February 2026 Labour Law Checklist for Indian Employers
- Feb 2
- 4 min read
Updated: Feb 3
February 2026 has become the most compliance-sensitive month for Indian employers. With the full enforcement of the Unified Annual Return (Form III) under the New Labour Codes, labour law compliance in India is now AI-driven, data-verified, and unforgiving of inconsistencies.
The February 2026 Labour Law Checklist is no longer just a reminder of deadlines. It is a framework that determines whether your organisation passes compliance automatically or receives a system-generated notice.
February 2026 Labour Law Checklist: What HR Must File on Time
What is the February 2026 Labour Law Checklist?
The February 2026 Labour Law Checklist is a mandatory set of statutory filings that Indian employers must complete in February, including Unified Annual Return (Form III), PF, ESIC, Professional Tax, TDS, and Labour Welfare Fund.
In 2026, these filings are digitally cross-verified using payroll and contribution data, and mismatches can trigger automated compliance notices without human review.
What Changed in Labour Law Compliance in 2026?
From 2026 onward, labour law compliance has shifted from document submission to data consistency.
The government’s compliance systems now verify:
Monthly EPFO & ESIC contributions
Annual wage declarations
Overtime limits
Minimum wage adherence
All filings are validated through the Shram Suvidha Portal, which uses automated discrepancy detection.
This means:
Late filing is risky
Incorrect data is even riskier
Unified Annual Return (Form III): Meaning and Applicability
What is Form III?
Form III is the Unified Annual Return introduced under the New Labour Codes. It consolidates multiple legacy labour law filings into a single annual submission, covering:
Payment of Wages Act
Minimum Wages Act
Contract Labour (R&A) Act
Maternity Benefit Act
Payment of Bonus Act
Why Form III is high-risk in February 2026
Because Form III is unified, any mismatch between :
Monthly payroll records
EPF/ESIC ECR filings
Annual gross wage totals
can automatically generate a Notice for Discrepancy.
February 2026 Statutory Due Dates Calendar (India)
Compliance Requirement | Deadline | Applicable Law |
TDS Deposit | February 7 | Income Tax Act |
PF & ESIC Contribution | February 15 | EPF & MP Act / ESI Act |
Professional Tax (Gujarat, MP) | February 15 | State PT Laws |
Professional Tax (Maharashtra, Karnataka) | February 20 | State PT Laws |
Unified Annual Return (Form III) | February 28 | New Labour Codes |
Labour Welfare Fund (Kerala, Tamil Nadu) | February 28 | State LWF Acts |
February 28 is the highest-risk date, as multiple systems validate compliance simultaneously.
State-Wise Compliance Risks Employers Must Watch
Maharashtra and Karnataka
Maharashtra Professional Tax: February includes a higher PT deduction to complete the annual ₹2,500 cap.
Karnataka Labour Welfare Fund: Employer contribution deadlines fall in late January or early February, with interest penalties for delays.
West Bengal and Tamil Nadu
Revised minimum wages effective January 1, 2026
Filing annual returns with outdated wage data can trigger automated underpayment audits
State-wise non-alignment is one of the most common reasons for inspections in 2026.
Digital Audits and the Inspector-cum-Facilitator Model
In 2026, labour inspections are digital-first.
During audits, employers must instantly produce:
Form A – Muster Roll (including GPS-based attendance, where applicable)
Form B – Register of Wages (with compliant basic pay structure)
Form D – Attendance Card (digitally accessible to employees)
Failure to generate these registers on demand may result in immediate non-compliance tagging.
How HRMS Automation Reduces Compliance Risk in 2026?
Manual filing increases the probability of:
Data entry errors
Inconsistent records
Missed state-specific rules
Automated compliance systems reduce these risks by synchronizing payroll, attendance, and statutory data.
How Zfour Supports February Compliance
Auto-populates Form III using payroll and attendance data
Runs pre-submission checks for wage and contribution mismatches
Flags overtime and minimum wage risks before filing
Enables faster, more accurate statutory submissions
Automation shifts compliance from last-minute filing to continuous readiness.
Penalties for Missing February 2026 Labour Law Deadlines
Non-compliance can result in:
Monetary penalties starting from ₹50,000 per establishment
Interest on delayed contributions
Increased inspection frequency
Compliance risk during funding, audits, and tenders
In an AI-verified environment, errors are detected instantly—not months later.
February 2026 Is a Compliance Stress Test
February 2026 represents a turning point in Indian labour law compliance. Employers who rely on manual processes face higher audit and penalty risks, while organizations using structured, data-driven systems gain operational and legal confidence.
The February 2026 Labour Law Checklist is no longer optional guidance.
It is a business-critical requirement.
Stay Compliant This February. Automate Your Labour Law Filings
Frequently Asked Questions
1. Why does Maharashtra have higher Professional Tax deductions in February?
Maharashtra applies a higher Professional Tax deduction in February to complete the annual ₹2,500 cap per employee. Employers must account for this adjustment in February payroll to avoid short deductions and compliance issues.
2. What is the Labour Welfare Fund deadline in Karnataka for 2026?
In Karnataka, the Labour Welfare Fund (LWF) employer contribution must be paid by late January or early February. Delays attract interest penalties, which continue until the contribution is deposited.
3. How do revised minimum wages affect West Bengal and Tamil Nadu in 2026?
West Bengal and Tamil Nadu implemented revised minimum wages effective January 1, 2026. Employers must update payroll immediately, as filing annual returns with outdated wage data can trigger automated underpayment audits.
4. Can state-wise wage or tax mismatches lead to inspections?
Yes. In 2026, labour compliance systems use AI-based cross-verification. Any mismatch between state-specific rules, payroll data, and annual returns can automatically flag an establishment for inspection or notice issuance.
5. Why is state-wise non-alignment a major compliance risk in February 2026?
State-wise non-alignment is one of the top reasons for inspections in 2026 because laws like Professional Tax, Labour Welfare Fund, and minimum wages vary by state. February filings bring these differences into focus during unified annual return verification.
ZFour HRMS
India’s Best Workforce Compliance Solution
February 2026 Labour Law Checklist | Unified Annual Return Form III 2026 | Labour Law Compliance February 2026 | Shram Suvidha Annual Return Guide | Professional Tax February Deadline Maharashtra | Karnataka Labour Welfare Fund Due Date 2026 | Minimum Wages Revision 2026 India | State Wise Labour Law Compliance India | Labour Law Penalties for Employers 2026 | HR Compliance Calendar February 2026.
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