Statutory Compliance Rules & Rates

The rates, wage limits, thresholds and deadlines Indian employers refer to most often, in one place. Each figure is explained in more detail in the Knowledge Hub.

Provident Fund (EPF)

ItemPosition
Employee contribution12% of PF wages
Employer contribution12% of PF wages (8.33% to pension, subject to the pension wage ceiling)
Statutory wage ceiling₹15,000 per month
Coverage threshold20 or more employees (lower for notified classes)
Monthly due date15th of the following month

A reduced 10% rate applies to certain notified classes of establishment.

Employees' State Insurance (ESI)

ItemPosition
Employee contribution0.75% of wages
Employer contribution3.25% of wages
Wage limit for coverage₹21,000 per month (₹25,000 for employees with disability)
Contribution periodsApril–September and October–March
Monthly due date15th of the following month

Professional Tax — West Bengal

Monthly gross salaryTax per month
Up to ₹10,000Nil
₹10,001 – ₹15,000₹110
₹15,001 – ₹25,000₹130
₹25,001 – ₹40,000₹150
Above ₹40,000₹200
Annual professional tax cannot exceed ₹2,500 per person in any state.

Bonus and gratuity

ItemPosition
Bonus — eligibility wage limit₹21,000 per month
Bonus — calculation ceiling₹7,000 per month or minimum wage, whichever is higher
Bonus — minimum / maximum8.33% / 20% of wages for the accounting year
Bonus — payment deadlineWithin 8 months of the accounting year end
Gratuity — eligibility5 years continuous service (waived on death or disablement)
Gratuity — formulaLast drawn basic + DA × 15 ÷ 26 × completed years
Gratuity — statutory ceiling₹20,00,000
Gratuity — payment deadlineWithin 30 days of becoming payable

Coverage thresholds

LawTypical threshold
EPF & MP Act, 195220 or more employees
ESI Act, 194810 or more employees in a notified area (20 in a few states)
Factories Act, 194810 with power / 20 without power
Payment of Gratuity Act, 197210 or more employees
Payment of Bonus Act, 196520 or more employees
CLRA Act, 1970Threshold notified by the state, commonly 20 contract workmen
State notifications can vary these thresholds — confirm the position for your state.

Recurring due dates

ObligationFrequencyDue date
PF ECR and paymentMonthly15th of the following month
ESI contribution and returnMonthly15th of the following month
Professional tax depositMonthlyAs notified by the state
Labour Welfare FundHalf-yearly / annualAs notified by the state
CLRA contractor returnHalf-yearlyAs prescribed by the applicable rules
Factories Act annual returnAnnualAs prescribed by state rules

Last Updated: 2026-09-06
Information is based on applicable laws, rules, notifications and government sources and should be verified for the latest amendments.

Need help with this compliance?

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