"><span style=\"font-weight: 400;\">State Labour Dept.<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-113\"><span style=\"font-weight: 400;\">Penalty per state Act<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-114\"><span style=\"font-weight: 400;\">Form 24Q (TDS return)<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-115\"><span style=\"font-weight: 400;\">31st July, Oct, Jan, May<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-116\"><span style=\"font-weight: 400;\">Income Tax Dept.<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-117\"><span style=\"font-weight: 400;\">\u20b9200\/day late fee<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3 class=\"ai-optimize-118\"><span class=\"ez-toc-section\" id=\"Payslip_Requirements\"><\/span>Payslip Requirements<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li class=\"ai-optimize-123\"><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/www.tankhapay.com\/glossary\/pay-slip\"><span style=\"font-weight: 400;\">payslip<\/span><\/a><span style=\"font-weight: 400;\"> is issued to every worker, showing gross wages, deductions (PF, ESI, and PT), overtime, and net pay.<\/span><\/li>\n<li class=\"ai-optimize-124\"><span style=\"font-weight: 400;\">Payslips are maintained digitally. The OSH Code mandates digital record-keeping.<\/span><\/li>\n<li class=\"ai-optimize-125\"><span style=\"font-weight: 400;\">Records stored for a minimum of 7 years (some Acts require up to 10 years)<\/span><\/li>\n<\/ul>\n<h3 class=\"ai-optimize-126\"><span class=\"ez-toc-section\" id=\"Annual_Payroll_Compliance_Checklist\"><\/span>Annual Payroll Compliance Checklist<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-127\"><span style=\"font-weight: 400;\">These obligations are easy to miss because they are not monthly, but the penalties are severe.<\/span><\/p>\n<ul>\n<li class=\"ai-optimize-135\"><b>PF Return Filing: <\/b><span style=\"font-weight: 400;\">Annual contribution entries matching with EPFO<\/span><\/li>\n<li class=\"ai-optimize-136\"><b>ESI Return filing: <\/b><span style=\"font-weight: 400;\">Annual check employee eligibility and contributions<\/span><\/li>\n<li class=\"ai-optimize-137\"><span style=\"font-weight: 400;\">Issue Form 16 to all employees before 15th June (Form 24Q with quarter 4)<\/span><\/li>\n<li class=\"ai-optimize-138\"><span style=\"font-weight: 400;\">Pay a bonus amount of 8.33% to 20% of salary for employees earning up to \u20b921,000 per month. Last date &#8211; 30th November of the financial year starting from April-March.<\/span><\/li>\n<li class=\"ai-optimize-139\"><b>Gratuity Calculation: <\/b><span style=\"font-weight: 400;\">Under changes introduced in 2025, employees with fixed terms become eligible after one year (formerly 5 years).<\/span><\/li>\n<li class=\"ai-optimize-140\"><span style=\"font-weight: 400;\">Annual returns under the Factories Act, the Contract Labour Act, and Bonus Act filed<\/span><\/li>\n<li class=\"ai-optimize-141\"><span style=\"font-weight: 400;\">Shops &amp; Establishments licence renewed before expiry date<\/span><\/li>\n<\/ul>\n<h2 class=\"ai-optimize-142\"><span class=\"ez-toc-section\" id=\"6_Biggest_Payroll_Compliance_Mistakes_Indian_Employers_Make\"><\/span>6 Biggest Payroll Compliance Mistakes Indian Employers Make<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-143\">Many employers still make payroll compliance mistakes. Here are the 6 most common issues reported in labour inspections in 2026.<\/p>\n<h3 class=\"ai-optimize-144\"><span class=\"ez-toc-section\" id=\"1_Wrong_Wage_Base_for_PF_Calculation\"><\/span>1. Wrong Wage Base for PF Calculation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-145\"><span style=\"font-weight: 400;\">Many employers still calculate EPF on a basic salary of 30 &#8211; 40% of the CTC. In the code of wages, effective from November 2025, basic salary and DA should at least form 50% of total CTC. Arrears for PF contributions will be calculated retrospectively from the date when the mistake occurred, not the date when it was discovered, at an interest rate of 12% and even 100% damages. <\/span><\/p>\n<h3 class=\"ai-optimize-145\"><span class=\"ez-toc-section\" id=\"2_Not_Counting_Contract_Workers_in_the_Threshold\"><\/span>2. Not Counting Contract Workers in the Threshold<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-147\"><span style=\"font-weight: 400;\">The most common problem in ESI compliance is the failure to include contract employees in the number of employees. In case you have 8 employees directly working for you and 5 contract employees working for you, then your combined count of 13 crosses the 10-employee threshold. All workers, either direct or contractual, must be covered under the ESI Act.<\/span><\/p>\n<h3 class=\"ai-optimize-148\"><span class=\"ez-toc-section\" id=\"3_Ignoring_State_Minimum_Wage_Revisions\"><\/span>3. Ignoring State Minimum Wage Revisions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-149\"><span style=\"font-weight: 400;\">The majority of states make amendments to their minimum wage rates twice a year, i.e., in April and October. An audit firm, which conducted a payroll audit in four states in January 2026, discovered that it was using the old rate of pay for two states, thus paying 28 employees only \u20b94.3 lakh less than it was supposed to due to the minimum wage violation and the subsequent 10\u00d7 penalty imposed by the Code on Wages.<\/span><\/p>\n<h3 class=\"ai-optimize-150\"><span class=\"ez-toc-section\" id=\"4_Missing_CLRA_Registers_During_an_Inspection\"><\/span>4. Missing CLRA Registers During an Inspection<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-151\"><span style=\"font-weight: 400;\">When a labour inspector arrives, three documents are requested first: the principal employer registration certificate, contractor licences, and workers&#8217; wage registers. One company in Bangalore was fined \u20b94.8 lakh because none of the three were available the employer had assumed compliance was entirely the contractor&#8217;s responsibility. It is not. The <\/span><a href=\"https:\/\/clc.gov.in\/clc\/acts-rules\/contract-labour-regulation-abolition-act-1970\"><span style=\"font-weight: 400;\">CLRA Act<\/span><\/a><span style=\"font-weight: 400;\"> creates parallel obligations for both the principal employer and the contractor.<\/span><\/p>\n<h3 class=\"ai-optimize-152\"><span class=\"ez-toc-section\" id=\"5_Incorrect_Overtime_Calculation\"><\/span>5. Incorrect Overtime Calculation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-153\"><span style=\"font-weight: 400;\">An employee who works more than 8 hours in a day or more than 48 hours in a week is to be paid overtime at 2 times the ordinary rate. A common mistake is to calculate overtime on an old or reduced wage base rather than the current, revised one. The OSH Code provides penalties up to \u20b95,00,000 and compensation of up to 10\u00d7 the amount underpaid to the workers.<\/span><\/p>\n<h3 class=\"ai-optimize-154\"><span class=\"ez-toc-section\" id=\"6_No_Digital_Records\"><\/span>6. No Digital Records<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"ai-optimize-155\"><span style=\"font-weight: 400;\">The OSH Code requires maintaining all registers digitally, including registers of attendance, wages, overtime, and employment cards. Paper records alone will not suffice for an inspection under the new framework. Now, the authorities can ask for digital records at short notice using the <\/span><a href=\"https:\/\/shramsuvidha.gov.in\/\"><span style=\"font-weight: 400;\">SHRAM Suvidha Portal<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2 class=\"ai-optimize-157\"><span class=\"ez-toc-section\" id=\"Payroll_Tax_Checklist_Key_Deadlines_at_a_Glance\"><\/span>Payroll Tax Checklist: Key Deadlines at a Glance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-158\"><span style=\"font-weight: 400;\">The following payroll tax checklist includes all important dates every employer needs to keep in mind:<\/span><\/p>\n<div class=\"table-responsive\">\n<table class=\"table-class\">\n<tbody>\n<tr>\n<th><strong>Frequency<\/strong><\/th>\n<th><strong>Task<\/strong><\/th>\n<th><strong>Deadline<\/strong><\/th>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-162\"><span style=\"font-weight: 400;\">Monthly<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-163\"><span style=\"font-weight: 400;\">Deposit EPF contributions<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-164\"><span style=\"font-weight: 400;\">15th of next month<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-165\"><span style=\"font-weight: 400;\">Monthly<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-166\"><span style=\"font-weight: 400;\">Deposit ESI contributions<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-167\"><span style=\"font-weight: 400;\">15th of next month<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-168\"><span style=\"font-weight: 400;\">Monthly<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-169\"><span style=\"font-weight: 400;\">Deposit TDS<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-170\"><span style=\"font-weight: 400;\">7th of next month<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-171\"><span style=\"font-weight: 400;\">Monthly<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-172\"><span style=\"font-weight: 400;\">Update wage register (Form XVII)<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-173\"><span style=\"font-weight: 400;\">Before payment date<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-174\"><span style=\"font-weight: 400;\">Quarterly<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-175\"><span style=\"font-weight: 400;\">File Form 24Q (TDS return)<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-176\"><span style=\"font-weight: 400;\">31st July \/ Oct \/ Jan \/ May<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-177\"><span style=\"font-weight: 400;\">Half-yearly<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-178\"><span style=\"font-weight: 400;\">Labour Welfare Fund (most states)<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-179\"><span style=\"font-weight: 400;\">June 15 and December 15<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-180\"><span style=\"font-weight: 400;\">Annually<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-181\"><span style=\"font-weight: 400;\">Bonus payment<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-182\"><span style=\"font-weight: 400;\">Before November 30<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-183\"><span style=\"font-weight: 400;\">Annually<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-184\"><span style=\"font-weight: 400;\">Issue Form 16 to employees<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-185\"><span style=\"font-weight: 400;\">Before June 15<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p class=\"ai-optimize-186\"><span style=\"font-weight: 400;\">Annually<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-187\"><span style=\"font-weight: 400;\">File PF and ESI annual returns<\/span><\/p>\n<\/td>\n<td>\n<p class=\"ai-optimize-188\"><span style=\"font-weight: 400;\">As notified by EPFO\/ESIC<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2 class=\"ai-optimize-189\"><span class=\"ez-toc-section\" id=\"Why_Compliance_Management_Matters_More_in_2026\"><\/span>Why Compliance Management Matters More in 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-190\"><span style=\"font-weight: 400;\">Compliance management is not just about timely filing anymore. In 2026, the government has resorted to AI-based enforcement. They will correlate your payslips with GST returns and your banking transactions; thus, even a rounding mistake can become an audit flag on the SHRAM Suvidha Portal.<\/span><\/p>\n<p class=\"ai-optimize-191\"><span style=\"font-weight: 400;\">For all employers, regardless of workforce type, the risks are significant:<\/span><\/p>\n<ul>\n<li class=\"ai-optimize-192\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A large number of workers implies that the same systematic mistake is committed when making numerous payrolls<\/span><\/li>\n<li class=\"ai-optimize-193\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High turnover means exit settlements (now required within 2 working days under the Industrial Relations Code) are a constant compliance task<\/span><\/li>\n<li class=\"ai-optimize-194\" style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash-based wages are being replaced by mandatory digital transfers, creating an audit trail that authorities can monitor in real time<\/span><\/li>\n<\/ul>\n<p class=\"ai-optimize-195\"><span style=\"font-weight: 400;\">The cost of non-compliance adds up fast. A 30-50 employee business making three or four common payroll errors can face \u20b95-20 lakh in annual penalties across five separate authorities: EPFO, ESIC, Income Tax Department, Labour Department, and State PT Authority.<\/span><\/p>\n<h2 class=\"ai-optimize-196\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-197\"><span style=\"font-weight: 400;\">In 2026, it will be harder than ever for all employers, not just those managing factory workers or daily wage staff. The new Labour Codes, higher fines, and digital enforcement through the SHRAM Suvidha Portal have gotten rid of the grey areas that many employers used to use.<\/span><\/p>\n<p class=\"ai-optimize-198\"><span style=\"font-weight: 400;\">This guide\u2019s payroll compliance checklist covers every major obligation from pre-payroll registrations to annual returns, with special emphasis on the rules that apply to daily wage workers, contract labour and multi-state operations. Use it on each pay period. Make it part of your payroll process. And if your current system doesn\u2019t support digital record-keeping, automatic wage calculations, and statutory filings, it\u2019s time to upgrade.<\/span><\/p>\n<h2 class=\"ai-optimize-6\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"ai-optimize-7\"><style>#sp-ea-13273 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-13273.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-13273.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #444;}#sp-ea-13273.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-13273.sp-easy-accordion>.sp-ea-single {background: #eee;}#sp-ea-13273.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1779864572\"><div id=\"sp-ea-13273\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_a_payroll_compliance_checklist_and_do_I_need_one_even_if_I_only_have_salaried_office_employees\"><\/span><a class=\"collapsed\" id=\"ea-header-132730\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse132730\" aria-controls=\"collapse132730\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> What is a payroll compliance checklist, and do I need one even if I only have salaried office employees? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse132730\" data-parent=\"#sp-ea-13273\" role=\"region\" aria-labelledby=\"ea-header-132730\"> <div class=\"ea-body\"><p>Yes, indeed, the compliance checklist is applicable to all organizations regardless of the nature of the workforce. Even a fully salaried office workforce carries obligations around EPF, ESI, TDS, Professional Tax, bonus, and gratuity, all of which must be filed, deposited, and documented correctly.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Does_ESI_apply_to_daily_wage_and_contract_workers\"><\/span><a class=\"collapsed\" id=\"ea-header-132731\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse132731\" aria-controls=\"collapse132731\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Does ESI apply to daily wage and contract workers?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse132731\" data-parent=\"#sp-ea-13273\" role=\"region\" aria-labelledby=\"ea-header-132731\"> <div class=\"ea-body\"><p>Yes. Where the monthly salary of the employee does not exceed \u20b921,000 and the number of employees in your organisation becomes more than 10 by adding both direct and contractual employees, you must enrol them under the ESI scheme.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_the_penalty_for_paying_below_minimum_wage_in_India_in_2026\"><\/span><a class=\"collapsed\" id=\"ea-header-132732\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse132732\" aria-controls=\"collapse132732\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the penalty for paying below minimum wage in India in 2026?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse132732\" data-parent=\"#sp-ea-13273\" role=\"region\" aria-labelledby=\"ea-header-132732\"> <div class=\"ea-body\"><p>As per the Wages Act Code, 2019, a penalty of \u20b950,000 applies for the first offense of violating the minimum wage rules. However, the labor authority may instruct the employer to compensate the worker an amount equal to 10 times that which was owed to them.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_does_the_50_basic_wage_rule_affect_payroll_structure\"><\/span><a class=\"collapsed\" id=\"ea-header-132733\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse132733\" aria-controls=\"collapse132733\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How does the 50% basic wage rule affect payroll structure? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse132733\" data-parent=\"#sp-ea-13273\" role=\"region\" aria-labelledby=\"ea-header-132733\"> <div class=\"ea-body\"><p>Under the Code on Wages, which becomes applicable from November 2025, the sum of Basic Pay and Dearness Allowance should account for at least 50% of the gross wage amount. This increases the base upon which the EPF contribution will be made. The organisations that have deliberately kept the basic pay low in order to reduce the PF amount need to change their structure soon.<\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_long_must_payroll_records_be_kept\"><\/span><a class=\"collapsed\" id=\"ea-header-132734\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse132734\" aria-controls=\"collapse132734\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How long must payroll records be kept? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse132734\" data-parent=\"#sp-ea-13273\" role=\"region\" aria-labelledby=\"ea-header-132734\"> <div class=\"ea-body\"><p>All payroll records, such as, wage registers, attendance records, CLRA registers, statutory challans, and payslips, must be maintained for a minimum of 7 years. Certain acts require up to 10 years. Under the OSH Code 2020, digital maintenance is mandatory.<\/p><\/div><\/div><\/div><script type=\"application\/ld+json\">{ \"@context\": \"https:\/\/schema.org\", \"@type\": \"FAQPage\", \"@id\": \"sp-ea-schema-13273-6a1886925f73a\", \"mainEntity\": [{ \"@type\": \"Question\", \"name\": \"What is a payroll compliance checklist, and do I need one even if I only have salaried office employees? \", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Yes, indeed, the compliance checklist is applicable to all organizations regardless of the nature of the workforce. Even a fully salaried office workforce carries obligations around EPF, ESI, TDS, Professional Tax, bonus, and gratuity, all of which must be filed, deposited, and documented correctly.\" } },{ \"@type\": \"Question\", \"name\": \"Does ESI apply to daily wage and contract workers?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Yes. Where the monthly salary of the employee does not exceed \u20b921,000 and the number of employees in your organisation becomes more than 10 by adding both direct and contractual employees, you must enrol them under the ESI scheme.\" } },{ \"@type\": \"Question\", \"name\": \"What is the penalty for paying below minimum wage in India in 2026?\", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"As per the Wages Act Code, 2019, a penalty of \u20b950,000 applies for the first offense of violating the minimum wage rules. However, the labor authority may instruct the employer to compensate the worker an amount equal to 10 times that which was owed to them.\" } },{ \"@type\": \"Question\", \"name\": \" How does the 50% basic wage rule affect payroll structure? \", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"Under the Code on Wages, which becomes applicable from November 2025, the sum of Basic Pay and Dearness Allowance should account for at least 50% of the gross wage amount. This increases the base upon which the EPF contribution will be made. The organisations that have deliberately kept the basic pay low in order to reduce the PF amount need to change their structure soon.\" } },{ \"@type\": \"Question\", \"name\": \"How long must payroll records be kept? \", \"acceptedAnswer\": { \"@type\": \"Answer\", \"text\": \"All payroll records, such as, wage registers, attendance records, CLRA registers, statutory challans, and payslips, must be maintained for a minimum of 7 years. Certain acts require up to 10 years. Under the OSH Code 2020, digital maintenance is mandatory.\" } }] }<\/script><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"tmnf_excerpt\">Did you know that 67% of labour violations at registered Indian businesses are due to wrong wage ca\u2026<\/div>","protected":false},"author":6,"featured_media":13272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[159,268],"tags":[135,340],"class_list":["post-13270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-payroll","category-statutory-compliance","tag-payroll","tag-payroll-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.2 (Yoast SEO v26.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Payroll Compliance Checklist 2026: Labour Law, PF, ESI &amp; TDS<\/title>\n<meta name=\"description\" content=\"Avoid costly payroll mistakes in 2026. Use this payroll compliance checklist India guide covering PF, ESI, TDS, labour laws, and filings.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Complete Payroll Compliance Checklist India Employers Need in 2026\" \/>\n<meta property=\"og:description\" content=\"Avoid costly payroll mistakes in 2026. Use this payroll compliance checklist India guide covering PF, ESI, TDS, labour laws, and filings.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\" \/>\n<meta property=\"og:site_name\" content=\"TankhaPay\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/tankhapay\/\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-27T06:33:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-27T07:36:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"870\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Aishwarya Verma\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@TankhaPay\" \/>\n<meta name=\"twitter:site\" content=\"@TankhaPay\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Aishwarya Verma\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\"},\"author\":{\"name\":\"Aishwarya Verma\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#\/schema\/person\/7a3204459447ddbd9f4b733ff0bae883\"},\"headline\":\"Complete Payroll Compliance Checklist India Employers Need in 2026\",\"datePublished\":\"2026-05-27T06:33:47+00:00\",\"dateModified\":\"2026-05-27T07:36:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\"},\"wordCount\":1833,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg\",\"keywords\":[\"Payroll\",\"Payroll Compliance\"],\"articleSection\":[\"Payroll\",\"Statutory Compliance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\",\"url\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\",\"name\":\"Payroll Compliance Checklist 2026: Labour Law, PF, ESI & TDS\",\"isPartOf\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg\",\"datePublished\":\"2026-05-27T06:33:47+00:00\",\"dateModified\":\"2026-05-27T07:36:26+00:00\",\"description\":\"Avoid costly payroll mistakes in 2026. Use this payroll compliance checklist India guide covering PF, ESI, TDS, labour laws, and filings.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage\",\"url\":\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg\",\"contentUrl\":\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg\",\"width\":870,\"height\":600,\"caption\":\"Female HR executive managing payroll compliance checklist for Indian companies including PF, ESI, TDS, PT, and labour law requirements\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.tankhapay.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Complete Payroll Compliance Checklist India Employers Need in 2026\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#website\",\"url\":\"https:\/\/www.tankhapay.com\/blog\/\",\"name\":\"TankhaPay\",\"description\":\"All in one HR, Payroll &amp; Compliance Software\",\"publisher\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.tankhapay.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#organization\",\"name\":\"TankhaPay HRMS and Payroll Software\",\"alternateName\":\"All in one HR, Payroll & Compliance Software\",\"url\":\"https:\/\/www.tankhapay.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2024\/09\/tpay-logo.jpg\",\"contentUrl\":\"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2024\/09\/tpay-logo.jpg\",\"width\":200,\"height\":200,\"caption\":\"TankhaPay HRMS and Payroll Software\"},\"image\":{\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/tankhapay\/\",\"https:\/\/x.com\/TankhaPay\",\"https:\/\/www.linkedin.com\/company\/tankhapay\",\"https:\/\/www.youtube.com\/@tankhapay\",\"https:\/\/www.instagram.com\/tankhapay\/\"],\"email\":\"sales@akalinfo.com\",\"telephone\":\"9891988811\",\"legalName\":\"Akal Information Systems\",\"foundingDate\":\"2000-05-25\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"1001\",\"maxValue\":\"5000\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#\/schema\/person\/7a3204459447ddbd9f4b733ff0bae883\",\"name\":\"Aishwarya Verma\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.tankhapay.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/599536bcd93adde2315a7737da76280a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/599536bcd93adde2315a7737da76280a?s=96&d=mm&r=g\",\"caption\":\"Aishwarya Verma\"},\"url\":\"https:\/\/www.tankhapay.com\/blog\/author\/aakanksha\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Payroll Compliance Checklist 2026: Labour Law, PF, ESI & TDS","description":"Avoid costly payroll mistakes in 2026. Use this payroll compliance checklist India guide covering PF, ESI, TDS, labour laws, and filings.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/","og_locale":"en_US","og_type":"article","og_title":"Complete Payroll Compliance Checklist India Employers Need in 2026","og_description":"Avoid costly payroll mistakes in 2026. Use this payroll compliance checklist India guide covering PF, ESI, TDS, labour laws, and filings.","og_url":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/","og_site_name":"TankhaPay","article_publisher":"https:\/\/www.facebook.com\/tankhapay\/","article_published_time":"2026-05-27T06:33:47+00:00","article_modified_time":"2026-05-27T07:36:26+00:00","og_image":[{"width":870,"height":600,"url":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg","type":"image\/jpeg"}],"author":"Aishwarya Verma","twitter_card":"summary_large_image","twitter_creator":"@TankhaPay","twitter_site":"@TankhaPay","twitter_misc":{"Written by":"Aishwarya Verma","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#article","isPartOf":{"@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/"},"author":{"name":"Aishwarya Verma","@id":"https:\/\/www.tankhapay.com\/blog\/#\/schema\/person\/7a3204459447ddbd9f4b733ff0bae883"},"headline":"Complete Payroll Compliance Checklist India Employers Need in 2026","datePublished":"2026-05-27T06:33:47+00:00","dateModified":"2026-05-27T07:36:26+00:00","mainEntityOfPage":{"@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/"},"wordCount":1833,"commentCount":0,"publisher":{"@id":"https:\/\/www.tankhapay.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage"},"thumbnailUrl":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg","keywords":["Payroll","Payroll Compliance"],"articleSection":["Payroll","Statutory Compliance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/","url":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/","name":"Payroll Compliance Checklist 2026: Labour Law, PF, ESI & TDS","isPartOf":{"@id":"https:\/\/www.tankhapay.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage"},"image":{"@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage"},"thumbnailUrl":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg","datePublished":"2026-05-27T06:33:47+00:00","dateModified":"2026-05-27T07:36:26+00:00","description":"Avoid costly payroll mistakes in 2026. Use this payroll compliance checklist India guide covering PF, ESI, TDS, labour laws, and filings.","breadcrumb":{"@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#primaryimage","url":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg","contentUrl":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2026\/05\/payroll-compliance-checklist.jpg","width":870,"height":600,"caption":"Female HR executive managing payroll compliance checklist for Indian companies including PF, ESI, TDS, PT, and labour law requirements"},{"@type":"BreadcrumbList","@id":"https:\/\/www.tankhapay.com\/blog\/payroll-compliance-checklist\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.tankhapay.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Complete Payroll Compliance Checklist India Employers Need in 2026"}]},{"@type":"WebSite","@id":"https:\/\/www.tankhapay.com\/blog\/#website","url":"https:\/\/www.tankhapay.com\/blog\/","name":"TankhaPay","description":"All in one HR, Payroll &amp; Compliance Software","publisher":{"@id":"https:\/\/www.tankhapay.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.tankhapay.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.tankhapay.com\/blog\/#organization","name":"TankhaPay HRMS and Payroll Software","alternateName":"All in one HR, Payroll & Compliance Software","url":"https:\/\/www.tankhapay.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tankhapay.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2024\/09\/tpay-logo.jpg","contentUrl":"https:\/\/www.tankhapay.com\/blog\/wp-content\/uploads\/2024\/09\/tpay-logo.jpg","width":200,"height":200,"caption":"TankhaPay HRMS and Payroll Software"},"image":{"@id":"https:\/\/www.tankhapay.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/tankhapay\/","https:\/\/x.com\/TankhaPay","https:\/\/www.linkedin.com\/company\/tankhapay","https:\/\/www.youtube.com\/@tankhapay","https:\/\/www.instagram.com\/tankhapay\/"],"email":"sales@akalinfo.com","telephone":"9891988811","legalName":"Akal Information Systems","foundingDate":"2000-05-25","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"1001","maxValue":"5000"}},{"@type":"Person","@id":"https:\/\/www.tankhapay.com\/blog\/#\/schema\/person\/7a3204459447ddbd9f4b733ff0bae883","name":"Aishwarya Verma","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.tankhapay.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/599536bcd93adde2315a7737da76280a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/599536bcd93adde2315a7737da76280a?s=96&d=mm&r=g","caption":"Aishwarya Verma"},"url":"https:\/\/www.tankhapay.com\/blog\/author\/aakanksha\/"}]}},"_links":{"self":[{"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/posts\/13270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/comments?post=13270"}],"version-history":[{"count":6,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/posts\/13270\/revisions"}],"predecessor-version":[{"id":13280,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/posts\/13270\/revisions\/13280"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/media\/13272"}],"wp:attachment":[{"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/media?parent=13270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/categories?post=13270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tankhapay.com\/blog\/wp-json\/wp\/v2\/tags?post=13270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}