Industry · IT & ITES
Compliance for IT and ITES companies
An IT or ITES company carries one set of central obligations, and a separate set for every state it hires in. We register each office under its state's law and run PF, ESI and Professional Tax on each state's calendar.
- Shops & Establishments for each office
- PF and ESI by the 15th
- Professional Tax state by state
- Night shifts and exemptions
Three layers of rules
One office, three layers of rules
Some obligations are the same in every state. Some change at the state border. Some belong to the office itself, at its own address. A new office in a new state adds to the second and third layers, never the first.
Set by the Centre
The same in every state
PF and ESI
Due by the 15th of the following month, on the Labour Codes' definition of wages.
Appointment letters
Required for every employee, setting out the job, the wages and social security.
The wage definition
Excluded allowances above half of total pay are added back for PF, gratuity and bonus.
TDS on salaries
Deposited by the 7th of the following month, with Form 130 (earlier Form 16) for each employee.
Set by each state
Different at every border
Shops & Establishments
Registration or an intimation, by the state's thresholds, often within about 30 days of opening.
Professional Tax
Registration in each state that levies it, with that state's slabs and due dates.
Labour Welfare Fund
Small fixed contributions, paid yearly or half-yearly, depending on the state.
Minimum wages
Notified by the state, and never below the floor wage set by the Centre.
Kept at each office
At its own address
The S&E certificate
It records the address, headcount and working hours, and is displayed at the office.
Registers and returns
Kept current for the office, month by month.
Abstracts and notices
Displayed where employees can read them.
Contractors on the premises
Housekeeping, security or canteen staff supplied by a contractor, with their records checked.
What applies
What an IT company has to keep in order
Eight obligations that reach most offices, with the law behind each and the service that handles it.
Shops & Establishments
State Shops and Establishments Act
Each office registers, or files an intimation, depending on the state's thresholds and its headcount. Renewal, amendment and closure follow the same law.
PF and ESI
Code on Social Security, 2020
EPF applies from 20 employees and ESI from 10. ESI covers employees earning up to ₹21,000 a month, so increments need watching.
Professional Tax and LWF
State laws
Registered, deducted and paid in each state that levies them, at that state's rates and on its calendar.
Wages under the Codes
Code on Wages, 2019
Excluded allowances cannot exceed half of total pay. The excess is added back as wages for PF, gratuity and bonus.
TDS on salaries
Income-tax law
Tax deducted from salaries is deposited by the 7th of the following month, reported every quarter and certified in Form 130 (earlier Form 16).
Women on night shifts
OSH Code, 2020
Women may work before 6 a.m. and after 7 p.m. with their consent, on conditions the government prescribes. The employer arranges safety, facilities and transport.
Weekly rest and overtime
OSH Code, 2020
No worker works more than six days in a week. Overtime needs the worker's consent and is paid at twice the rate of wages.
POSH Internal Committee
POSH Act, 2013
Every workplace with 10 or more employees must constitute an Internal Committee. We help you set it up.
Services that apply
The services an IT company uses
Each card opens the service page with the full scope and the questions employers ask.
PF & ESI compliance
PF and ESI challans by the 15th, UAN and IP numbers, PT in every state.
Licences & registrations
Shops & Establishments registration, renewal, amendment and closure for each office.
Labour law compliance
Registers, returns and notices for each office, and the POSH committee.
Payroll services
Payroll on your pay structure, with PF, ESI, PT and LWF in the same run.
TDS compliance
TDS on salaries deposited by the 7th, quarterly statements and Form 130.
Labour Codes advisory
Salary structures checked against the 50% rule on exclusions.
Common risks
Where IT companies usually slip
Most gaps appear when the company grows: a new state, a new office, a pay revision or a new contractor.
A new state, no PT registration
Hiring in a new state brings that state's Professional Tax registration and deduction rules from the first salary.
Our Professional Tax review checks your registration in every state you operate in.
PF & ESI complianceAn office opened, never registered
Many states expect S&E registration, or an intimation, within about 30 days of starting business. Missing it can bring fines and trouble with bank accounts and other licences.
We check applicability against the state's thresholds, then register the office or file the intimation.
Licences & registrationsA pay structure that fails the 50% rule
Excluded allowances above half of total pay are added back as wages. A structure built on a low basic can under-pay PF, gratuity and bonus every month.
We review structures against the Codes and work out the cost of the revised wage definition.
Labour Codes advisoryAn increment nobody followed through
A pay revision can raise PF wages, take an employee past the ₹21,000 ESI limit and move them into a different Professional Tax slab.
Revisions are carried through every statutory line in the month they take effect.
Payroll servicesContract staff in the office, unchecked
When housekeeping, security or canteen staff come through a contractor and their wages are paid late or short, you pay the balance as principal employer.
We check each contractor's wages, PF and ESI under our contractor and vendor compliance service.
Contractor & vendor compliance
Working with us
One team for every office
Your relationship manager knows each office, its state and its calendar, so a new location starts on the right footing.
- Employees under our compliance management
- 3,500+
- Challans and returns filed every month
- 300+
- Client retention
- 85%
- Year we started, in Bengaluru
- 2007
We work from our head office in Rajajinagar, Bengaluru, for employers across India, including Hyderabad, Mumbai and Gurgaon. We reply within two working hours.
FAQ
Questions about IT and ITES compliance
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
Does an IT company need a Shops and Establishments registration?
In nearly all states, yes. An office is a commercial establishment under the state's Shops and Commercial Establishments Act, and it must register or send an intimation, depending on the state's thresholds. Each office is assessed against the law of the state it sits in.
Which states' Professional Tax do you handle?
Every state where you have employees and that levies Professional Tax. Slabs, deduction months and due dates differ from state to state, so we apply each state's own rules and file its returns on its own calendar.
Can women employees work night shifts?
Under the OSH Code, women may work before 6 a.m. and after 7 p.m. with their consent. The government prescribes the conditions on safety, holidays and working hours, and the employer arranges safety, facilities and transport. States are still notifying their rules, so we check the conditions in each state where you run night shifts.
How do the Labour Codes affect salary structures?
The Code on Wages caps excluded allowances at half of total pay and adds the excess back to wages. Where basic pay is a small share of salary, the base for PF, gratuity and bonus can rise. We work out the effect before you restructure.
Do you run payroll and TDS as well?
Yes. We run payroll on your pay structure with PF, ESI, PT and LWF worked out in the same run. TDS on salaries is deposited by the 7th of the following month, the quarterly statements are filed and employees receive Form 130 (earlier Form 16).
We have offices in three states. Can one team handle all of them?
Yes. We serve employers across India from our head office in Bengaluru, including Hyderabad, Mumbai and Gurgaon. Each office is registered under its own state's law and runs on that state's calendar, and every client has a dedicated relationship manager.
What does it cost?
It depends on the number of offices, the states they are in and your headcount. Send us an enquiry with those details and we will come back with a quote.
Enquiry
Talk to a compliance expert
Share your states and headcount, and we will get back to you within 2 working hours.
- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
