Startup Compliance Checker: Which Labour, Payroll and HR Rules Apply in India

Startup Compliance India 12-Month Checklist 2026
Payroll & Labour Law
AS
Ankit Sarawagi|Founder, CFOmatrix·August 2026·7 min readPayroll & Labour Law

Every founder eventually asks the same question: which of India’s many labour and payroll laws actually apply to my company right now? The answer depends on three things: how many people you employ, which state you sit in, and how you are set up.

This free checker turns that into a two-minute answer. Enter your details and it shows exactly which registrations and filings you owe today, which switch on as you grow, and what to file where and by when. Below the tool you will find a full reference table and a plain-language guide to each rule.

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1 How the checker works

The tool maps your inputs to the statutory thresholds that trigger each obligation. A few examples of how the logic reads:

  • Headcount drives most triggers: POSH and Gratuity at 10, EPF and Bonus at 20.
  • The Rs 21,000 wage band decides ESI and who is eligible for statutory Bonus.
  • Your state decides Professional Tax, Labour Welfare Fund, and the exact Shops and Establishment rules.
  • Factory vs office switches the registration between the Factories Act and the Shops and Establishment Act.

Each result card links to a deep guide on how to register and file for that specific rule.

2 The applicability reference table

Here is the quick reference the tool is built on. Thresholds are current as of August 2026, and the state-specific rows vary by notification.

ComplianceApplies whenKey filingGuide
Shops & EstablishmentFrom day one (office / shop)Registration certificateRead →
EPF (Provident Fund)20+ employeesMonthly ECR by 15thRead →
ESI10+ and wage ≤ ₹21,000Monthly contribution by 15thRead →
Professional TaxState-wise (levying states)PTEC + PTRC returnsRead →
POSH Internal Committee10+ employeesAnnual report to District OfficerRead →
Gratuity10+ employeesForm A; pay on exit (5 yrs)Read →
Statutory Bonus20+ (factory 10+)Form D by 30 NovemberRead →
Maternity Benefit10+ (creche at 50+)Employer obligationRead →
Equal Opportunity (RPwD)Private 20+ employeesRegister policy; liaison officerRead →
Labour Welfare FundState-wiseHalf-yearly / annual contributionRead →
Contract Labour (CLRA)20+ contract workersRegistration + contractor licenceRead →
TDS on salaryAny taxable payrollForm 24Q quarterly; Form 16Read →

3 A note on the new Labour Codes

India’s four Labour Codes came into force on 21 November 2025, with rules rolling out through 2026. The change founders feel first is the “50% wage” rule: basic plus DA must be at least half of total pay, which raises PF and gratuity contributions and lowers take-home. Several thresholds above will be restated as the codes’ rules are notified, and this page and the tool are updated as that happens.

Watch outCrossing a headcount threshold has a start date, not a grace period. EPF at your 20th hire, POSH at your 10th: the obligation begins the day you cross, so run the checker before each hiring wave, not after.

Want this done for you?

CFOmatrix sets up and runs payroll and labour compliance for Indian startups, with a filing calendar mapped to your exact state and headcount.

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4 FAQs

Which compliances apply to a startup in India?

It depends on headcount, state and set-up. Common triggers: Shops and Establishment registration from day one, EPF at 20 employees, ESI at 10 with wages up to ₹21,000, POSH and Gratuity at 10, Bonus and the RPwD Equal Opportunity Policy at 20, and Professional Tax and Labour Welfare Fund in states that levy them. Run the checker above for your exact position.

At how many employees do POSH, EPF and ESI apply?

POSH Internal Committee and Gratuity apply at 10 employees. ESI applies at 10 where any employee earns ₹21,000 a month or less. EPF applies at 20. Statutory Bonus and the Equal Opportunity Policy apply at 20.

Does the checker cover state-specific rules?

Yes for the big ones: it flags Professional Tax and Labour Welfare Fund based on your state, and points Shops and Establishment to your state’s portal. Exact slabs and due dates vary by state notification, so confirm the specifics for your location.

Is this legal advice?

No. It is a general applicability indicator based on common statutory thresholds as of August 2026. The new Labour Codes and state notifications can change the position, so confirm your exact obligations with a professional before filing.
Sources: EPF & MP Act; ESI Act; Payment of Gratuity Act; Payment of Bonus Act; Maternity Benefit Act; POSH Act, 2013; RPwD Act, 2016; state Professional Tax, Labour Welfare Fund and Shops & Establishment Acts; the four Labour Codes (in force 21 November 2025). Thresholds verified as of August 2026; state-specific items vary by notification.
AS
Founder, CFOmatrix  |  Finance Strategy & Compliance

CFOmatrix helps Indian startups build finance, tax and compliance functions that stand up to investor due diligence, from process and controls to the filings and the numbers behind them.

Disclaimer: This page and tool provide general information as of August 2026 and are not legal or tax advice. Thresholds, state notifications and the Labour Codes can change. Confirm your specific obligations with a qualified professional before acting.

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