Sep 23, 2025

10 min read

HR Compliance in India: Mandatory Government Policies Every Company Must Follow in 2025

HR Compliance in India: Mandatory Government Policies Every Company Must Follow in 2025

HR Compliance in India: Mandatory Government Policies Every Company Must Follow in 2025

Stay compliant in 2025 with this guide to India’s mandatory HR policies, covering wages, PF, ESI, POSH, gratuity, and maternity benefits with official sources.

Stay compliant in 2025 with this guide to India’s mandatory HR policies, covering wages, PF, ESI, POSH, gratuity, and maternity benefits with official sources.

Stay compliant in 2025 with this guide to India’s mandatory HR policies, covering wages, PF, ESI, POSH, gratuity, and maternity benefits with official sources.

Stay compliant in 2025 with this guide to India’s mandatory HR policies, covering wages, PF, ESI, POSH, gratuity, and maternity benefits with official sources.

Author

Clapsa Editorial Team
Green Fern
Green Fern
Green Fern
Green Fern

HR compliance in India is not just paperwork; it’s the law. Whether you’re a startup with 10 employees or an enterprise with 10,000, failing to comply with government-mandated HR policies can lead to penalties, lawsuits, and reputational harm.

In 2025, with the new Labour Codes being phased in and digital compliance portals becoming the norm, it’s more important than ever to know your obligations.

Here’s a complete breakdown of mandatory HR compliance policies in India — what they cover, who they apply to, and what you need to do as an employer.

HR compliance in India is not just paperwork; it’s the law. Whether you’re a startup with 10 employees or an enterprise with 10,000, failing to comply with government-mandated HR policies can lead to penalties, lawsuits, and reputational harm.

In 2025, with the new Labour Codes being phased in and digital compliance portals becoming the norm, it’s more important than ever to know your obligations.

Here’s a complete breakdown of mandatory HR compliance policies in India — what they cover, who they apply to, and what you need to do as an employer.

HR compliance in India is not just paperwork; it’s the law. Whether you’re a startup with 10 employees or an enterprise with 10,000, failing to comply with government-mandated HR policies can lead to penalties, lawsuits, and reputational harm.

In 2025, with the new Labour Codes being phased in and digital compliance portals becoming the norm, it’s more important than ever to know your obligations.

Here’s a complete breakdown of mandatory HR compliance policies in India — what they cover, who they apply to, and what you need to do as an employer.

Mandatory HR Compliance Policies in India (2025)


1) POSH (Prevention of Sexual Harassment) Policy

  • Policy Content: Protects women from sexual harassment at the workplace and prescribes complaint redressal mechanisms.

  • Applicable To: All organisations in India with 10 or more employees.

  • Eligibility: All women employees (permanent, temporary, interns, trainees, contract staff).

  • Employer Obligations:

    Draft and circulate a POSH policy.

    Form an Internal Complaints Committee (ICC).

    Conduct mandatory awareness and sensitisation training.

    File annual POSH compliance report (where applicable).

  • Legal Reference: POSH Act 2013 – DoE PDF

  • Last Updated: September 2025


2) Wages & Salary Compliance

  • Policy Content: Ensures timely payment of wages, no unauthorised deductions, and equal remuneration.

  • Applicable To: All companies operating in India.

  • Eligibility: All employees, regardless of wage level.

  • Employer Obligations:

    Pay wages on time (by the 7th/10th of the following month).

    Maintain wage registers and payslips.

    Avoid unlawful deductions.

  • Legal Reference: Code on Wages, 2019 – IndiaCode

  • Last Updated: September 2025


3) Minimum Wages Policy

  • Policy Content: Employers must pay at least the government-notified minimum wage.

  • Applicable To: All establishments employing workers in “scheduled employment.”

  • Eligibility: All employees (skilled, semi-skilled, unskilled).

  • Employer Obligations:

    Follow state-specific notifications for minimum wages.

    Revise wages whenever the government issues updates.

  • Legal Reference: Minimum Wages Act (now part of Code on Wages)

  • Last Updated: September 2025


4) Working Hours, Leave & Holidays

  • Policy Content: Governs work timings, overtime, weekly offs, and leave entitlements.

  • Applicable To: All businesses covered under state Shops & Establishments Acts.

  • Eligibility: All employees registered under the Act.

  • Employer Obligations:

    Register under the state’s Shops & Establishments Act.

    Provide weekly offs and leave entitlements.

    Maintain attendance and leave records.

  • Legal Reference: Maharashtra Shops & Establishments Act, 2017 (Example)

  • Last Updated: September 2025


5) Maternity Benefit Policy

  • Policy Content: Provides paid maternity leave and related benefits.

  • Applicable To: All establishments under the Maternity Benefit Act.

  • Eligibility: Women employees with at least 80 days of service in the preceding 12 months.

  • Employer Obligations:

    Provide 26 weeks of paid maternity leave.

    Allow work-from-home (if feasible).

    Provide a crèche facility if you employ 50+ employees.

  • Legal Reference: Maternity Benefit Act – Labour Ministry PDF

  • Last Updated: September 2025


6) Provident Fund (PF) Policy

  • Policy Content: Provides retirement savings and social security for employees.

  • Applicable To: Establishments with 20 or more employees.

  • Eligibility: Employees earning up to ₹15,000/month (higher-income employees can opt in voluntarily).

  • Employer Obligations:

    Deduct 12% of employee’s basic wages and match with employer contribution.

    Deposit contributions with EPFO monthly.

    File PF returns on EPFO portal.

  • Legal Reference: EPFO Official Site

  • Last Updated: September 2025


7) Employee State Insurance (ESI) Policy
  • Policy Content: Provides medical, sickness, and maternity benefits.

  • Applicable To: Establishments with 10 or more employees.

  • Eligibility: Employees earning up to ₹21,000/month.

  • Employer Obligations:

    Deduct and contribute to ESI fund.

    Register employees with ESIC.

    File monthly ESI contributions online.

  • Legal Reference: ESIC Official Site

  • Last Updated: September 2025


8) Gratuity Policy

  • Policy Content: Provides a lump sum to employees after long service.

  • Applicable To: Establishments with 10 or more employees.

  • Eligibility: Employees with 5 or more years of continuous service.

  • Employer Obligations:

    Calculate gratuity as per formula (15 days’ wages per year of service).

    Pay within 30 days of exit.

  • Legal Reference: Payment of Gratuity Act – Labour Ministry PDF

  • Last Updated: September 2025


9) Equal Opportunity & Non-Discrimination Policy

  • Policy Content: Ensures equal pay and fair treatment for all.

  • Applicable To: All employers in India.

  • Eligibility: All employees (including disabled workers).

  • Employer Obligations:

    Provide equal pay for equal work.

    Ensure non-discriminatory hiring and promotions.

    Make reasonable accommodations for disabled employees.

  • Legal Reference: Equal Remuneration Act PDF

  • Last Updated: September 2025


10) Industrial Relations & Termination Compliance

  • Policy Content: Governs layoffs, retrenchments, dispute resolution, and strikes.

  • Applicable To: Industrial establishments and larger companies.

  • Eligibility: Applies primarily to “workmen” as defined under the law.

  • Employer Obligations:

    Provide statutory notice and compensation for retrenchment.

    Follow due process in layoffs/closures.

    Maintain grievance redressal mechanisms.

  • Legal Reference: Industrial Disputes Act – Labour Ministry PDF

  • Last Updated: September 2025

Mandatory HR Compliance Policies in India (2025)


1) POSH (Prevention of Sexual Harassment) Policy

  • Policy Content: Protects women from sexual harassment at the workplace and prescribes complaint redressal mechanisms.

  • Applicable To: All organisations in India with 10 or more employees.

  • Eligibility: All women employees (permanent, temporary, interns, trainees, contract staff).

  • Employer Obligations:

    Draft and circulate a POSH policy.

    Form an Internal Complaints Committee (ICC).

    Conduct mandatory awareness and sensitisation training.

    File annual POSH compliance report (where applicable).

  • Legal Reference: POSH Act 2013 – DoE PDF

  • Last Updated: September 2025


2) Wages & Salary Compliance

  • Policy Content: Ensures timely payment of wages, no unauthorised deductions, and equal remuneration.

  • Applicable To: All companies operating in India.

  • Eligibility: All employees, regardless of wage level.

  • Employer Obligations:

    Pay wages on time (by the 7th/10th of the following month).

    Maintain wage registers and payslips.

    Avoid unlawful deductions.

  • Legal Reference: Code on Wages, 2019 – IndiaCode

  • Last Updated: September 2025


3) Minimum Wages Policy

  • Policy Content: Employers must pay at least the government-notified minimum wage.

  • Applicable To: All establishments employing workers in “scheduled employment.”

  • Eligibility: All employees (skilled, semi-skilled, unskilled).

  • Employer Obligations:

    Follow state-specific notifications for minimum wages.

    Revise wages whenever the government issues updates.

  • Legal Reference: Minimum Wages Act (now part of Code on Wages)

  • Last Updated: September 2025


4) Working Hours, Leave & Holidays

  • Policy Content: Governs work timings, overtime, weekly offs, and leave entitlements.

  • Applicable To: All businesses covered under state Shops & Establishments Acts.

  • Eligibility: All employees registered under the Act.

  • Employer Obligations:

    Register under the state’s Shops & Establishments Act.

    Provide weekly offs and leave entitlements.

    Maintain attendance and leave records.

  • Legal Reference: Maharashtra Shops & Establishments Act, 2017 (Example)

  • Last Updated: September 2025


5) Maternity Benefit Policy

  • Policy Content: Provides paid maternity leave and related benefits.

  • Applicable To: All establishments under the Maternity Benefit Act.

  • Eligibility: Women employees with at least 80 days of service in the preceding 12 months.

  • Employer Obligations:

    Provide 26 weeks of paid maternity leave.

    Allow work-from-home (if feasible).

    Provide a crèche facility if you employ 50+ employees.

  • Legal Reference: Maternity Benefit Act – Labour Ministry PDF

  • Last Updated: September 2025


6) Provident Fund (PF) Policy

  • Policy Content: Provides retirement savings and social security for employees.

  • Applicable To: Establishments with 20 or more employees.

  • Eligibility: Employees earning up to ₹15,000/month (higher-income employees can opt in voluntarily).

  • Employer Obligations:

    Deduct 12% of employee’s basic wages and match with employer contribution.

    Deposit contributions with EPFO monthly.

    File PF returns on EPFO portal.

  • Legal Reference: EPFO Official Site

  • Last Updated: September 2025


7) Employee State Insurance (ESI) Policy
  • Policy Content: Provides medical, sickness, and maternity benefits.

  • Applicable To: Establishments with 10 or more employees.

  • Eligibility: Employees earning up to ₹21,000/month.

  • Employer Obligations:

    Deduct and contribute to ESI fund.

    Register employees with ESIC.

    File monthly ESI contributions online.

  • Legal Reference: ESIC Official Site

  • Last Updated: September 2025


8) Gratuity Policy

  • Policy Content: Provides a lump sum to employees after long service.

  • Applicable To: Establishments with 10 or more employees.

  • Eligibility: Employees with 5 or more years of continuous service.

  • Employer Obligations:

    Calculate gratuity as per formula (15 days’ wages per year of service).

    Pay within 30 days of exit.

  • Legal Reference: Payment of Gratuity Act – Labour Ministry PDF

  • Last Updated: September 2025


9) Equal Opportunity & Non-Discrimination Policy

  • Policy Content: Ensures equal pay and fair treatment for all.

  • Applicable To: All employers in India.

  • Eligibility: All employees (including disabled workers).

  • Employer Obligations:

    Provide equal pay for equal work.

    Ensure non-discriminatory hiring and promotions.

    Make reasonable accommodations for disabled employees.

  • Legal Reference: Equal Remuneration Act PDF

  • Last Updated: September 2025


10) Industrial Relations & Termination Compliance

  • Policy Content: Governs layoffs, retrenchments, dispute resolution, and strikes.

  • Applicable To: Industrial establishments and larger companies.

  • Eligibility: Applies primarily to “workmen” as defined under the law.

  • Employer Obligations:

    Provide statutory notice and compensation for retrenchment.

    Follow due process in layoffs/closures.

    Maintain grievance redressal mechanisms.

  • Legal Reference: Industrial Disputes Act – Labour Ministry PDF

  • Last Updated: September 2025

Mandatory HR Compliance Policies in India (2025)


1) POSH (Prevention of Sexual Harassment) Policy

  • Policy Content: Protects women from sexual harassment at the workplace and prescribes complaint redressal mechanisms.

  • Applicable To: All organisations in India with 10 or more employees.

  • Eligibility: All women employees (permanent, temporary, interns, trainees, contract staff).

  • Employer Obligations:

    Draft and circulate a POSH policy.

    Form an Internal Complaints Committee (ICC).

    Conduct mandatory awareness and sensitisation training.

    File annual POSH compliance report (where applicable).

  • Legal Reference: POSH Act 2013 – DoE PDF

  • Last Updated: September 2025


2) Wages & Salary Compliance

  • Policy Content: Ensures timely payment of wages, no unauthorised deductions, and equal remuneration.

  • Applicable To: All companies operating in India.

  • Eligibility: All employees, regardless of wage level.

  • Employer Obligations:

    Pay wages on time (by the 7th/10th of the following month).

    Maintain wage registers and payslips.

    Avoid unlawful deductions.

  • Legal Reference: Code on Wages, 2019 – IndiaCode

  • Last Updated: September 2025


3) Minimum Wages Policy

  • Policy Content: Employers must pay at least the government-notified minimum wage.

  • Applicable To: All establishments employing workers in “scheduled employment.”

  • Eligibility: All employees (skilled, semi-skilled, unskilled).

  • Employer Obligations:

    Follow state-specific notifications for minimum wages.

    Revise wages whenever the government issues updates.

  • Legal Reference: Minimum Wages Act (now part of Code on Wages)

  • Last Updated: September 2025


4) Working Hours, Leave & Holidays

  • Policy Content: Governs work timings, overtime, weekly offs, and leave entitlements.

  • Applicable To: All businesses covered under state Shops & Establishments Acts.

  • Eligibility: All employees registered under the Act.

  • Employer Obligations:

    Register under the state’s Shops & Establishments Act.

    Provide weekly offs and leave entitlements.

    Maintain attendance and leave records.

  • Legal Reference: Maharashtra Shops & Establishments Act, 2017 (Example)

  • Last Updated: September 2025


5) Maternity Benefit Policy

  • Policy Content: Provides paid maternity leave and related benefits.

  • Applicable To: All establishments under the Maternity Benefit Act.

  • Eligibility: Women employees with at least 80 days of service in the preceding 12 months.

  • Employer Obligations:

    Provide 26 weeks of paid maternity leave.

    Allow work-from-home (if feasible).

    Provide a crèche facility if you employ 50+ employees.

  • Legal Reference: Maternity Benefit Act – Labour Ministry PDF

  • Last Updated: September 2025


6) Provident Fund (PF) Policy

  • Policy Content: Provides retirement savings and social security for employees.

  • Applicable To: Establishments with 20 or more employees.

  • Eligibility: Employees earning up to ₹15,000/month (higher-income employees can opt in voluntarily).

  • Employer Obligations:

    Deduct 12% of employee’s basic wages and match with employer contribution.

    Deposit contributions with EPFO monthly.

    File PF returns on EPFO portal.

  • Legal Reference: EPFO Official Site

  • Last Updated: September 2025


7) Employee State Insurance (ESI) Policy
  • Policy Content: Provides medical, sickness, and maternity benefits.

  • Applicable To: Establishments with 10 or more employees.

  • Eligibility: Employees earning up to ₹21,000/month.

  • Employer Obligations:

    Deduct and contribute to ESI fund.

    Register employees with ESIC.

    File monthly ESI contributions online.

  • Legal Reference: ESIC Official Site

  • Last Updated: September 2025


8) Gratuity Policy

  • Policy Content: Provides a lump sum to employees after long service.

  • Applicable To: Establishments with 10 or more employees.

  • Eligibility: Employees with 5 or more years of continuous service.

  • Employer Obligations:

    Calculate gratuity as per formula (15 days’ wages per year of service).

    Pay within 30 days of exit.

  • Legal Reference: Payment of Gratuity Act – Labour Ministry PDF

  • Last Updated: September 2025


9) Equal Opportunity & Non-Discrimination Policy

  • Policy Content: Ensures equal pay and fair treatment for all.

  • Applicable To: All employers in India.

  • Eligibility: All employees (including disabled workers).

  • Employer Obligations:

    Provide equal pay for equal work.

    Ensure non-discriminatory hiring and promotions.

    Make reasonable accommodations for disabled employees.

  • Legal Reference: Equal Remuneration Act PDF

  • Last Updated: September 2025


10) Industrial Relations & Termination Compliance

  • Policy Content: Governs layoffs, retrenchments, dispute resolution, and strikes.

  • Applicable To: Industrial establishments and larger companies.

  • Eligibility: Applies primarily to “workmen” as defined under the law.

  • Employer Obligations:

    Provide statutory notice and compensation for retrenchment.

    Follow due process in layoffs/closures.

    Maintain grievance redressal mechanisms.

  • Legal Reference: Industrial Disputes Act – Labour Ministry PDF

  • Last Updated: September 2025

Latest Updates for 2025

  • Labour Codes Implementation: The four labour codes (Wages, Social Security, Industrial Relations, OSH) are being phased in — employers must track both old acts and new codes.

  • Digital Compliance: Returns and filings must now be submitted online via EPFO, ESIC, and Shram Suvidha portals.


  • E-Shram Portal: Mandatory registration for unorganised and gig workers continues.

Latest Updates for 2025

  • Labour Codes Implementation: The four labour codes (Wages, Social Security, Industrial Relations, OSH) are being phased in — employers must track both old acts and new codes.

  • Digital Compliance: Returns and filings must now be submitted online via EPFO, ESIC, and Shram Suvidha portals.


  • E-Shram Portal: Mandatory registration for unorganised and gig workers continues.

Latest Updates for 2025

  • Labour Codes Implementation: The four labour codes (Wages, Social Security, Industrial Relations, OSH) are being phased in — employers must track both old acts and new codes.

  • Digital Compliance: Returns and filings must now be submitted online via EPFO, ESIC, and Shram Suvidha portals.


  • E-Shram Portal: Mandatory registration for unorganised and gig workers continues.

Conclusion

HR compliance is the backbone of running a lawful and trustworthy business in India. From POSH committees to PF contributions, every founder and HR manager must understand their responsibilities.

By following these 10 policies and tracking the new Labour Codes, you can keep your company safe, compliant, and employee-friendly.

Need help setting up compliance policies? Clapsa helps startups and companies simplify HR compliance and build strong workplaces.

Conclusion

HR compliance is the backbone of running a lawful and trustworthy business in India. From POSH committees to PF contributions, every founder and HR manager must understand their responsibilities.

By following these 10 policies and tracking the new Labour Codes, you can keep your company safe, compliant, and employee-friendly.

Need help setting up compliance policies? Clapsa helps startups and companies simplify HR compliance and build strong workplaces.

Conclusion

HR compliance is the backbone of running a lawful and trustworthy business in India. From POSH committees to PF contributions, every founder and HR manager must understand their responsibilities.

By following these 10 policies and tracking the new Labour Codes, you can keep your company safe, compliant, and employee-friendly.

Need help setting up compliance policies? Clapsa helps startups and companies simplify HR compliance and build strong workplaces.

FAQs

FAQs

Which HR compliance policies are mandatory for all Indian companies?

Which HR compliance policies are mandatory for all Indian companies?

Which HR compliance policies are mandatory for all Indian companies?

Which HR compliance policies are mandatory for all Indian companies?

Do these laws apply to startups?

Do these laws apply to startups?

Do these laws apply to startups?

Do these laws apply to startups?

How often should compliance policies be reviewed?

How often should compliance policies be reviewed?

How often should compliance policies be reviewed?

How often should compliance policies be reviewed?

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© All Right Reserved by Clapsa - 2025

Made in India

Ready to hire smarter?

Book a call to discover how Clapsa helps you find, hire, and retain top talent.

Get In Touch

Connect with us via our socials

Clapsa

Designed & Developed by Tangle

© All Right Reserved by Clapsa - 2025

Made in India

Ready to hire smarter?

Book a call to discover how Clapsa helps you find, hire, and retain top talent.

Get In Touch

Connect with us via our socials

Clapsa

Designed & Developed by Tangle

© All Right Reserved by Clapsa - 2025

Made in India

Ready to hire smarter?

Book a call to discover how Clapsa helps you find, hire, and retain top talent.

Get In Touch

Connect with us via our socials

Clapsa

Designed & Developed by Tangle

© All Right Reserved by Clapsa - 2025

Made in India