Maharashtra Labour Law Compliance Guide for Employers, 2026 Edition

India's four new Labour Codes, the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health & Working Conditions (OSH) Code, came into force on 21 November 2025, consolidating 29 central labour laws into four.

Here is what this means for Maharashtra employers:

• The Codes now sit above many existing Maharashtra state laws. Several state acts, including Shops & Establishments, Professional Tax administration, and the Labour Welfare Fund, continue to operate, but increasingly within the framework of the Codes.
• "Wages" is now defined uniformly: basic pay plus dearness allowance plus retaining allowance must add up to at least 50% of total remuneration, which changes PF, gratuity, and bonus calculations for most salary structures.
• Appointment letters are now mandatory for every employee.

A couple of practical notes: state rules under the four Codes are notified state by state, so what has changed in Maharashtra will not always match what has changed elsewhere. And if running payroll and attendance registers in-house isn't the best use of your team's time, a cloud HRMS with an attendance module can keep these records current automatically.

1. Maharashtra Professional Tax (PT)

The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 governs Professional Tax in the state.

Employee PT Slabs (Monthly)

Key points:

• Maximum annual PT is ₹2,500 per employee.
• Employers must register on the Maharashtra GST/PT portal.
• Monthly payment is due by the last day of the following month.
• Annual return filing is due within 60 days of the financial year end.
• Late payment attracts a penalty of ₹5 per day of default.
• Women earning up to ₹25,000 a month are exempt.

2. Maharashtra Labour Welfare Fund (MLWF)

Under the Maharashtra Labour Welfare Fund Act, 1953:

• Employee contribution: ₹25 per half-year, deducted from salary in June and December.
• Employer contribution: ₹75 per half-year per employee.
• Due dates: 30 June and 31 December.
• Applicable to all establishments with employees in Maharashtra.
• Payment is made through the Maharashtra LWF online portal.

3. Maharashtra Shops and Establishments Act, 2017

The new Act, which replaced the 1948 version, applies to every shop and commercial establishment in Maharashtra.

Registration

• Online registration is mandatory within 60 days of commencement.
• Registration is done through Maharashtra's online portal (mahaonline.gov.in).
• Registration is valid for the lifetime of the establishment, with no renewal needed under the new Act.

Working Hours

• Maximum of 9 hours a day and 48 hours a week.
• Overtime is paid at double the ordinary rate of wages.
• Women are allowed to work night shifts, with safety provisions in place.
• A weekly holiday is mandatory, whether that is Sunday or another day.

Leave Provisions

• Annual leave: 21 days for adults, after 240 days of work.
• Sick leave: as per company policy, with a minimum of 7 days recommended.
• National and festival holidays: as per the list published by the Maharashtra government.

4. Central Laws Applicable in Maharashtra

Employees' Provident Fund (EPF)

• Mandatory for establishments with 20 or more employees.
• Employer contribution: 12% of basic plus DA (3.67% EPF + 8.33% EPS).
• Employee contribution: 12% of basic plus DA.
• Admin charges: 0.50%, plus EDLI at 0.50%.
• Filing: ECR on the EPFO unified portal by the 15th of the following month.

Employees' State Insurance (ESI)

• Applicable to employees earning up to ₹21,000 a month (₹25,000 for employees with disabilities).
• Employer contribution: 3.25% of gross wages.
• Employee contribution: 0.75% of gross wages.
• Filing: through the ESIC portal by the 15th of the following month.

Statutory Bonus (Code on Wages, 2019)

• Applies to establishments with 20 or more employees.
• Employees earning up to ₹21,000 a month are eligible.
• Minimum bonus: 8.33% of wages earned, or ₹100, whichever is higher.
• Maximum bonus: 20%.
• The bonus is calculated on ₹7,000 a month or the applicable minimum wage, whichever is higher, not on the full salary.
• Payment is due within 8 months of the accounting year close, credited to the employee's bank account.

Payment of Gratuity Act

• Applicable to establishments with 10 or more employees.
• Payable after 5 years of continuous service.
• Formula: (last drawn salary × 15 × years of service) / 26.
• Maximum limit: ₹20,00,000.

Maharashtra isn't one compliance zone, it's several. A software company registered in Mumbai, a manufacturing unit in Pune's industrial belt, and a back-office operation in Nagpur all sit under the same state Acts, but the practical experience of staying compliant differs by city, by industry mix, and by how each municipal and district authority handles filings and inspections. Generic "Maharashtra rules" guidance misses this. Here is what actually varies on the ground.

Mumbai, Pune, and Nagpur: Different Compliance Realities

Mumbai is home to the largest concentration of corporate headquarters and financial services firms in the state, and consequently the busiest Professional Tax and Shops & Establishments filing volumes. Employers here deal with the Mumbai Labour Commissioner's office and MGSTD's Mumbai jurisdiction, both of which see high transaction volumes. Filing accuracy and timeliness matter more here simply because scrutiny and query volumes are higher.

Pune carries a distinct profile shaped by its dense IT/ITES corridor alongside a large manufacturing and auto-ancillary base, often within the same industrial park. This mix means Pune employers frequently need to run two different compliance postures side by side: office-style Shops & Establishments compliance for tech and services staff, and factory-floor OSH Code obligations, covering working hours, safety, and contract labour, for manufacturing employees, sometimes within the same company.

Nagpur and the Vidarbha region operate under the same state framework but with a different administrative rhythm: regional labour offices, lower filing volumes, and in practice more room for local variation in how inspections and queries are handled compared to Mumbai or Pune. Companies expanding into Nagpur for cost or talent reasons should expect the compliance obligations to be identical on paper but the on-the-ground relationship with local authorities to matter more.

Marathi-Language Documentation Considerations

Certain statutory postings and employee-facing notices in Maharashtra are expected to be available in Marathi, alongside English or Hindi, particularly for establishments covered under the Maharashtra Shops and Establishments Act. In practice, this affects:

• Statutory notice boards: working hours, weekly holiday, and leave rules displayed at the workplace, where local offices often expect Marathi alongside English.
• Factory and safety signage: for manufacturing units under the OSH Code, safety instructions are more effective, and better received during inspections, when available in Marathi for shop-floor workers.
• Employee communication for a blue-collar or mixed workforce: appointment letters, now mandatory for every employee under the Industrial Relations Code, land better with factory and warehouse staff when a Marathi version accompanies the English original, even where not strictly mandated.

This is a practical, relationship-and-inspection consideration as much as a strict legal one. Companies that get it right typically have smoother interactions with local labour offices, particularly outside Mumbai's more English-first corporate environment.

Few states combine Maharashtra's range of employer profiles under one compliance regime: global capability centres and IT services in Mumbai and Pune, heavy manufacturing and auto-ancillary units across the Pune-Aurangabad-Nashik belt, and a large MSME and trading base concentrated in and around Mumbai and Thane. Each profile leans on a different part of the same framework. A services company rarely touches OSH Code factory provisions, while a manufacturer rarely worries about IT-sector Shops Act relaxations that don't exist in Maharashtra the way they do in Karnataka.

The practical takeaway for HR teams: don't assume the compliance checklist that worked at your last Maharashtra employer applies unchanged at a company with a different industry mix, even within the same state.

Niyuk's compliance management covers Maharashtra labour law end to end:

• Automated compliance calendar with reminders for every filing deadline.
• State-specific calculations: PT slabs, LWF contributions, and leave provisions per Maharashtra rules.
• Regular updates: Niyuk monitors Maharashtra government notifications for law changes.
• Audit-ready records: all challans, returns, and documentation maintained digitally.

Is Shops & Establishments registration mandatory in Maharashtra?

Yes. Under the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017, every shop and commercial establishment must register online within 60 days of commencement. The registration is now valid for the lifetime of the establishment.

What are the LWF contribution rates in Maharashtra?

Employee contribution is ₹25 per half-year and employer contribution is ₹75 per half-year per employee. Contributions are due in June and December each year.

Are women exempt from Professional Tax in Maharashtra?

Women earning up to ₹25,000 a month are exempt from Maharashtra Professional Tax. Women earning above ₹25,000 a month are subject to the same PT slab as men: ₹200 a month, ₹300 in February.

What is the minimum bonus in Maharashtra?

Under section 26 of the Code on Wages, 2019, the minimum bonus is 8.33% of wages earned or ₹100, whichever is higher. Employees earning up to ₹21,000 a month are eligible, and the bonus is calculated on ₹7,000 a month or the applicable minimum wage, whichever is higher. This applies to establishments with 20 or more workers in Maharashtra.

How can Niyuk help with Maharashtra compliance?

Niyuk manages end-to-end Maharashtra compliance, from Shops Act registration to monthly PF, ESIC, and PT filing, quarterly TDS returns, annual bonus computation, and full audit support. Niyuk's automated systems are built to help you stay on top of every deadline.