Does the 50% wage rule apply separately to fixed pay and variable pay, or is it calculated on total annual CTC?

The 50% rule under Section 2(y) of the Code on Wages applies to the total remuneration received by the employee, which includes both fixed and variable components. The calculation is not restricted to fixed pay alone. When assessing whether basic wages meet the 50% floor, the denominator is the total remuneration: salary, allowances, and variable pay combined. If an employee's total CTC is ₹20 lakhs including a ₹4 lakh annual variable, basic wages must be at least ₹10 lakhs. The rule is applied on the total remuneration actually paid in the relevant wage period. For practical payroll compliance, employers typically structure basic wages to be 50% or more of the fixed CTC component to ensure compliance in months when variable pay is not paid, and verify compliance on an annual basis including variable pay tranches.

How should banks treat sales incentives paid to branch sales staff? Are they wages for PF purposes?

The treatment of sales incentives for PF computation depends on their nature and regularity. Under EPF&MP Act jurisprudence confirmed by the Supreme Court in Bridge and Roof Co. Ltd (1963) and Manipal Academy (2018), wages for PF purposes include all emoluments that are earned by an employee in the course of employment and paid regularly. Sales incentives that are paid regularly and constitute a predictable part of remuneration are generally includible in PF wages. One-time or highly irregular special incentives tied to specific campaigns may fall outside. Under the Social Security Code, the new definition of wages in Section 2(zzp) mirrors the Code on Wages definition, which includes standard performance bonuses in remuneration for the 50% floor test. BFSI employers should assess each incentive plan individually: regularity, predictability, and whether it is tied to the ordinary duties of the role are the key parameters. Commission-based structures exceeding 15% of total wages are excluded, offering some relief for commission-heavy insurance sales roles.

Can a bank use fixed-term employment for employees hired to run a three-year digital transformation programme?

Yes. Fixed-Term Employment under the Industrial Relations Code is expressly designed for project-based engagements. A bank may hire a digital transformation team, a core banking system migration squad, or a regulatory technology implementation team under FTE contracts corresponding to the projected project duration. The IR Code requires: a written contract specifying the fixed term, entitlement to all statutory benefits on a pro-rata basis for terms exceeding one year, and notice equivalent to regular employment notice on non-renewal. The key safeguard is that the FTE must genuinely reflect a fixed-term project, not a mechanism to indefinitely avoid permanent employment. Where a project has extended organically beyond the original term and employees have continued to work, courts may look past the contractual label. For multi-year digital programmes, structure contracts for the programme phase (e.g., 18 months per phase) rather than the full programme duration, and conduct genuine reviews at renewal.

A private bank has branches in 14 states. Does it need separate Shops & Establishments registrations for every branch?

Yes. Every branch or office location is a separate "establishment" under the Shops & Establishments Act, and each state has its own legislation with its own registration requirements. A bank operating 200 branches across 14 states technically needs registrations for all 200 locations under the respective state laws. Some states permit a consolidated state-level registration for all branches in the state (for example, Maharashtra allows registration of head office with branches listed), but most states require individual premises-level registrations. The registration certificate must be displayed at the establishment. Each state also has its own compliance calendar for annual returns, working hour rules, holiday lists, and overtime limits. A bank should maintain a centralised branch compliance tracker, assign local compliance ownership to branch administration or regional HR, and use a compliance management platform to track renewals and return filings across all 14 states.

How does the gratuity ceiling increase to ₹25L affect banks' gratuity trust funding?

The proposed increase in the gratuity ceiling from ₹20 lakhs to ₹25 lakhs under the Social Security Code creates a direct funding gap in existing gratuity trusts and group gratuity insurance policies. The impact compounds because BFSI companies also face an increase in the wage base for gratuity calculation arising from the 50% wage rule restructuring. The combined effect can increase the actuarial liability by 25–35% for mid-to-senior level employees. Banks that maintain approved gratuity trusts must ensure the trust corpus covers the enhanced liability, as the Income Tax Act treats the differential between actuarial liability and trust corpus as a non-deductible expense if the trust is under-funded. Insurance-funded gratuity schemes must be renegotiated with the insurer to increase the sum assured. Actuarial valuations should be commissioned immediately using the ₹25L ceiling as the working basis, and the board's audit committee should be briefed on the revised provision required.

Does a digital lending NBFC that uses collections agents through a mobile app qualify as an aggregator?

The question turns on whether the NBFC's mobile platform functions as a "digital intermediary or marketplace" that connects service providers (collections agents) with buyers of the service (the NBFC seeking collections). If agents are engaged directly as employees or sole contractors of the NBFC without the platform functioning as a marketplace connecting multiple independent agents, the NBFC is likely an employer, not an aggregator. However, if the app functions as a marketplace where multiple independent agents register, receive work assignments, and are paid per-task through the platform, particularly where the NBFC does not exclusively deploy any individual agent, the aggregator characterisation is more likely. Most large digital lenders operate closer to the employer model for their core collections staff, but gig-model engagement for field verification, legal notice service, or asset inspection tasks can attract aggregator classification. A formal legal assessment of the engagement model and the platform's operational architecture is strongly recommended before the Social Security Code rules are notified.

What are the IR Code implications for public sector banks managing trade union recognition?

Public sector banks typically operate with multiple registered trade unions competing for members. Under the Industrial Relations Code's recognition framework, a union must represent at least 51% of workers in the establishment to qualify for recognition as the sole negotiating union. Where no single union meets the 51% threshold, a negotiating council comprising all unions with at least 20% membership is formed. For PSBs, this could consolidate collective bargaining, but it also triggers a formal recognition process that management must navigate carefully. Banks must: maintain accurate records of union membership, conduct a verification exercise (typically by a secret ballot administered by a designated authority) when recognition is disputed, recognise the qualifying union within 21 days of verification, and not take any action that could be construed as interference with the recognition process. Industrial action (strikes) under the IR Code requires 60 days' advance notice to management, significantly longer than the 14 days under the Industrial Disputes Act, which provides banks with greater time to prepare contingency staffing plans.

🏦

BFSI Sector Labour Compliance

Banks, NBFCs, Insurance & Fintech: India Labour Code Guide

Industry Guide16 min readLast updated: February 2026

7M+

Employees in Indian BFSI sector (direct employment)

₹25L

Proposed gratuity ceiling under Social Security Code (up from ₹20L)

1,50,000+

Bank branches across India requiring state-wise S&E compliance

50%

Minimum basic wage-to-CTC ratio mandated under Code on Wages

₹3.5L Cr

Indian insurance sector premium income (FY2024-25), driving compliance scale

300

Worker threshold for government permission before retrenchment under IR Code

Overview

India's Banking, Financial Services, and Insurance (BFSI) sector employs over 7 million people directly and is one of the most compliance-intensive industries under Indian labour law. The sector's defining characteristics (pan-India branch networks, performance-linked compensation architectures, large variable pay pools, significant use of fixed-term and contractual staff, and an expanding fintech layer built on gig and platform workers) make the four Labour Codes particularly consequential for BFSI employers.

The Code on Wages, 2019 strikes at the heart of BFSI compensation design. The sector has historically suppressed basic wages to 25–35% of CTC, loading remuneration into incentives, allowances, and variable pay to reduce statutory contribution bases. The 50% wage rule dismantles this architecture: any CTC where excluded components exceed 50% of total remuneration will have the excess deemed as wages, driving up PF, ESI, and gratuity bases across the entire workforce. For a sector where sales incentives and performance bonuses are structural, the interaction of variable pay with the 50% rule requires careful analysis at each pay band.

The gratuity ceiling under the Code on Social Security, 2020 is proposed to rise to ₹25 lakhs from the current ₹20 lakhs, with the ceiling expected to be notified upon enforcement. For long-tenure banking professionals, particularly branch managers, relationship managers, and senior risk officers who routinely serve 15–25 years, the higher ceiling meaningfully increases the employer liability per employee. Actuarial provisioning and gratuity trust funding must be recalibrated accordingly.

Multi-state branch operations create perhaps the most operationally demanding compliance challenge. A public sector bank with 5,000 branches across 28 states must track 28 different Shops & Establishments Act regimes, 28 sets of holiday lists, varying minimum wage schedules, and state-specific professional tax slabs simultaneously. Private banks and NBFCs with rapid network expansion face the same complexity. The Industrial Relations Code's higher threshold for government permission before retrenchment (300 workers) provides BFSI employers with meaningfully greater workforce flexibility than the previous 100-worker threshold under the Industrial Disputes Act.

The fintech segment introduces a distinct compliance layer. Payment aggregators, digital lending platforms, and insurance-tech companies engage collections agents, verification officers, and sales representatives under flexible, task-based arrangements. As platform workers, these individuals fall within the Social Security Code's new framework, and aggregator-status platforms face mandatory social security contributions once the relevant rules are notified. The Karnataka Platform-Based Gig Workers Act already imposes live obligations on qualifying BFSI-adjacent platforms operating in the state.

Code on Wages, 2019

Variable pay, sales incentives, and performance bonuses paid at a fixed rate are generally included in "remuneration" for the 50% calculation. BFSI employers cannot exclude standard annual bonuses or quarterly incentives when assessing compliance with the wage floor.
Commissions paid at a rate exceeding 15% of total wages are specifically excluded from the wage definition under Section 2(y), offering limited relief for pure commission-based sales roles in insurance agencies and bancassurance channels.
The Floor Wage notification under Section 9 will establish a national minimum below which even state minimum wages cannot fall. BFSI back-office roles, data entry operators, and entry-level branch staff in lower-cost states could be affected where wages currently sit at or near state minimums.
Multi-state minimum wage complexity is intensified for BFSI: banks and insurance companies operating across all states face 28+ different scheduled employment categories and wage revision cycles. The Code's rationalisation of categories into three skill bands (unskilled, semi-skilled, skilled) simplifies this progressively as states notify rules.
Full and final settlement must be completed within two working days of termination under the Code, imposing a tight operational deadline on BFSI HR teams handling large-scale exits during branch rationalisation or restructuring exercises.
Overtime wages at twice the ordinary rate apply to employees working beyond prescribed daily or weekly hours. Bank branch staff regularly working beyond contract hours face a systematic overtime liability if compensatory off is not structured correctly in the shift roster.

The 50% wage rule fundamentally restructures BFSI compensation design, which has historically relied on low basic wages and high variable/allowance components to minimise statutory costs. The sector must now ensure basic wages form at least 50% of total remuneration at every pay band, with direct upstream effects on PF, ESI, gratuity, and bonus liabilities.

BFSI CTC structures with basic pay at 25–35% of CTC (common across private banks, NBFCs, and insurance companies) will require wholesale restructuring. The PF contribution base increase alone could raise employer costs by 20–30% on the PF component for affected employees.

Industrial Relations Code, 2020

The retrenchment threshold rises from 100 to 300 workers before government permission is required. This is highly significant for BFSI: most bank branches and regional offices individually fall below 300 workers, giving managements meaningful flexibility for branch-level workforce adjustments without prior government sanction.
Fixed-Term Employment (FTE) is now a statutory category under Chapter XIII of the IR Code. BFSI employers can hire on fixed terms for project-based work (core banking migration teams, regulatory reporting projects, digital transformation initiatives) with full statutory benefits pro-rated but no conversion liability if the term is genuinely fixed.
FTE contracts are fully portable across entities within a corporate group, enabling internal secondments for project banking teams or insurance product launches without creating permanent employment liabilities.
Trade union recognition criteria are standardised under the IR Code: a union representing 51% of workers in an establishment must be recognised as the sole negotiating union. Public sector banks with multiple competing unions must navigate a mandatory recognition process that could reshuffle collective bargaining dynamics.
Grievance redressal through Works Committees is mandatory for establishments with 100+ workers. Banks and insurance companies must constitute Works Committees with employee and employer representatives and maintain grievance registers, a procedural obligation often overlooked in non-unionised private banks.
The two-tier tribunal structure (Industrial Tribunal and National Industrial Tribunal) streamlines dispute resolution, but BFSI employers should anticipate a surge in fresh filings in the initial enforcement period as the new framework is tested.

The IR Code's higher retrenchment threshold (300 workers), fixed-term employment framework, and rationalised trade union recognition provisions all have direct relevance for a sector that routinely manages workforce transitions, uses project-based contractual staff, and operates unionised workforces in public sector banks.

Fixed-Term Employment is the right instrument for BFSI project staffing: digital transformation teams, CBS migration projects, and regulatory implementation squads. FTE staff get proportionate statutory benefits but generate no conversion-to-permanent obligation, removing a major cost uncertainty from technology-driven projects.

Code on Social Security, 2020

The gratuity ceiling is proposed to increase to ₹25 lakhs under the Social Security Code, up from ₹20 lakhs under the Payment of Gratuity Act. For a senior bank officer with 20 years of service and last drawn basic wages of ₹1.2 lakh/month, the maximum payable gratuity moves from ₹20L to ₹25L, directly increasing actuarial liability. Gratuity trusts and insurance policies must be revised.
PF wage ceiling at ₹15,000/month for statutory minimum contributions is retained, but the definition of "wages" now includes components previously excluded by employer design. Post-50% rule restructuring, many mid-level BFSI employees whose restructured basic crosses ₹15,000/month will shift from minimum to actual-wage PF computation, unless the employer opts for contribution only on ceiling wages.
The maternity benefit period (26 weeks for two children) and crèche obligations under the Social Security Code are directly relevant to BFSI, where the workforce is approximately 35–40% women. Employers with 50+ employees must provide crèche facilities within a prescribed distance or reimbursement. Branch banking operations in Tier 2 and Tier 3 cities often lack nearby crèche facilities, necessitating reimbursement-based compliance.
Gig and platform workers in fintech (collections agents on digital lending apps, insurance verification agents on mobile platforms, and payment aggregator reconciliation staff) are covered under Chapter IX of the Social Security Code. Once central rules are notified, aggregator-status fintech entities must contribute 1–2% of annual turnover (capped at 5% of amounts paid to such workers) to the social security fund.
Karnataka's Platform-Based Gig Workers (Social Security and Welfare) Act, 2024 is already operative for qualifying fintech aggregators in the state. Digital lending and payment platforms with Karnataka operations must register with the Karnataka Welfare Board and deposit welfare fees on each booking/transaction value.
The ESIC wage ceiling of ₹21,000/month covers a substantial portion of BFSI's back-office, operations, and junior branch staff. Post-restructuring, employees whose revised basic wages increase to just below the ESI ceiling should be carefully tracked to avoid inadvertent breach of the ceiling threshold mid-year.

The Social Security Code introduces the proposed ₹25L gratuity ceiling, a consolidated PF/ESI framework, and, critically for fintech, the first statutory social security framework for gig and platform workers. BFSI employers must recalibrate actuarial provisioning, assess aggregator status for digital payment and lending platforms, and plan for the self-employed/unorganised social security extension.

KSK advises banks, NBFCs, and insurance companies on gratuity trust restructuring, actuarial provision recalibration, and fintech aggregator compliance. Our team has mapped the gig worker exposure for 15+ digital lending platforms and payment aggregators ahead of Social Security Code enforcement.

OSH Code, 2020

The OSH Code applies to establishments with 10+ employees (with registered trade union) or 20+ employees otherwise, and virtually every BFSI branch and office meets this threshold. Compliance obligations include providing adequate first-aid facilities, maintaining a sanitary and hygienic workplace, ensuring fire safety measures, and displaying a notice of rights in the prescribed form.
Maximum working hours are capped at 8 per day and 48 per week, with overtime permitted subject to a maximum of 125 hours per quarter and mandatory double-rate payment. BFSI organisations running extended hours during audit season, quarter-end closing, or IPO/bond issuance transactions routinely breach these thresholds and should establish formal overtime pre-approval and record-keeping processes.
The principal employer (bank, NBFC, or insurer) is jointly and severally liable for statutory obligations towards contract workers engaged through a contractor, including security staff, facility management workers, and data entry operators in back-office operations. This co-liability extends to PF, ESI, minimum wages, and any OSH Code violation by the contractor.
ATM cash replenishment teams working night shifts in high-risk security environments trigger specific obligations under the OSH Code. Night shift workers (9 pm to 6 am) must not be employed without adequate transport, a night shift differential policy, and enhanced security protocols under applicable state rules.
Welfare officers are mandatory for establishments with 500+ workers. Large bank head offices, insurance company campuses, and data centres with large operations teams must appoint qualified welfare officers and file annual welfare reports with the Chief Inspector.
Workplace accidents must be reported to the Inspector-cum-Facilitator within four hours (fatal) or 12 hours (serious injury). BFSI operations involving field collection staff, branch cash handling, and ATM maintenance expose the employer to reportable accident risk, making an incident reporting and investigation protocol essential.

The OSH Code introduces welfare officer obligations, updated working hour limits, and enhanced contractor and contract labour provisions directly affecting BFSI's large contractual workforce: security guards, housekeeping staff, ATM cash replenishment personnel, and outsourced operations teams.

Principal employer co-liability for contract workers under the OSH Code is the most common BFSI compliance gap. Conduct a contractor audit covering security vendors, facility management, ATM custodians, and data entry outsourcers to verify PF, ESI, and minimum wage compliance before OSH Code enforcement.

Compliance Checklist

Conduct a CTC restructuring audit across all pay bands to identify employees where basic wages are below 50% of total remuneration

highCode on Wages

Map variable pay, sales incentives, and annual bonuses against the Section 2(y) exclusion list to determine which components are included in the 50% wage base

highCode on Wages

Recalibrate gratuity actuarial valuation to reflect the proposed ₹25L ceiling and the revised wage base post-CTC restructuring

highSocial Security Code

Review and update gratuity trust deed and insurance policy sum insured to align with the revised ceiling and increased wage base

highSocial Security Code

Assess whether the company's fintech or digital lending platform qualifies as an "aggregator" under the Social Security Code and Karnataka Gig Workers Act

highSocial Security Code

Register with the Karnataka Platform-Based Gig Workers Welfare Board if the entity operates a digital intermediary platform in Karnataka

highSocial Security Code

Audit all branch and office locations for Shops & Establishments registrations and ensure every location has a current, valid S&E certificate displayed

highOSH Code

Build a multi-state compliance calendar covering S&E returns, professional tax payments, minimum wage revisions, and labour welfare fund contributions for every state of operation

highCode on Wages

Conduct a contractor audit covering security vendors, housekeeping, ATM cash management, and BPO outsourcers to verify PF, ESI, and minimum wage compliance and confirm principal employer co-liability is covered

highOSH Code

Review fixed-term employment contracts for project-based staff (digital transformation teams, CBS migration, regulatory projects) to ensure they comply with IR Code FTE requirements and include correct statutory benefit provisions

mediumIndustrial Relations Code

Implement an overtime pre-authorisation process and time-tracking system for branch and operations staff to cap overtime within the 125-hour quarterly limit

mediumOSH Code

Verify ESIC coverage eligibility for all employees earning below ₹21,000/month and confirm that post-restructuring, any increase in basic wages has not inadvertently breached or approached the ESI ceiling mid-year

mediumSocial Security Code

Check crèche obligation compliance for all establishments with 50+ employees: either provide crèche within prescribed distance or establish a reimbursement policy

mediumSocial Security Code

Constitute Works Committees for all bank branches and offices with 100+ workers, with elected employee representation, as mandated under the IR Code

mediumIndustrial Relations Code

Review commission structures for insurance agents and bancassurance channel staff and confirm commissions exceeding 15% of total wages are correctly excluded from the wage definition

mediumCode on Wages

Appoint welfare officers for establishments with 500+ employees (head offices, large data centres) and ensure annual welfare report filings are current

mediumOSH Code

Update payroll software to compute PF and ESI contributions on the revised wage base, and redesign salary slips to show the new component breakdown

mediumCode on Wages

Map trade union registrations at public sector bank branches under the IR Code recognition criteria and prepare for mandatory recognition proceedings where union membership exceeds 51%

mediumIndustrial Relations Code

Establish an incident reporting and investigation protocol for branch cash handling accidents, field collection injuries, and ATM maintenance incidents

lowOSH Code

Review and update employment contracts for night shift field staff (ATM replenishment, security) to include transport provisions and night shift differential as required under applicable state rules

lowOSH Code

Brief board and audit committee on the cumulative compliance cost impact of the four Labour Codes, including updated PF, ESI, gratuity, and overtime liabilities

lowCode on Wages

Common Pitfalls

Assuming variable pay is excluded from the 50% wage calculation

Risk

BFSI employers routinely structure CTC with low basic wages and high variable pay (quarterly incentives, annual performance bonuses, sales commissions) on the assumption that variable components can be excluded. Standard variable pay and performance bonuses are included in "remuneration" for the 50% floor test. Only commissions exceeding 15% of total wages qualify for exclusion. Employers who design CTC around variable exclusions will face non-compliance on notification of rules, with retrospective PF and ESI liability.

Fix

Categorise each CTC component individually against the Section 2(y) exclusion list. Treat standard performance bonuses, annual incentives, and quarterly variable pay as included in the 50% remuneration base. Only commission structures exceeding the 15% threshold qualify for exclusion. Restructure CTC so that basic wages meet the 50% floor even after including variable components in the denominator.

Single PAN-level compliance without branch-level S&E registrations

Risk

Banks and insurance companies with hundreds of branches frequently maintain a single corporate-level compliance register without ensuring that each branch location holds a valid Shops & Establishments Act registration in the relevant state. Inspector visits to branches routinely expose this gap. Non-display of the S&E registration certificate at the establishment attracts fines, and operating without registration is a substantive offence. Branch managers and regional HR heads are personally liable in some states.

Fix

Maintain a complete branch-wise registration register covering S&E certificate number, date of registration, renewal due date, and inspector jurisdiction for every location. Assign ownership to regional HR or local branch administration, with central HR oversight. Automate renewal alerts at 90, 60, and 30 days before expiry. Include S&E certificate display in periodic branch audit checklists.

Using fixed-term contracts without IR Code compliance provisions

Risk

BFSI companies engage technology consultants, project management staff, and regulatory compliance experts on fixed-term contracts sourced from generic templates that predate the IR Code. Fixed-Term Employment under the IR Code requires specific provisions: a written contract specifying the fixed period, entitlement to all statutory benefits (PF, ESI, gratuity, leave) on a pro-rata basis if the term exceeds one year, and non-renewal without notice equivalent to the notice period in regular employment. Non-compliant FTE contracts expose the employer to claims of permanent employment.

Fix

Adopt IR Code-compliant FTE contract templates with explicit fixed-period clauses, pro-rata benefit entitlements calculated from date of joining, and a stated non-renewal clause. For projects expected to exceed one year, structure the FTE contract with pro-rata gratuity provisions. Avoid rolling over FTE contracts consecutively without a genuine break in service, as cumulative periods may attract courts' scrutiny for deemed permanency.

Ignoring aggregator status for payment and digital lending platforms

Risk

Fintech subsidiaries of banks and NBFCs that operate as digital intermediaries (connecting collections agents with borrowers, verification officers with applicants, or insurance surveyors with claimants through a mobile app) may qualify as "aggregators" under the Social Security Code. Many BFSI entities have not formally assessed this exposure. On notification of central rules, unregistered aggregators face penalties, back contributions with interest, and potential prosecution of responsible officers.

Fix

Engage legal counsel to conduct an aggregator status assessment for each digital platform operated by the BFSI group. The key question is whether the platform functions as a "digital intermediary or marketplace" connecting service providers with consumers. If the assessment confirms aggregator status, begin pre-registration preparations: compile the list of gig workers, their Aadhaar details, payment history, and work nature. Register with the Karnataka Welfare Board immediately if the platform has Karnataka operations.

Failing to update gratuity provisioning after ceiling and wage base change

Risk

BFSI companies that calculate gratuity provisioning and actuarial valuations based on the current ₹20L ceiling and current wage structures will be materially under-provisioned once the Social Security Code is enforced. The double impact of the ceiling rising to ₹25L and the wage base rising due to CTC restructuring compounds the provisioning shortfall. Auditors are increasingly flagging inadequate gratuity provisioning as an audit qualification risk in BFSI balance sheets.

Fix

Commission an updated actuarial valuation after completing CTC restructuring, using the proposed ₹25L ceiling as the projected basis. Compare with the existing funded gratuity trust or insurance policy to quantify the funding gap. Plan additional contributions over 2–3 years to fund the gap. Update the accounting provision in the next financial year's accounts to reflect the revised basis, with appropriate disclosure in notes to accounts.

Overlooking principal employer liability for outsourced operations staff

Risk

The OSH Code imposes joint and several liability on principal employers (the bank or insurer) for statutory obligations including PF, ESI, and minimum wages owed by their contractors to contract workers. A BFSI company that outsources data entry, back-office processing, or security services to a contractor who fails to comply with labour laws is directly exposed. Regulatory inspections targeting the principal establishment can generate demand notices, PF shortfall assessments, and penalty orders against the bank, not just the contractor.

Fix

Include a detailed labour compliance warranty and audit rights clause in all outsourcing and contractor agreements. Require contractors to provide monthly proof of PF ECR filing, ESI contribution receipts, and salary payment to workers. Conduct annual contractor compliance audits. Withhold a compliance-linked retention amount from contractor payments, releasable only against satisfactory annual compliance certification. Register as principal employer under the CLRA wherever contractor worker count exceeds the threshold.

Frequently Asked Questions

Need BFSI Sector Labour Compliance Compliance Help?

KSK's Labour & Employment practice team can help you navigate the new labour codes and ensure full compliance across all states.

Talk to KSK Browse All Guides