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Payroll Services for Security Agencies in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: 13 March 2026 Verify Credentials →

State-wise Minimum Wage Compliance: Security guard categories separately scheduled in every state; rates revised April and October; non-payment attracts penalties under Code on Wages 2019

PSARA Audit-Ready Payroll: PSARA Controlling Authorities inspect payroll records; guard EPF/ESI and minimum wage evidence maintained on-demand

CLRA Double-Register Compliance: Agency maintains Form IV contractor licence records; principal employer clients get Form I registration evidence to avoid deemed employment risk

Labour Code 2025 Restructuring: 50% basic rule restructures guard CTC; 12-hour shift overtime mandatory at double rate; digital registers replace paper; gratuity after 1 year for fixed-term guards

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Overview What Is It PSARA Compliance Our Services Process Documents Challenges Fees Timeline Benefits Compare FAQs

Security Agency Payroll Compliance - Complete Overview

📌 TL;DR - Security Agency Payroll Services at a Glance

Security agency payroll in India operates under a uniquely layered compliance architecture. A PSARA-licensed agency must simultaneously satisfy PSARA 2005 (licensing), CLRA 1970 (contractor licence and registers), Code on Wages 2019 (minimum wages and 50% basic rule), Social Security Code 2020 (EPF and ESI), OSH Code 2020 (overtime at double rate), IR Code 2020 (fixed-term guard gratuity after 1 year), and the Payment of Bonus Act. Patron Accounting manages this entire compliance landscape from Rs.3,999/month.

Parameter	Requirement / Rate
Minimum Wages	State-specific for security guard categories; revised April and October; national floor wage under Code on Wages 2019
EPF	Employer 12% + Employee 12% of basic + DA; mandatory for agencies with 20+ employees; deposit by 15th each month
ESI	Employer 3.25% + Employee 0.75%; workers earning up to Rs.21,000/month; mandatory 10+ employees
Overtime	OSH Code 2020: beyond 8 hours/day or 48 hours/week = overtime at twice the ordinary rate; Form B register mandatory
Bonus	Payment of Bonus Act: minimum 8.33% of annual wages (max 20%); workers earning up to Rs.21,000/month
Gratuity	IR Code 2020 (Nov 2025): fixed-term guards eligible after 1 year; 15 days salary per year; capped at Rs.20 lakh
GST	Security agency (body corporate): 18% GST under forward charge; non-body corporate with registered client: RCM applies

Code on Wages 2019. The resulting EPF base increase is significant when multiplied across thousands of guards. Fixed-term deployment contracts - the industry's preferred model for site-specific guard postings - now trigger gratuity eligibility after just one year under the Industrial Relations Code 2020.

Paper muster rolls and wage registers are no longer accepted under OSH Code 2020; digital records are mandatory and subject to remote web-based inspection. The Income Tax Act 2025, effective April 1, 2026, revises Form 24Q and Form 16 formats. Patron Accounting's CA team manages this entire compliance landscape, so security agency owners can focus on winning contracts and deploying guards - not navigating multi-statute payroll filings.

Content is reviewed quarterly for accuracy.

What is Security Agency Payroll?

Security agency payroll is the end-to-end process of computing and disbursing wages for guards, head guards, security supervisors, armed personnel, and office staff employed by a PSARA-licensed private security agency - while simultaneously meeting obligations under PSARA 2005, CLRA 1970, minimum wage schedules, EPF and ESI statutes, overtime rules, bonus law, and all four Labour Codes active from November 2025.

Security agency payroll differs fundamentally from generic payroll in four structural ways. First, the workforce is multi-tier and site-scattered: guards are deployed at dozens or hundreds of client locations simultaneously, each with different shift structures, minimum wage schedules, and principal employer relationships. Second, minimum wages are category-specific and biannually revised for Security Guard, Head Guard, Security Supervisor, ASO, SO, and CSO - all at different rates in each state.

Third, overtime is endemic: the industry-standard 12-hour shift means every guard working that shift owes overtime at double the ordinary rate per OSH Code 2020 - a liability routinely miscalculated. Fourth, the CLRA tripartite structure creates dual compliance obligations for both the security agency and the principal employer client.

Key Terms for Security Agency Payroll:

PSARA - Private Security Agencies Regulation Act 2005; mandatory licensing statute for all private security agencies in India; licence valid 5 years; state-specific

CLRA - Contract Labour (Regulation and Abolition) Act 1970; governs the tripartite relationship between agency (contractor), client (principal employer), and guard (contract worker)

Form IV - CLRA contractor licence application required for each state where guards are deployed; renewed annually by December 31

Form XII - CLRA employment card issued to each guard within 3 working days of engagement

Form B - Register of Overtime under CLRA Central Rules 1971; mandatory for all guards on shifts exceeding 8 hours

VDA - Variable Dearness Allowance; revised biannually (April and October) based on Consumer Price Index (CPI)

PSARA Compliant Guard Payroll Management

PSARA Compliance and Its Payroll Implications

The Private Security Agencies Regulation Act 2005 (PSARA) is the primary legislation governing every private security agency in India. While PSARA is primarily a licensing statute, its compliance obligations create direct and material payroll consequences.

PSARA Provision	Payroll Impact
Section 4 - Mandatory Licence	Operating without a PSARA licence is a criminal offence; PSARA Controlling Authorities inspect payroll, EPF/ESI evidence, and minimum wage compliance as part of licence renewal audits
State-specific Licence	Each state requires a separate PSARA licence; agencies operating in multiple states must maintain state-specific payroll registers showing minimum wages per that state's schedule
Police Verification	All guards must have police verification certificates; onboarding a guard to payroll without police clearance creates PSARA non-compliance
Training and Certification	Guards must complete PSARA-approved training; training cost is a payroll-adjacent obligation; some states treat pre-deployment training allowance as part of wages
Uniform and Equipment	Uniform cost deductions from guard wages are regulated; any deduction must comply with Code on Wages 2019 and must not reduce net pay below minimum wage

Additionally, the CLRA 1970 creates a tripartite legal structure. Both the security agency (contractor) and the principal employer client carry distinct statutory obligations - and the agency's payroll records serve as primary evidence in any CLRA inspection.

PSARA-licensed security agency owners and directors deploying guards across states
HR managers of security companies managing multi-site guard rosters
Facility managers handling contract guard payroll under CLRA
Principal employers engaging 20+ contract guards (Form I registration required)
Armed and unarmed guard deployment firms requiring multi-statute compliance

Our Security Agency Payroll Services

Service	What We Do
Monthly Guard Payroll Processing	Gross-to-net wage computation for all guard categories and ranks; state-wise minimum wage compliance check; shift-wise overtime calculation; Form XIX payslip generation; bank transfer disbursement files
Minimum Wage Compliance Management	Biannual (April and October) minimum wage update for each state and guard category; CTC audit against revised schedules; automated revision alerts; CA confirmation of compliance
Overtime Computation and Register	Calculation of overtime for 12-hour shift guards at twice the ordinary rate per OSH Code 2020; Form B Register of Overtime maintenance under CLRA Central Rules; overtime cost reporting by site
EPF and ESI Compliance	Registration (EPFO + ESIC), monthly ECR filing, challan deposit by 15th, annual returns, UAN management for every guard, ESI claim support, Form 10C/10D
CLRA Compliance Registers	Form XII (employment cards), Form XIX (wage slips), Form A (wage register), Form B (overtime register), Form VIII (service certificates); contractor licence renewal calendar
Labour Code 2025 Restructuring	CTC audit for 50% basic rule compliance across all guard grades; revised CTC structures; digital payroll register setup; F&F settlement within 2 working days
Bonus Calculation	Annual bonus computation per Payment of Bonus Act (8.33-20% of wages); monthly accrual provision; payout calendar within 8 months of FY end; bonus register
Gratuity Provision Management	Monthly gratuity accrual for all guards; tracking of 1-year threshold for fixed-term guards under IR Code 2020; gratuity calculation and F&F settlement
GST on Security Services	Correct GST classification (forward charge vs RCM); invoice format review; ITC eligibility for principal employer clients; GST return reconciliation support
TDS and Annual Compliance	TDS under Section 192 (IT Act 2025); Form 24Q quarterly; Form 16 by June 15; annual EPF and ESI returns; state PT returns

Our Process

Security Agency Payroll Process - 8 Steps

Patron Accounting follows a structured 8-step payroll cycle designed specifically for PSARA-licensed security agencies - covering guard classification, state-wise minimum wages, overtime computation, statutory filings, and CLRA register maintenance.

Step 1

Guard Classification and Category Register

Map each guard to their PSARA-defined role (Security Guard, Head Guard, Supervisor, ASO, SO, CSO). Verify police verification certificate status. Confirm PSARA licence validity for the state of deployment. Issue Form XII CLRA employment card within 3 working days.

PSARA role mapping Form XII issued in 3 days Police verification linked

Guard Classified 01

Step 2

State-Wise Minimum Wage Verification

Before each payroll cycle, verify the current minimum wage for each guard's category in each state of deployment. Apply the higher of national floor wage and state-specific schedule. Ensure basic + VDA constitutes at least 50% of total CTC per Code on Wages 2019.

State-wise rate check 50% basic rule verified

Wages Verified 02

Step 3

Shift and Attendance Capture

Collect site-wise attendance data from client deployment registers, biometric systems, or mobile attendance apps. Record actual shift hours per guard. Flag guards working beyond 8 hours/day or 48 hours/week for overtime calculation.

Digital attendance capture OT hours flagged

Shifts Captured 03

Step 4

Overtime Calculation

For each guard working 12-hour shifts, compute overtime hours (shift hours minus 8 ordinary hours). Apply twice the ordinary hourly rate to overtime hours. Update Form B (Register of Overtime) for each guard at each site.

Double rate computed Form B updated

OT Computed 04

Step 5

Gross-to-Net Payroll Computation

Compute gross wages (Basic + VDA + HRA + Overtime + Allowances). Apply deductions: EPF 12% employee, ESI 0.75%, TDS (where applicable), Professional Tax. Generate Form XIX wage slips at least 1 day before disbursement.

Gross-to-net computed Form XIX generated

Payslip Ready 05

Step 6

Statutory Contribution Computation

Calculate employer EPF (12%) and ESI (3.25%) on each guard's wage base. Prepare EPF ECR for all guards. Compute monthly bonus accrual (8.33%/12) and gratuity provision (15/26 of monthly Basic+DA). Update site-wise cost reports.

EPF/ESI computed Bonus and gratuity accrued

Contributions Filed 06

Step 7

Disbursement

Pay guard wages by the 7th of each month per Code on Wages 2019. Deposit EPF and ESI by the 15th. Deposit TDS by the 7th. Maintain site-wise disbursement records as evidence for CLRA principal employer audits.

Wages paid by 7th EPF/ESI by 15th

Wages Disbursed 07

Step 8

Statutory Filings and Records

File EPF ECR monthly. ESI returns quarterly. Form 24Q quarterly under IT Act 2025. Issue Form 16 by June 15. Maintain Form A, Form B, Form XII, Form XIX digitally as required by OSH Code 2020. File annual bonus register by November 30.

All returns filed on time Digital records maintained

Filings Complete 08

Documents Required for Security Agency Payroll Compliance

A PSARA-licensed security agency must maintain the following documents for payroll compliance and audit readiness:

Valid PSARA licence for each state of operation
Police verification certificates for all deployed guards
MoU with government-authorised training institute
Form IV CLRA contractor licence for each state (renewed annually)
Form XII CLRA employment cards for all active guards
Digital Form A (wage register) - past 12 months
Digital Form B (overtime register) for all guards on 12-hour shifts
Form XIX wage slips - past 3 months minimum
EPF ECR submissions and challan deposit receipts - past 12 months
ESI challan deposit receipts - past 12 months
Minimum wage compliance analysis per state and guard category
Payment of Bonus Act register
Gratuity provision statements for fixed-term guards completing 1 year
State-specific registers required under applicable state PSARA rules

Security Agency Payroll Challenges and Our Solutions

Challenge	Impact	How Patron Accounting Solves It
Overtime Underestimation	Agencies treat 12-hour shifts as 'ordinary' and pay flat rate. Labour inspectors detect this as overtime non-payment, triggering back-pay demands with interest under OSH Code 2020.	We compute overtime for every guard on every 12-hour shift. Form B maintained digitally for instant PSARA or labour authority inspection. Cost impact modelled on client billing.
State Minimum Wage Revision Lag	Revised wages notified every April and October across multiple states. Delayed implementation means guards are underpaid - a Code on Wages 2019 violation with penalties up to Rs.1,00,000.	State-wise minimum wage calendar maintained for all guard categories. Revised rates implemented within 7 days of notification. CA-confirmed compliance certificate issued each April and October.
CLRA Register Gaps	Agencies maintain Form IV but neglect Form XII (employment cards), Form XIX (wage slips), and Form B (overtime register). These gaps are critical in CLRA inspections.	Payroll system generates Form XII for every new guard, Form XIX for every cycle, Form B for every OT-eligible guard - all digitally per CLRA Central Rules 1971.
Fixed-Term Gratuity Post Nov 2025	IR Code 2020 makes fixed-term guards eligible for gratuity after 1 year (reduced from 5 years). Few agencies have updated provisions, creating unexpected liabilities.	Every guard's joining date tracked; 1-year anniversary flagged; monthly gratuity accrual built into payroll model; F&F includes gratuity for all qualifying guards.
50% Basic Rule Restructuring	Code on Wages 2019 eliminates low-basic, high-allowance CTC structures. EPF base increase for agencies with 1,000+ guards is material and threatens contract margins.	Full CTC audit across guard workforce; EPF cost impact modelled; revised structures proposed to meet 50% rule with minimal net cost increase; client contract renegotiation support.
GST RCM vs Forward Charge	Agencies incorrectly invoice all clients under forward charge. Where agency is not body corporate and client is registered body corporate, RCM applies - leading to GST demand notices.	Legal constitution reviewed; each client invoice classified correctly as forward charge or RCM. Agencies advised on body corporate incorporation where scale warrants it.

Security Agency Payroll Service Fees and Charges

Fee Component	Amount
Starter Plan (Up to 50 guards)	Rs.3,999/month - Payroll processing, Form XIX wage slips, EPF/ESI filing, basic minimum wage compliance check
Growth Plan (51-200 guards)	Rs.8,999/month - All Starter + overtime computation (Form B), CLRA Form XII register, state min wage update service, bonus provision
Operations Plan (201-1000 guards)	Rs.19,999/month - All Growth + multi-state payroll, gratuity provision tracking, CTC restructuring, PSARA compliance register, Form 16
Enterprise Plan (1000+ guards)	Custom quote - Dedicated CA team, PSARA licence audit support, multi-state CLRA compliance, client billing reconciliation, GST review
Patron Accounting Professional Fees	Starting from INR 149 per employee (Exl GST and Govt. Charges)
CLRA Form B Overtime Register Add-on (Starter plan)	Rs.2,000/month

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Security Agency Payroll consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Security Agency Payroll Onboarding Timeline

Stage	Estimated Timeline
Week 1 - Consultation and Audit	Days 1-7: PSARA licence review; guard roster and deployment state mapping; CTC audit for 50% basic rule; shift structure review for overtime exposure
Week 2 - System Setup	Days 8-14: Guard data migration; Form XII generation for all active guards; minimum wage schedule setup per state and category; overtime rule configuration
Week 3 - Parallel Test Run	Days 15-21: Parallel test payroll; minimum wage compliance check; overtime calculation trial; EPF/ESI YTD reconciliation; CLRA register review
Week 4 - Go-Live	Days 22-28: First live payroll run; Form XIX wage slips; EPF ECR; ESI challan; Form B overtime register; CLRA registers generated
Month 2+ Ongoing	Ongoing: Monthly payroll cycle; April and October min wage updates; quarterly Form 24Q; annual bonus and gratuity provision reporting; PSARA audit support

Fast-Track Available: For agencies with fewer than 50 guards and single-state operations, we can complete onboarding in 14 days. Multi-state agencies with 500+ guards may require 5-6 weeks for complete data migration and parallel testing.

Key Benefits

Why Outsource Security Agency Payroll to Patron Accounting

Minimum Wage Compliance - Always Current

Every April and October revision implemented within 7 days; Code on Wages 2019 non-payment risk eliminated; CA-certified compliance letter provided

Overtime Correctly Computed

12-hour shift excess hours paid at double rate per OSH Code 2020; Form B register maintained; labour inspection exposure eliminated

CLRA Registers Audit-Ready

Form XII, Form XIX, Form B, Form VIII maintained digitally; ready for PSARA Controlling Authority and principal employer CLRA audits

Labour Code 2025 Fully Implemented

50% basic rule; fixed-term gratuity after 1 year; digital registers; F&F within 2 working days - all implemented from Day 1

Guard Churn Managed

High-attrition workforce onboarded, separated, and F&F settled within statutory deadlines; UAN management for migrant guards

Audit Confidence

PSARA, EPFO, ESIC, and labour authority inspections supported with complete digital documentation; CA represents agency in proceedings

Trusted by Security Agencies Across India

10,000+ businesses including PSARA-licensed security agencies trust Patron Accounting for payroll and statutory compliance management. With 15+ years of experience, a 4.9-star Google rating from 500+ verified reviews, and 50,000+ payroll documents filed annually, our CA and CS team delivers audit-ready payroll infrastructure for security agencies across India.

Our offices in Gurugram, Mumbai, Pune, and Bengaluru provide multi-state coverage. Expert payroll advice is available within 30 minutes of inquiry. ISO Certified processes and registered CA firm credentials ensure professional-grade compliance management.

In-House vs Outsourcing Security Agency Payroll

Factor	In-House / DIY	Patron Accounting
Overtime Compliance	Flat rate for 12-hour shifts; double-rate requirement missed; back-pay risk	Double rate computed for every excess hour; Form B maintained; zero back-pay risk
Min Wage Updates	Manual tracking; revisions missed; guards underpaid; Code on Wages violation	Biannual update service; CA-confirmed compliance letter every April and October
CLRA Registers	Form XII/XIX/B often missing; CLRA inspection gaps	Complete CLRA register set maintained digitally; PSARA audit-ready
Labour Code Restructuring	50% basic rule unimplemented; EPF base understated; EPFO demand risk	Full CTC audit and restructuring; EPF base corrected; no retrospective demands
Gratuity - Fixed-Term	1-year threshold not tracked; unexpected liability on guard exit	Monthly accrual; 1-year flag; F&F settlement includes gratuity
Cost	HR staff salary Rs.4-8 lakh/year + errors + penalties + inspection costs	From Rs.3,999/month all-inclusive; penalties and labour disputes avoided

Related Services for Security Agencies

Patron Accounting offers a comprehensive suite of services that complement security agency payroll management:

TDS Return Filing - Form 24Q quarterly for officer and supervisor salaries above TDS threshold; Form 16 annual; Section 192 IT Act 2025 compliance
GST Registration and Returns - GST on security services (18% forward charge or RCM); monthly/quarterly returns; e-invoicing for large agencies
Payroll Services (All Industries) - Full-spectrum payroll outsourcing for 10,000+ clients across India
ESIC Calculation and Compliance - Complete ESI compliance for agencies meeting employee thresholds
PF Return Filing - Monthly EPF ECR filing, annual returns, and UAN management for guard workforce
Gratuity Calculations and Compliance - Monthly accrual provisioning and F&F settlement for fixed-term guards completing 1 year

Legal Framework for Security Agency Payroll in India

Act / Code	Key Provision	Security Agency Applicability
PSARA 2005	Mandatory licence from state Controlling Authority; valid 5 years; police NOC; training institute MoU	Every security agency providing guards in India; state-specific licence for each state
CLRA 1970	Form IV contractor licence; Form I principal employer registration; Form XII employment cards; Form B overtime register	Security agency (contractor) and every client engaging 20+ guards (principal employer)
Code on Wages 2019	Minimum wages per state schedule; basic + DA at least 50% of CTC; salary by 7th; VDA revised April and October	All security agencies - mandatory biannual minimum wage revision for every guard category
Social Security Code 2020	EPF 12%+12% (agencies 20+ employees); ESI 3.25%+0.75% (agencies 10+ employees, workers up to Rs.21,000/month)	Applies to all security agencies meeting headcount thresholds
Industrial Relations Code 2020	Fixed-term employment formal; gratuity after 1 year for FTE; F&F within 2 working days; digital registers	High impact: most guard deployments are site-specific fixed-term; gratuity now at 1 year
OSH Code 2020	8 hours/day, 48 hours/week normal; overtime at twice rate; digital records mandatory	Critical for 12-hour shifts - 4 hours per shift is overtime at double rate
Payment of Bonus Act 1965	Minimum 8.33% of annual wages; workers earning up to Rs.21,000/month; payable within 8 months of FY end	Entire guard workforce (below Rs.21,000/month) covered; large aggregate liability
EPF Act / SS Code	15 days salary per year; Rs.20 lakh cap; 1 year for fixed-term (from Nov 2025)	Fixed-term guards completing 1-year deployments trigger gratuity
Income Tax Act 2025	Section 192 TDS on salaries above exemption; Form 24Q quarterly; Form 16 by June 15	Guards on minimum wage typically below threshold; supervisors and officers attract TDS

Frequently Asked Questions - Security Agency Payroll

Expert answers to the most common questions about payroll compliance for PSARA-licensed security agencies in India.

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What payroll compliance obligations does a private security agency have in India?

A PSARA-licensed security agency must comply with state-specific minimum wages for each guard category revised every April and October under Code on Wages 2019; EPF contributions (employer 12% + employee 12%) deposited by the 15th each month; ESI contributions (employer 3.25% + employee 0.75%) for workers earning up to Rs.21,000/month; overtime at twice the ordinary rate for hours beyond 8/day under OSH Code 2020; Payment of Bonus Act compliance (minimum 8.33%); CLRA contractor licence and register maintenance; and annual bonus and gratuity provisions.

Do security agencies need to pay overtime for 12-hour shifts?

Yes. Under OSH Code 2020 (active November 2025), standard working hours are 8 hours/day and 48 hours/week. Any work beyond these limits is overtime at twice the ordinary rate. Guards on 12-hour shifts work 4 hours of overtime per shift at double rate. The agency must maintain Form B Register of Overtime under CLRA Central Rules 1971. Failure to pay correct overtime attracts penalties and back-pay demands.

What is the CLRA Act and how does it apply to security agencies?

CLRA 1970 governs deployment of contract labour through a tripartite framework. The security agency must obtain Form IV CLRA contractor licence for each state; issue Form XII employment cards within 3 days; issue Form XIX wage slips before disbursement; maintain Form A wage register and Form B overtime register digitally. The principal employer client must register under Form I if engaging 20+ contract guards.

How does the 50% basic wage rule affect security agency payroll?

Code on Wages 2019 requires basic pay plus DA to be at least 50% of total CTC. Security agencies that structured guard CTC with low basic and high allowances to minimise EPF must restructure. The excess allowances get added to the wage base for EPF, ESI, gratuity, and overtime. For agencies with hundreds of guards, the EPF cost increase is material and needs modelling.

What is the gratuity obligation for fixed-term security guards?

Under the Industrial Relations Code 2020 (active November 2025), fixed-term employees are eligible for gratuity after completing just 1 year of service - reduced from the previous 5-year threshold. Gratuity is calculated at 15 days salary per year of service, capped at Rs.20 lakh. Agencies must provision gratuity monthly for all guards approaching the 1-year mark.

Does GST apply to security agency services?

Yes, security services are taxable at 18% GST under HSN 9985. If the agency is a body corporate (Pvt Ltd, LLP), it charges 18% under forward charge. If the agency is not a body corporate and the client is a registered body corporate, RCM applies under GST Notification 13/2017 - the client pays GST directly. Incorrect invoicing leads to GST demand notices.

What documents are needed for a PSARA compliance audit?

Key documents include: valid PSARA licence for each state; police verification certificates; training MoU; Form IV CLRA licence; Form XII employment cards; digital Form A and Form B registers; Form XIX wage slips; EPF ECR and ESI challan receipts; minimum wage compliance analysis by state and category; bonus register; and gratuity provision statements for fixed-term guards.

What is the penalty for security agency payroll non-compliance?

Penalties come from multiple regulators simultaneously. Code on Wages: up to Rs.1,00,000 for repeat offences plus back-payment with interest. EPF defaults: 12% annual interest plus damages up to 25%; imprisonment up to 3 years for wilful non-payment. CLRA violations: contractor licence cancellation. PSARA violations: licence suspension or cancellation and criminal prosecution.

Quick Answers

Minimum wages for security guards? State-specific and category-specific; revised April and October; basic + VDA must be 50% of CTC; national floor wage from Code on Wages 2019.

EPF for guards? Yes - 12%+12% of basic+DA; mandatory for agencies with 20+ employees; deposit by 15th.

Overtime for 12-hour shifts? Yes - hours beyond 8/day = overtime at twice ordinary rate; Form B register mandatory under CLRA Rules.

CLRA Form IV contractor licence? Mandatory for security agency deploying contract guards; renewed annually by December 31; state-specific.

Gratuity for fixed-term guards? Yes - eligible after 1 year under IR Code 2020 (from November 2025); 15 days salary per year.

GST on security services? 18% GST; forward charge if agency is body corporate; RCM if non-body corporate agency and registered body corporate client.

Compliance Deadlines - Act Now

April 1, 2026: Income Tax Act 2025 in effect - update TDS formats; Form 24Q and Form 16 revised formats. 7th of each month: TDS deposit and guard wage disbursement (Code on Wages 2019) - penalty up to Rs.1,00,000 for late wages. 15th of each month: EPF and ESI deposits - 12% annual interest plus damages up to 25% for EPF defaults. Every April and October: Implement revised state minimum wages for all guard categories.

Don't risk PSARA licence suspension or CLRA contractor licence cancellation. Call +91 945 945 6700 or WhatsApp us for a free compliance assessment.

Start Your Security Agency Payroll Compliance Today

Payroll compliance for security agencies in India is multi-statute, multi-regulator, and operationally demanding. A PSARA-licensed agency must simultaneously satisfy licensing obligations, CLRA requirements, biannually revised minimum wages, overtime laws, EPF/ESI contributions, bonus provisions, and the accelerated gratuity obligation under the November 2025 Labour Codes.

Patron Accounting delivers CA-managed infrastructure for PSARA-licensed security agencies - from monthly guard payroll and minimum wage updates to CLRA register maintenance, PSARA audit support, and Labour Code compliance restructuring. With 15 years of experience and 10,000+ clients, we allow security agency owners to focus on guard deployment and client service - not statutory filings.

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Security Agency Payroll Services Across India

Patron Accounting provides security agency payroll services in major cities across India with state-wise minimum wage compliance.

Security Agency Payroll Services by City

State-wise minimum wage compliance and CLRA register maintenance for security agencies

Related Compliance Services Across India

Comprehensive payroll and statutory compliance for all industries

Content Created: 13 March 2026 | Last Updated: 13 March 2026 | Next Review: 13 October 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed every 6 months - aligned to state minimum wage revisions for security guard categories (April and October), Labour Code updates, PSARA amendment notifications, and IT Act 2025 implementation. Next review: October 2026.