Payroll Compliance Checker

Mandatory: PF for 20+ employees (12% employer + 12% employee on basic), ESI for 10+ employees with salary below ₹21,000 (3.25% employer + 0.75% employee), TDS deduction on salary as per IT slab, minimum wages per state quarterly notifications, payment within 7th of following month, and Form 16 issuance by 15th June annually.

Tamil Nadu minimum wages are notified quarterly by the Labour Department. Current rates (2026): unskilled ₹350–400/day, semi-skilled ₹400–450/day, skilled ₹500–600/day, highly skilled ₹650–800/day. Always verify latest notification at labour.tn.gov.in as rates are revised periodically. Paying below minimum wage is a criminal offence.

PF registration is mandatory when any establishment employs 20 or more employees (including contractual and temporary). Once registered, PF continues even if employees fall below 20. Registration must be obtained within 30 days of crossing the threshold. Penalty: interest at 12–25% per annum on dues plus ₹5,000 per day default charge.

Prevention of Sexual Harassment (POSH) Act mandates: Internal Complaints Committee (ICC) for establishments with 10+ employees, annual awareness training for all staff, ICC annual report to District Officer, and policy display at workplace. Non-compliance penalty: ₹50,000 for first offence. Repeat offence: licence cancellation. Every employer must comply — no exceptions.

Bonus is mandatory for establishments with 20+ employees paying salary up to ₹21,000 per month. Minimum bonus: 8.33% of salary (or ₹100, whichever is higher). Maximum: 20% of salary. Payable within 8 months of financial year end (before 30th November). For loss-making establishments, minimum bonus of 8.33% is still mandatory from the 4th year of establishment.