HR record-keeping requirements in India
Reviewed by Mellow Editorial Team, HR & payroll content team
Employers in India are legally required to keep specific employment records — registers, wage records, statutory filings and tax documents — and the obligations cut across multiple central and state laws. Getting this wrong carries real penalties, so understanding exactly what you must retain and for how long is not optional.
What the Four Labour Codes Require
India's four consolidated Labour Codes — covering wages, industrial relations, social security, and occupational safety — are in force from 2025. Together they replace a patchwork of older legislation and consolidate the record-keeping obligations that previously sat across separate acts.
Under the codes, employers are generally required to maintain:
- A register of employees (name, designation, date of joining, wage details)
- Attendance and leave records
- Wage payment registers showing amounts paid, deductions made and the basis of calculation
- Records of overtime worked
- Accident and injury registers (where applicable under the occupational safety code)
The specific format for some registers is prescribed by rules notified at the central or state level, so check which state-level rules apply to your establishment. Many states have moved to allow digital maintenance of these registers, provided records are available for inspection on demand.
Payroll and Tax Records
Payroll record-keeping links directly to your income tax withholding obligations. As the employer, you deduct TDS from salaries under the income tax rules, file Form 24Q on a quarterly basis, and issue Form 16 to each employee at the end of the financial year. You must retain copies of all of these.
Practically, this means keeping:
- Salary computation sheets for every employee for each financial year
- Declarations employees submit for investment proofs and exemptions
- Form 16 copies issued (tax year 2026/27 forms, for example, will need to be retained well beyond the year of issue)
- Proof of TDS deposited and challans
- Form 24Q filings and acknowledgements
The income tax department can initiate scrutiny assessments covering prior years, so retaining payroll tax records for at least seven years is prudent standard practice, though you should confirm the precise limitation period applicable to your situation with a tax adviser.
EPF and ESI Records
Provident Fund and ESI compliance requires its own paper trail. Under EPF, both employee and employer contribute at 12% of applicable wages each. You need to retain:
- Monthly ECR (Electronic Challan cum Return) filings and payment confirmations
- Employee UAN records and KYC documentation
- EPF contribution registers showing individual employee breakdowns
For ESI, which applies to employees below the applicable wage threshold, you must maintain records of employee registrations, contribution details and returns filed with ESIC.
Both the EPFO and ESIC have inspection powers. Their officers can demand records going back several years, and failure to produce them is treated as non-compliance independent of whether the underlying contributions were actually made.
Gratuity and Service Records
Gratuity becomes payable after five years of continuous service, which makes service records a long-term obligation. If an employee leaves after eight years and you cannot document their joining date, their role, or any breaks in service, you may face a disputed gratuity calculation with no records to defend your position.
Retain:
- Offer letters and appointment letters
- Confirmation letters, promotion letters and any changes to terms of employment
- Leave records for the entire tenure
- Full and final settlement documents when employment ends
These records should be kept for at least five years after employment ends — longer if there is any unresolved dispute.
Inspection Readiness and Digital Records
Labour inspectors can visit without notice under the Labour Codes' unified inspection scheme. An inspector may ask for any register or document on the spot, and saying records are "being updated" or "stored elsewhere" is not accepted as an adequate response.
A few practical points:
Format. Digital records are acceptable across most jurisdictions but must be printable and accessible immediately. Keep backups.
Language. Some state rules require registers to be maintained in the regional language or in bilingual format. Check your state's specific rules.
Retention periods. Where no period is specified in a particular rule, the broadly accepted standard is three to five years, but seven years is a safer default for anything touching taxes or financial contributions.
Employee access. Employees are entitled to inspect certain records — particularly their own wage slips and contribution statements. Build a process to respond to these requests promptly.
The shift to the consolidated Labour Codes from 2025 is also an opportunity to audit what you are currently keeping. Many employers find they are maintaining redundant legacy registers from repealed acts while missing records now required under the new framework. A systematic review against the applicable central and state rules is the most reliable way to confirm you are compliant.
---
Run HR and payroll in India with Mellow
Mellow brings HR, payroll and 12 AI agents into one platform — built to handle India properly, with payroll included, from £4 per employee per month. The AI agents don't just answer questions; they generate contracts, run cost estimates and draft letters for you.
[Start a free trial →](/register)