E-learning
Your comprehensive resource for labour law and compliance knowledge across India.
Structured, state-wise information designed for HR teams, compliance officers, and
business owners.
29+
States Covered
100+
Compliance Acts
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Updates
Introduction
The Pragnaa Knowledge Center serves as a structured repository of labour law and compliance information for organisations operating across India. This resource is designed to support HR teams, compliance officers, and business owners in understanding statutory requirements at both central and state levels.
India’s labour law framework is governed by a combination of central legislation and state-specific rules. With the introduction of the four new Labour Codes, organisations must stay informed about changing compliance requirements across different jurisdictions. This Knowledge Center provides state-wise breakdowns of key compliance areas to help you maintain regulatory adherence.
Each section below covers a specific compliance domain with definitions, applicable states, and relevant statutory provisions.
Abstract
Understanding the foundation of India’s labour law framework and its state-wise variations.
- Definition
Labour law in India comprises central and state legislation governing employment relationships, worker welfare, working conditions, and industrial relations. The framework has been consolidated under four Labour Codes replacing 29 existing laws. State governments retain authority to frame rules specific to their jurisdictions.
- States
- Key Acts
- The Code on Wages, 2019
- The Industrial Relations Code, 2020
- The Code on Social Security, 2020
- The Occupational Safety, Health and Working Conditions Code, 2020
- Shops and Establishments Act (State-specific)
- Contract Labour (Regulation and Abolition) Act, 1970
- Payment of Gratuity Act, 1972
- Employees' Provident Funds and Miscellaneous Provisions Act, 1952
Leave Eligibility & Working Hours
Statutory provisions for leave entitlements and working hour regulations across states.
- Definition
Leave eligibility refers to the statutory entitlements of employees to various types of leave including earned leave, casual leave, sick leave, and maternity leave. Working hours are regulated under the Factories Act, Shops and Establishments Acts, and the new OSH Code.
Leave Eligibility & Working Hours
- Daily limit: 8-9 hours (varies by state)
- Weekly limit: 48 hours
- Spread over: Not exceeding 10.5 hours
Overtime Provisions
- Rate: Double the ordinary wage rate
- Maximum: 50 hours per quarter (Factories)
- Prior permission required in most states
Leave Categories
- Earned Leave: 15-21 days annually
- Casual Leave: 7-12 days annually
- Sick Leave: 7-12 days annually
- Maternity Leave: 26 weeks (first two children)
- Applicable States
Leave and working hour provisions apply across all states with variations in specific entitlements under respective Shops and Establishments Acts.
- Maharashtra: 21 days earned leave after 240 days of work
- Karnataka: 18 days earned leave after 12 months
- Delhi: 15 days earned leave per year
- Tamil Nadu: 12 days earned leave per year
Holiday List
National and state holidays applicable to establishments across India..
Holiday lists comprise national holidays mandated by the Central Government and state-specific holidays declared by respective State Governments. Establishments must observe national holidays and are guided by state notifications for additional holidays.
Leave Eligibility & Working Hours
Overtime Provisions
Each state declares 10-15 additional holidays based on regional festivals and observances. Establishments must refer to the annual gazette notifications issued by respective State Labour Departments.
- Definition
- Applicable States
National holidays are mandatory across all states and union territories. State-specific holidays vary by jurisdiction.
Holiday List
Establishments operating across multiple states must maintain state-wise holiday calendars. Employees working on holidays are entitled to compensatory leave or wages at applicable rates as per state rules
Typical State Holiday Categories
- Religious festivals (Diwali, Eid, Christmas, Pongal)
- Regional New Year celebrations
- State formation days
- Birth anniversaries of regional leaders
Compliance Calendar
Statutory deadlines for labour law filings, returns, and renewals.
The Compliance Calendar outlines statutory deadlines for contributions, returns, renewals, and filings mandated under central and state labour laws. Timely compliance avoids penalties, interest charges, and legal proceedings.
Leave Eligibility & Working Hours
- Definition
Compliance requirements vary based on establishment location, employee count, and applicable labour laws in each state.
Penalty Notice
Late filing attracts penalties ranging from ₹5,000 to ₹1,00,000 depending on the nature of default and applicable statute. Continued non-compliance may result in prosecution.
State-Specific Variations
- Maharashtra: LWF due by 15th January
- Karnataka: PT due by 20th of each month
- Tamil Nadu: PT due by 30th of each month
- Applicable States
Professional Tax
State-wise applicability of professional tax on employers and employees.
Professional Tax (PT) is a state-level tax levied on income earned through profession, trade, calling, or employment. It is deducted from employee salaries by employers and remitted to the state government. The maximum amount is capped at ₹2,500 per annum as per the Constitution.
Key Points
- Maximum limit: ₹2,500 per annum
- Employer and employee both liable
- Deducted from monthly salary
- Deductible under Section 16 of IT Act
Slab Examples
- Up to ₹15,000: Nil
- ₹15,001 - ₹20,000: ₹150/month
- Above ₹20,000: ₹200/month
- *Slabs vary significantly by state
- Applicable States
States where Professional Tax is levied on employers and employees.
- Not Applicable
States and UTs where Professional Tax is not currently levied
Labour Welfare Fund
State-wise employer and employee contributions to the Labour Welfare Fund.
- Definition
The Labour Welfare Fund (LWF) is a statutory contribution made by employers, employees, and in some states, the government. It is used to provide housing, medical, educational, and recreational facilities to workers and their dependents.
Contribution Structure
- Employee contribution: ₹6 - ₹25 per month
- Employer contribution: ₹12 - ₹75 per month
- Varies significantly by state
Sample Rates
- Maharashtra: ₹6 (EE) + ₹18 (ER) per half-year
- Karnataka: ₹20 (EE) + ₹40 (ER) per year
- Gujarat: ₹6 (EE) + ₹12 (ER) per half-year
- Tamil Nadu: ₹10 (EE) + ₹20 (ER) per half-year
Deposit Frequency
Annual or half-yearly depending on state regulations
States where Professional Tax is levied on employers and employees.
Annual or half-yearly depending on state regulations
- Applicable States
States and UTs where Professional Tax is not currently levied
Annual or half-yearly depending on state regulations
- Not Applicable
Minimum Wages
State-wise minimum wage rates across different employment categories.
- Definition
Minimum wages are the statutory floor wages that employers must pay to workers in scheduled employments. Under the Code on Wages, 2019, both Central and State governments can fix and revise minimum wages. Rates vary by state, industry, skill level, and zone (metropolitan, urban, rural).
Wage Categories
Indicative ranges – actual rates vary by state and industry
Sample Rates
- Basic wage component
- Variable Dearness Allowance (VDA)
- Special allowances (if applicable)
- Applicable States
Minimum wages are applicable across all states and union territories. Each state notifies wages for scheduled employments within its jurisdiction.
Revision Frequency
Minimum wages are revised periodically, typically every 6 months to 2 years, based on the Consumer Price Index and cost of living.
Compliance Requirements
- Maintain wage registers
- Issue pay slips to employees
- Display minimum wage rates at workplace
- File returns as required by state rules
Gazette Notifications
Official government updates, amendments, and regulatory changes affecting labour law compliance.
Gazette notifications are official government publications that announce new laws, amendments, rules, and orders. They serve as the authoritative source for regulatory changes affecting labour law compliance
Types of Notifications
- Minimum wage revisions
- New rules and amendments
- Holiday declarations
- Exemption orders
- Compliance deadlines
Sources
- Gazette of India (Central)
- State Gazette publications
- Ministry of Labour circulars
Recent Notifications
Pragnaa monitors gazette notifications across all states and provides timely updates to help organisations stay compliant. Subscribe to receive notification alerts relevant to your operational states.
- Compliance Solution
Pragnaa Compliance Tool
A comprehensive compliance management platform designed to help organisations track,
manage, and maintain statutory compliance across all operational locations.
Pragnaa Compliance Tool integrates with your existing HR and payroll systems, providing
seamless compliance management without disrupting your workflows.
Compliance Reminders
Automated alerts for upcoming deadlines across PF, ESI, PT, LWF, and other statutory filings.
Document Management
Centralized repository for compliance documents, registers, and returns with version control.
Audit Trail
Complete history of compliance activities with timestamps and user accountability..
Dashboard Analytic
Real-time visibility into compliance status across all locations and entities.
Multi-State Support
Manage compliance for establishments across multiple states from a single platform
Configurable Workflows
Customize approval workflows and escalation matrices as per your organization structure..