PF ESI TDS Compliance Mumbai — Employer Statutory Obligations 2026

PF ESI TDS Compliance Mumbai — Employer Statutory Obligations 2026

Every Mumbai employer with 20 or more employees faces a web of statutory obligations: EPF registration with EPFO, ESI registration with ESIC, Maharashtra Professional Tax deduction, and TDS (Tax Deducted at Source) under the Income Tax Act. Missing any of these creates exposure to inspections, penalties, and in serious cases, criminal liability for directors. For a city where labour inspectors are active and unions are organised, non-compliance is particularly risky.

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Statutory Compliance Requirements for Mumbai Employers

EPFO (Employee Provident Fund Organisation)
- Applicable: establishments with 20+ employees
- Employer contribution: 12% of basic salary
- Employee contribution: 12% of basic salary
- Employer portion split: 8.33% to EPS (Employee Pension Scheme), 3.67% to EPF
- Monthly challan: due by 15th of following month
- ECR (Electronic Challan cum Return): filed on EPFO Unified Portal
- EPFO Mumbai regional office: Bandra Kurla Complex — jurisdictional for most Mumbai companies

ESIC (Employee State Insurance Corporation)
- Applicable: establishments with 10+ employees where any employee earns below Rs. 21,000/month
- Employee contribution: 0.75% of gross salary
- Employer contribution: 3.25% of gross salary
- Monthly challan: filed on ESIC portal
- Half-yearly returns: May and November
- ESIC Mumbai regional office: Parel, Mumbai
- Employee benefits: medical treatment, sickness benefit, maternity benefit, disablement benefit

Maharashtra Professional Tax
- All employees in Maharashtra earning above Rs. 7,500/month
- Deduction schedule:
- Rs. 7,500 to Rs. 10,000/month: Nil (revised)
- Above Rs. 10,000/month: Rs. 200/month (Rs. 300 in February)
- Annual PT = Rs. 2,500 per employee per year
- Monthly deposit to Maharashtra government
- Annual return: Form III B
- PT registration: Maharashtra tax authority

TDS (Tax Deducted at Source)
- TDS on salary: Section 192 — based on income tax slab
- TDS on professional/contractual services: Section 194J — 10%
- TDS on contract work: Section 194C — 1% individual, 2% company
- TDS on rent above Rs. 50,000/month: Section 194-IB — 5%
- Monthly TDS payment: by 7th of following month
- Quarterly TDS returns: Form 26Q (non-salary), Form 24Q (salary)
- Form 16: issued to employees by June 15
- Form 16A: issued to vendors from whom TDS deducted

Maharashtra Shops and Establishments Act
- Annual renewal of Shop Act registration for all Mumbai commercial establishments
- Maintenance of registers: employee register, attendance, wages
- Timely payment of wages: salary by 7th of following month for 1,000+ employee establishments

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Common Compliance Failures in Mumbai Businesses

- PF deducted but not deposited: most serious — employees' retirement savings at risk, criminal liability
- ESI not registered: when crossing 10-employee threshold — many Mumbai startups unaware
- PT not deducted: Maharashtra tax department audits, demand with penalty
- TDS return not filed: Section 271H penalty — Rs. 200/day
- Form 16 not issued: employee complaint to income tax department

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MICS Statutory Compliance Services for Mumbai

Monthly Compliance (Done by MICS)
- Payroll processing: salary calculation with all deductions
- PF challan: generated and filed by 15th
- ESI challan: filed by 15th
- PT challan: Maharashtra PT deposited monthly
- TDS payment: by 7th — no interest penalty

Quarterly
- TDS return Form 26Q: vendor TDS
- TDS return Form 24Q: salary TDS

Annual
- Form 16 generation for all employees
- EPFO annual return
- Maharashtra PT annual return
- Bonus computation (Payment of Bonus Act)

Registrations (One-Time Setup)
- EPFO registration
- ESIC registration
- Maharashtra PT registration
- Shop Act registration
- Labour welfare fund registration

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Pricing

| Service | Monthly Cost |
|---|---|
| PF + ESI + PT compliance (up to 25 employees) | Rs. 5,000 |
| PF + ESI + PT + TDS (up to 50 employees) | Rs. 8,000 |
| Full HR compliance (up to 200 employees) | Rs. 15,000 |
| Registration (all statutory — one-time) | Rs. 15,000 |
| Arrears and rectification | Rs. 10,000-30,000 |

Free compliance consultation for Mumbai employers: +91 9355273535 | admin@mics.asia