Updated 16 October 2026. Use this checklist to test whether your establishment’s coverage decisions, payroll, filings and records are supported by current rules. It is a risk-based review aid, not a statement that every item applies to every employer. Start by documenting the activity, location, workforce and period being audited.
1. Establishment coverage and registrations
- List every establishment, worksite, business activity and responsible employer entity.
- Record headcount by site and worker category, including contractor and fixed-term arrangements.
- Document which Central, Kerala, local-body and sector-specific laws apply, with the threshold and source used.
- Check that required registrations and licences match the current employer name, address, activity and coverage date.
- Maintain a change log for new sites, changes in headcount, mergers, closures or changes in business activity.
2. EPF and pension controls
- Check establishment coverage and each employee’s membership history.
- Confirm that UAN/member records are linked correctly and duplicates are investigated.
- Review the contribution wage basis, date-specific wage ceiling and EPS eligibility for the period.
- Compare employee-level payroll calculations to the monthly ECR, acknowledgement and payment proof.
- Reconcile ECR totals to the payroll ledger and resolve rejected filings or differences.
- Check that nominations, exits and member-data changes follow the current EPFO process.
3. ESIC controls
- Document the establishment’s ESIC coverage and the eligibility decision for each relevant employee.
- Verify insured-person records and use an existing insurance number when an employee changes jobs.
- Reconcile contribution wages and employee/employer contributions to payroll, the monthly ESIC record and challan.
- Review employee access to e-Pehchan information and benefit guidance without treating the card as proof of every benefit entitlement.
- Check accident reporting, benefit support and record retention against current ESIC rules and portal instructions.
4. Kerala Professional Tax and welfare funds
- Identify the local body responsible for Professional Tax registration, assessment and payment.
- Check half-yearly income and the revised Kerala slab schedule effective 1 October 2024: nil up to ₹11,999; then ₹320, ₹450, ₹600, ₹750, ₹1,000 and ₹1,250 across the published bands.
- Verify the local body’s current due dates, return requirements and payment channel; the state online service is not available for every local body.
- Determine separately whether the establishment is covered by the Shops and Commercial Establishments Workers’ Welfare Fund Board, Kerala Labour Welfare Fund Board or another sectoral board.
- Reconcile the applicable board’s employee set, contribution calculation, period and payment proof; do not transfer one board’s rate to another.
5. Payroll, tax and employee records
- Trace a sample of employees from approved appointment terms and attendance through earnings, deductions, bank payment and payslip.
- Check that taxable salary, EPF wages, ESIC contribution wages and Kerala half-yearly PT are not treated as one common base.
- Review salary changes, leave without pay, overtime, variable pay, reimbursements and exit settlements for approval and evidence.
- For salary-TDS events from 1 April 2026, verify use of the Income-tax Act, 2025 and Form 138 (earlier Form 24Q) where applicable.
- Compare tax deposits and quarterly statements to employee-level TDS calculations and portal acknowledgements.
- Retain each record for the period required by its applicable statute, rule, scheme and tax period; do not apply a blanket retention period.
6. Working time, safety and employee protections
- Check working hours, weekly rest, overtime, leave and holidays against the rules applicable to the site and employee category.
- For safety-regulated activities, review risk assessments, training, incident reporting, medical or fitness evidence and licence conditions required for that work.
- Where the POSH Act applies, verify Internal Committee composition, member training, complaint handling safeguards and reporting duties.
- Check that employee policies are communicated and match actual payroll and workplace practice.
- Keep confidential employee and POSH records access-controlled and limit copies to staff who need them.
7. Tax-year and rule-change controls
The four Labour Codes took effect on 21 November 2025. Central rules and implementing instructions have continued to be published in 2026, while State and sector requirements must be checked with the appropriate government. Salary-TDS events from 1 April 2026 use the Income-tax Act, 2025 framework. Version every checklist, payroll formula and form by effective date so earlier periods are assessed under the rules that governed them.
8. Findings and follow-up
For each issue, record the requirement and source, period tested, employee/site affected, evidence, risk, cause, corrective action, owner and target date. Separate a confirmed breach from a missing document or an unresolved applicability decision. Do not publish or apply a penalty amount until the specific provision, dates and any extension have been checked.
Primary sources: Ministry of Labour: Labour Codes, Kerala Labour Commissionerate updates, EPFO, ESIC, Income Tax Department: Form 138, Kerala LSGD Profession Tax FAQ and Kerala welfare boards.
For a current overview, see our Kerala HR compliance guide, payroll management guide and recordkeeping guide. For employer-specific audit support, contact GHR Consultancy.