For employers in India · updated for the Labour Codes
Employer compliance checklist: EPF, ESIC, POSH and more
The main employer duties in one place, with the headcount at which each one starts and a link to the source. The four Labour Codes took effect on 21 November 2025.
The checklist
What applies, and from when?
Headcounts are per establishment unless noted. State rules (such as Shops & Establishment and professional tax) differ; the examples below are for Madhya Pradesh.
| Appointment letters | All workers. Every worker must be given an appointment letter.Source: Labour Codes (PIB) ↗ |
|---|---|
| Minimum and timely wages | All workers. Pay at least the minimum wage, on time. IT and ITES salaries by the 7th of each month.Source: Labour Codes (PIB) ↗ |
| Shops & Establishment | State law. In Madhya Pradesh, register your establishment on the Labour Department portal within 30 days of starting, and update changes within 7 days.Source: MP amendment, 2025 ↗ |
| Professional tax | State law. In Madhya Pradesh, employers register, deduct professional tax from salaries each month and pay it to the state. The maximum is ₹2,500 a year per employee.Source: MP Vritti Kar Adhiniyam, 1995 ↗ |
| ESIC | 10 or more employees. Voluntary below 10. Mandatory for even one worker in hazardous work.Source: Code on Social Security (PIB) ↗ |
| POSH | 10 or more employees at a workplace. Set up an Internal Committee with an external member, adopt a policy, display the penalties, run awareness sessions and file an annual report. Under 10, complaints go to the district’s Local Committee. How Manas sets this up for youSource: POSH Act ↗ |
| Gratuity | 10 or more employees. Payable after 5 years of continuous service. Fixed-term employees get it pro rata after 1 year.Source: First Schedule (Taxmann) ↗ · PIB ↗ |
| EPF | 20 or more employees. Register and contribute to the Employees’ Provident Fund for your employees.Source: Code on Social Security (PIB) ↗ |
| Bonus | 20 or more persons. At least 8.33% of wages or ₹100, whichever is higher, and at most 20%, for employees who worked at least 30 days in the year.Source: Code on Wages (Taxmann) ↗ |
| Maternity benefit | All women employees. Up to 26 weeks for women who worked at least 80 days in the previous 12 months. Establishments with 50 or more employees must provide a crèche, or a crèche allowance.Source: Code on Social Security (PIB) ↗ |
| POSH in the Board’s Report | Companies that are not “small companies”. Confirm your Internal Committee and, since 14 July 2025, state complaints received, disposed of and pending beyond 90 days. The penalty for leaving it out is ₹3 lakh for the company and ₹50,000 for each officer in default.Source: G.S.R. 357(E), 2025 ↗ · Companies Act s.134(8) ↗ |
· General information, not legal advice. Manas is not a law firm and works alongside your legal counsel.
The one most small firms miss
Paying ESIC? Check POSH today.
ESIC and POSH both start at 10 employees. Many firms that pay ESIC have never set up the Internal Committee that the POSH Act requires, and it has to exist before any complaint arrives.
Manas handles POSH only. For EPF, ESIC, wages and other labor-law filings, work with your CA or labor-law consultant.
Take the free 2-minute POSH committee check and see your gaps at once.
Questions
What do employers ask about compliance?
Do the new Labour Codes replace the POSH Act?
No. The four Labour Codes, in force from 21 November 2025, replaced 29 earlier labor laws such as the EPF, ESI and gratuity Acts. The POSH Act, 2013 is separate and still applies as before. Sources: PIB ↗ · POSH Act ↗.
We have 12 employees. What applies to us?
At 12 employees, ESIC, POSH and gratuity generally apply to the establishment, along with appointment letters, minimum and timely wages and your state’s Shops & Establishment and professional-tax rules. EPF and bonus start at 20.
Who can help with all of this?
Your CA or a labor-law consultant for EPF, ESIC, wages and state filings. Manas sets up and runs POSH compliance: the external member, policy, Internal Committee, portal and annual report.
We have 25 employees. What changes at 20?
At 20 or more employees, EPF registration and contributions apply, and so does the bonus under the Code on Wages: at least 8.33% of wages or ₹100, whichever is higher, and at most 20%, for employees who worked at least 30 days in the year. ESIC, POSH and gratuity already apply from 10.
What do employers in Madhya Pradesh register for?
Shops & Establishment registration on the Madhya Pradesh Labour Department portal within 30 days of starting, with changes updated within 7 days; and professional tax under the MP Vritti Kar Adhiniyam, 1995, deducted from salaries each month up to ₹2,500 a year per employee. Manas is based in Bhopal and handles POSH; for these filings, work with your CA.
