Labour Compliance

The Core Statutory Pillars Indian labour laws cover employee welfare, social security, and workplace safety. Most businesses must manage compliance across these primary acts: The Employees' Provident Funds (EPF) Act, 1952: Mandatory for establishments with 20 or more employees. Both the employer and employee contribute 12% of the basic salary toward retirement savings. The Employees' State Insurance (ESI) Act, 1948: Provides medical and cash benefits to employees earning below a specific monthly wage threshold (typically applies to factories and establishments with 10 or more workers). The Payment of Gratuity Act, 1972: Applies to entities with 10 or more employees. It mandates a lump-sum payment to workers who have rendered at least 5 years of continuous service upon their departure. The Professional Tax (PT): A state-level tax levied on professions and trades, deducted by the employer from the employee's salary and deposited with the respective state government.