HR and payroll compliance for Indian businesses
September 2025: Employment Law Changes That Affect You
Welcome to the September 2025 compliance update. Below is a clear summary of the most important employment-law and tax changes that may affect your HR, payroll and compliance work this month.
At a glance, key changes this month
- EPFO launches a revised electronic challan and return (ECR) system with a 4 month transition period.
- PF settlement claims to be paid on a part-payment basis instead of being rejected.
- Income-tax audit report filing deadline extended for AY 2025 to 26.
- No Professional Tax slab changes verified this month.
What changed in the EPFO electronic challan system?
Effective: September 2025 wage month
Authority: EPFO
EPFO has introduced major structural changes to the monthly ECR filing process. Employers must file in the new format starting with September 2025. Three new return types, Regular, Supplementary and Revised, are now available.
What employers should do
- Use the new return types from September payroll filings.
- Use the 4 month transition period to fix old return issues.
- Check member pension eligibility and age validations.
What has EPFO directed on part-payment of PF claims?
Effective: Immediate • Authority: EPFO
EPFO has issued a directive requiring field offices to process PF final settlement claims through part-payment rather than rejection when contributions or transfer-ins are pending.
What employers should do
- Clear pending contributions or arrears quickly.
- Ensure transfer-in requests are closed for exiting employees.
- Update internal exit procedures to reflect part-payment rules.
When is the extended income tax audit report deadline?
Authority: CBDT • Press Release: 25 September 2025
CBDT has extended the audit report filing deadline for AY 2025 to 26. This applies to companies and businesses requiring Form 3CD and related disclosures.
What employers should do
- Update the compliance calendar with the new due date.
- Work with auditors to meet the revised deadlines.
- Ensure e-filing schedules are updated across finance teams.
Did anything change in Professional Tax this month?
A review of official state portals from 15 September to 13 October shows no new PT slab changes, notifications or filing-rule adjustments. Offrd will continue monitoring.
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