HR Compliance Guide
PF, ESIC, Professional Tax, gratuity, bonus and wages explained in simple words, with a monthly calendar and a new-joiner checklist. Updated October 2026.
Open calculatorAsk a question💰 1. Salary structure: the 50% rule
Under the Code on Wages, Basic + DA should be at least 50% of total pay. PF, ESIC and gratuity are all worked out on it.
Simple rule
- Basic = 50% of Gross, or the state minimum Basic if that is higher.
- The rest can be HRA and other allowances.
- Gujarat minimum Basic used on this site: ₹13,600.
Example: Gross ₹30,000
🏦 2. Provident Fund (EPF)
| Point | Detail |
|---|---|
| Applies to | Establishments with 20+ employees (voluntary below that) |
| Wage ceiling | ₹25,000 per month (raised from ₹15,000 on 17 Sep 2026) |
| Employee share | 12% of Basic + DA |
| Employer share | 12%: 8.33% to pension (EPS) and 3.67% to PF |
| Extra employer cost | EDLI and admin charges, about 1% (shown as 1% in the calculator) |
| Due date | 15th of the next month, with the ECR filed on the EPFO portal |
| Delay | Interest on late dues is 12% a year |
🩺 3. ESIC
| Point | Detail |
|---|---|
| Applies to | 10+ employees, wages up to ₹21,000 per month |
| Rates | Employee 0.75% and employer 3.25% |
| On this site | Counted on Basic + DA, and only when it is below ₹21,000 |
| Due date | 15th of the next month |
| Contribution periods | April to September and October to March |
| Benefits | Medical care, sickness, maternity, disablement and dependants' benefit |
🧾 4. Professional Tax and Labour Welfare Fund
Professional Tax
A state tax on salary. Delhi, Haryana, Rajasthan, UP, Uttarakhand and Himachal do not charge it. The national yearly cap is ₹2,500.
Gujarat: nil up to ₹12,000 gross, ₹200 a month above that.
Labour Welfare Fund
A small yearly or half-yearly contribution from employee and employer. It applies in many states, including Gujarat, and the amount and date differ by state. See the State section on the Home page.
🎁 5. Gratuity, bonus and wages
Gratuity
10+ employees. Paid after 5 years (1 year for fixed-term staff). Formula: last Basic + DA × 15 ÷ 26 × years. The maximum is ₹20 lakh.
Example: ₹20,000 × 15 ÷ 26 × 6 years = about ₹69,231.
Bonus
20+ employees. At least 8.33% of wages, up to 20% in a profitable year, paid within 8 months of the financial year end.
Wage payment
Monthly wages should be paid by the 7th of the next month. Give a payslip. Overtime is paid at twice the normal rate.
Other laws
POSH committee (10+ staff), maternity leave of 26 weeks for the first two children, and a creche at 50+ staff.
📅 6. Monthly compliance calendar
| When | What |
|---|---|
| By 7th | Pay salary of the previous month. Deposit salary TDS. |
| By 15th | PF and ESIC payment and returns |
| Monthly / state date | Professional Tax payment (date differs by state) |
| Quarterly | TDS salary return (Form 24Q) |
| Half-yearly / yearly | Labour Welfare Fund and annual bonus, as per your state |
✅ 7. New joiner checklist
Documents to collect
- Aadhaar, PAN and bank details
- Existing UAN, if any
- Passport photo and address proof
- Education and previous employer papers
What to give and register
- Appointment letter with the salary breakup
- UAN and PF Form 11
- ESIC insurance number, if eligible
- Attendance, wage register and payslip every month
❓ Frequently asked questions
Is PF compulsory for every employee?
Once your establishment has 20 or more employees, PF applies to staff earning up to the wage ceiling. New joiners above the ceiling can be left out.
Can I pay less than the state minimum Basic?
No. If 50% of Gross is lower than the minimum, raise Basic to the minimum. The calculator does this for you.
Is ESIC counted on Gross or Basic?
This site's calculator uses Basic + DA, and only when it is below ₹21,000. Check your ESIC office if you are unsure.
Which dates matter most?
The 7th for salary and TDS, and the 15th for PF and ESIC.
Where do I see the newest circulars?
On the Home page under Government circulars, or on the EPFO, ESIC and Ministry of Labour websites.