Payroll compliance refers to adhering to laws and regulations related to employee compensation, Professional Tax (PT), PF & ESIC contributions, Labour Welfare Fund (LWF) and other statutory obligations. It ensures that employers properly manage wages, deductions, and benefits in accordance with central and state-specific labour laws. Maintaining payroll compliance helps companies avoid penalties, fines, and legal issues, while also protecting employee rights.

“Payroll compliance management services are provided by external companies that specialize in payroll processing and compliance. These services typically include:

• Payroll Services: Obtain/amend EPF, ESI, & EPT codes. Generation of UAN & Monthly Statutory Challans
• Statutory Returns and Payments: Preparation and submission of EPT statutory returns & remittances of payments
• Record Maintenance: Maintenance of payroll records, registers & handling notices and inspections
• Extended Support to Employees: Monthly statutory challan generation & KYC updation for employees. Online PF helpdesk to resolve queries for employees”

PF compliance refers to fulfilling all statutory obligations under the new Labour Code that has subsumed the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It ensures that eligible employees receive long-term social security benefits through proper PF deductions, employer contributions, and timely filings.

PF compliance is essential for preventing legal penalties, maintaining employee trust, and ensuring seamless statutory governance.

ESI compliance covers all statutory responsibilities under the new Labour Codes that has subsumed the Employees’ State Insurance Act, 1948, which provides medical and financial protection to employees. Organisations must ensure correct contributions, timely filings, and accurate employee data reporting.

ESI compliance management includes:

• Monthly ESI contribution calculations and remittances aligned with the new ‘wages’ definition of the labour codes
• Employee registration and data updation
• Preparing and maintaining statutory returns and records as per the new codes
• End-to-end support during ESIC inspections

Proper ESI compliance safeguards both employee welfare and organisational credibility.

Employees covered under the ESIC scheme must follow guidelines related to eligibility, contributions, and benefit utilisation. Key ESIC rules include:

• Employees earning wages within the prescribed limit must be mandatorily registered under ESIC.
• Both employer and employee must contribute at notified statutory rates.
• Employees must update personal details and family dependents to access benefits.
• ESIC benefits can be availed only at authorised hospitals and dispensaries.
• Employees must not misuse ESIC benefits or provide incorrect information.

Following these rules ensures smooth access to medical, disability, maternity, and other ESIC benefits.

PF compliance charges refer to the statutory payments and administrative expenses associated with managing Provident Fund obligations. These include:

• Employer PF Contribution (12% of wages for eligible employees)
• Administrative Charges, depending on statutory guidelines
• Inspection or audit-related costs, where applicable
• Damages and penalties, only if an establishment delays or defaults on contributions

With professional payroll compliance support, organisations can avoid unnecessary penalties and manage PF compliance efficiently and transparently.

A professional tax compliance audit reviews your organization’s PT registration status, monthly/annual return filings, and payment records across every state you operate in, since professional tax rates, slabs, and due dates vary by state.

Aparajitha’s audit process identifies gaps in PT deductions, late filings, or missed state-specific obligations before they trigger penalties, and folds the findings into your ongoing payroll compliance management so corrections are actioned, not just flagged.