📅 For Monthly, Quarterly or Annual HR/Compliance Audits
🧾 1. Wage Structure & Salary Components
| Audit Item |
Checkpoint |
Compliance Tip |
| 1.1 |
Is at least 50% of total remuneration included in “Wages” as defined under Section 2(y)? |
Adjust Basic + DA accordingly |
| 1.2 |
Are allowances (HRA, conveyance, bonus, incentives) not exceeding 50% of CTC? |
Recalculate CTC if necessary |
| 1.3 |
Is VDA (Variable Dearness Allowance) being revised as per state-specific frequency (e.g., half-yearly in MH & TN)? |
Use CPI-IW index updates |
| 1.4 |
Are part-time workers paid 15% premium over normal hourly rates (as required in Maharashtra)? |
Apply premium where applicable |
| 1.5 |
Have wages been revised after state’s latest minimum wage notification? |
Keep updated with local wage board updates |
📄 2. Registers & Forms (As per Code on Wages Rules)
| Audit Item |
Form |
State Variations |
| 2.1 |
Register of Wages |
Form I |
| 2.2 |
Register of Overtime |
Form II |
| 2.3 |
Register of Deductions |
Form III |
| 2.4 |
Register of Fines |
Form IV |
| 2.5 |
Register of Advances |
Form V |
| 2.6 |
Wage Slip |
Form VI |
| 2.7 |
Evidence Register (Complaints) |
Form VII |
| 2.8 |
Appeal Register |
Form VIII |
| 2.9 |
Annual Return Submission |
Form IX |
📥 3. Payment of Wages Compliance
| Audit Item |
Frequency |
Remarks |
| 3.1 |
Are wages paid within 7th or 10th of the following month as per Act? |
Monthly payroll cutoff check |
| 3.2 |
Is salary credited directly into employee bank accounts? |
Digital transfer mandatory |
| 3.3 |
Are no unauthorized deductions made? |
Check if deductions are per Sec 18 |
| 3.4 |
Are loan/advance repayments as per agreed installments? |
Document approval & recovery record |
⚖️ 4. Equal Remuneration
| Audit Item |
Gender Parity Check |
Compliance Action |
| 4.1 |
Is equal pay given for same/similar work to male/female/third gender workers? |
Review designation-wise salary |
| 4.2 |
Are promotions and pay hikes non-discriminatory? |
Ensure HR policy reflects parity |
| 4.3 |
Do job descriptions mention non-discriminatory nature? |
Include in appointment letters |
🧑⚖️ 5. Bonus & Statutory Benefits
| Audit Item |
Law |
Status |
| 5.1 |
Is bonus paid under Payment of Bonus Act till Central Rules notified? |
8.33% minimum, 20% max |
| 5.2 |
Is gratuity paid under Payment of Gratuity Act till Wage Code enforced? |
>5 years of service |
| 5.3 |
Is Leave Encashment paid as per state law/Standing Orders? |
Maintain leave register |
🛠️ 6. Inspector-Cum-Facilitator Interaction
| Audit Item |
Preparation |
Remarks |
| 6.1 |
Are all records digitally available for inspection? |
Use HRMS or labour compliance software |
| 6.2 |
Are intimations of deductions submitted within 10 days (in MH)? |
Track via HR calendar |
| 6.3 |
Is the establishment registered under Code on Wages Portal (once live)? |
Mandatory for all employers |
| 6.4 |
Are copies of notifications and VDA revisions available for reference? |
Maintain hard & soft copies |
📢 7. Display & Notices
| Audit Item |
Required Notice |
Location |
| 7.1 |
Minimum wages applicable |
At main gate or employee notice board |
| 7.2 |
Abstract of Code on Wages (in local language) |
As per Rule 22 |
| 7.3 |
Grievance Redressal Officer details |
Mention name/contact clearly |
💻 8. State-Specific Additional Requirements
| State |
Extra Compliance Area |
| Maharashtra |
Online filing of deduction notices, extra premium for part-time |
| Tamil Nadu |
Strong enforcement of working hours and VDA compliance |
| Gujarat |
SEZ compliance flexibility; MSME-friendly inspection |
| Kerala |
Legacy minimum wage levels; early VDA adaptation and union oversight |
🧮 9. HR Policy & Internal Compliance
| Audit Item |
Review Needed |
| 9.1 |
Are offer letters & salary breakups Code-compliant? |
| 9.2 |
Is internal wage audit done quarterly? |
| 9.3 |
Are HR policies updated with new “wage” definition? |
| 9.4 |
Is a Grievance Redressal Officer appointed (mandatory >20 workers)? |
| 9.5 |
Are internal records reconciled with payroll and finance data? |
🟢 Final Compliance Scorecard Template
| Area |
Score (Out of 5) |
Remarks |
| Wage Structure |
✅✅✅✅ |
Aligned with 50% rule |
| Registers & Forms |
✅✅✅ |
Needs digitization |
| Timely Payments |
✅✅✅✅✅ |
Excellent |
| Bonus & Benefits |
✅✅✅ |
Partially delayed |
| Display & Abstracts |
✅✅ |
Missing in branches |
| Inspector Preparation |
✅✅✅✅ |
Portal setup pending |
| HR Policy Alignment |
✅✅✅✅✅ |
Fully compliant |
