Legal Update – Revision in Stipend Rates under NATS

Categories
NAPS / NATS

Revision in Stipend Rates under NATS

As per the new regulation under the Apprenticeship Act, the revised stipend payable by the Government has been updated effective from April 2026.

Earlier, the Government contribution ranged from ₹4,500 up to a maximum stipend limit of ₹12,300. As per the revised regulation, the Government will now reimburse exactly 50% of the stipend amount, subject to applicable provisions. Accordingly, for the maximum stipend of ₹12,300, the Government contribution will now be ₹6,150 from the month of April onwards.

Please refer to the below announcement received from the department for your reference.

Legal Update – Mandatory Vacancy Reporting under Social Security Code, 2020

Categories
Labour Code

Mandatory Vacancy Reporting under Social Security Code, 2020

Dear All,

The Ministry of Labour and Employment has issued a notification dated 08 May 2026 under Section 139(1) of the Social Security Code, 2020, notifying that the provisions relating to mandatory reporting of vacancies to Career Centres shall become effective after 90 days from the date of publication of the notification.

Key Highlights:

  • Applicable to establishments in both the public and private sectors
  • All vacancy details must be reported to the respective Career Centre
  • The provisions will take effect upon completion of 90 days from the date the Social Security (Central) Rules, 2026 come into force

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Legal Update – Maharashtra – Occupational, Health & Safety Rules

Categories
Labour Code

Maharashtra – Occupational, Health & Safety Rules

Dear All,

The Maharashtra Draft OSH Code represents the most significant overhaul of workplace safety and health legislation in the State in over 75 years. The State has released its draft rules which are expected to be notified within the next 30 days.

At Serve HR, We have compiled the Key Changes/ Summary for your reference. While the final notification to implement these is still awaited, These could be taken as a reference point to start planning the key changes.

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Legal Update – Revision in Haryana Labour Welfare Fund (LWF) Contribution

Categories
LWF

Revision in Haryana Labour Welfare Fund (LWF) Contribution

Dear All,

Please note that, as per the latest notification issued by the Haryana Labour Welfare Board, the Labour Welfare Fund (LWF) contribution rates have been revised with effect from 01 January 2026 as detailed below:

Employee Contribution

  • Monthly employee contribution cap increased from ₹34 to ₹35.
  • Deduction to be calculated at 0.2% of monthly wages.
  • Maximum deduction shall be restricted to ₹35 per month.

Employer Contribution

  • Employer shall contribute an amount equal to twice the employee contribution.

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Categories
Professional Tax

Amendment in Maharashtra Professional Tax due dates

Dear all,

This is to inform you that, the Government of Maharashtra has issued the Maharashtra State Tax on Professions, Trades, Callings and Employments (Amendment) Rules, 2026 under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

In view of the above amendment,

  • The due date for filling of Annual Return of Profession Tax has been changed from 31st March to 15th March and
  • The due date for monthly payment and return filing has been changed from the last date of the month to the 15th day of the month.

Accordingly, from March 2026 onwards, PT must be paid on or before the 15th of each month.

Failure to comply within the revised timeline will attract applicable late fees and penalties.

All concerned are requested to take note of the change and ensure timely compliance.

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Legal Update – Karnataka Professional Tax Deduction for February

Categories
Professional Tax

Karnataka Professional Tax Deduction for February Month

This is to inform you that as per the notification issued by Government of Karnataka regarding amendment in Professional Tax deduction, the revised rates are as follows:–

Rs. 200/- per month (for all months except February)
Rs. 300/- for the month of February

Request you to note the above amendment and ensure that the necessary changes are incorporated in the payroll processing for the month of February.

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Legal Update : ESI Coverage of Educational & Medical Institutions

Categories
ESIC

ESI Coverage of Educational & Medical Institutions

  1. Background

The Employees’ State Insurance Corporation (ESIC), Regional Office, Mumbai, has issued a Revised Circular dated 12.02.2026 concerning the proposed extension of ESIC coverage to Educational and Medical Institutions employing 10 or more persons in Maharashtra.

This circular is issued in continuation of an earlier circular dated 11.02.2026 and refers to a notification published by the Government of Maharashtra extending the provisions of the Employees’ State Insurance Act, 1948 to such institutions.

  1. Legal Development

The Government of Maharashtra has subsequently informed ESIC that:

– The Employees’ State Insurance Act, 1948 stands repealed, and

– The Code on Social Security, 2020 has come into force with effect from 21.11.2025.

In view of the repeal of the ESI Act, the State Government has initiated action to cancel the notification issued under Section 1(5) of the ESI Act, 1948, as the legal basis for such notification no longer exists.

  1. Directions Issued by ESIC

Based on the directions of the Government of Maharashtra, ESIC has instructed all field offices to:

– Keep in abeyance the implementation of the said notification, and

– Suspend all further action under the notification until further orders are issued

  1. Compliance Implications for Employers
  1. a) ESIC Registration

– Educational and Medical Institutions are not required to obtain ESIC registration based solely on the stayed notification.

  1. b) ESIC Contributions

– There is no obligation to commence deduction or payment of ESIC contributions pursuant to this notification.

  1. c) Returns, Records & Inspections

– No ESIC returns, declarations, or compliance actions are required under this notification.

– Any enforcement action initiated exclusively under this notification is required to be kept in abeyance.

  1. d) Existing Coverage

– Institutions already covered under ESIC for other valid reasons (e.g., factories or previously notified establishments) remain unchanged and fully compliant under existing law.

  1. Forward-Looking Consideration

While the present notification has been stayed, employers should note that:

– The Government may issue a fresh notification under the Code on Social Security, 2020 covering Educational and Medical Institutions.

– Such notification, if issued, may introduce new thresholds, definitions, or compliance requirements.

Employers are therefore advised to maintain readiness in terms of employee data, wage records, and contractual arrangements, without taking any immediate compliance action.

  1. Recommendation

Employers are advised to take note of the circular and maintain status quo with respect to ESIC compliance. No new ESIC registration or contribution is required at present based on the stayed notification. Institutions should, however, closely monitor future notifications issued under the Code on Social Security, 2020 and be prepared to comply promptly once a valid legal framework is notified.

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