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PAYROLL MANAGEMENT

Payroll Outsourcing in India with PF, ESI and TDS Handled

We run the monthly payroll for Indian companies and for foreign owned teams in India. Salaries, payslips, PF, ESI, professional tax and salary TDS are calculated, paid on time and reconciled every month.

  • 4labour codes in force since 21 Nov 2025
  • INR 25,000PF wage ceiling from 17 Sep 2026
  • INR 21,000ESI wage ceiling
Your monthly payroll cycle

Payroll management

Inputs lockedJoiners · leavers · attendance · variable pay
Payroll processedSalary register · payslips · bank file
Statutory dues paidTDS by the 7th · PF and ESI by the 15th
A clear process. An accountable team.

WHAT YOU GET

A payroll that is right on the first run, every month

Payroll errors cost more than the fee to avoid them. A missed PF deposit carries interest and damages, and a wrong TDS figure turns into a notice a year later. We work to a fixed calendar and reconcile every deposit to the salary register.

Salary processing

Gross to net for every employee, payslips, the bank payment file and full and final settlements.

Statutory deposits

PF, ESI, professional tax, labour welfare fund and salary TDS, calculated, paid and filed on time.

Reports and records

Salary register, cost to company summaries, variance reports and the records an auditor will ask for.

THE STATUTORY CALENDAR

What payroll must deposit and file

The monthly and annual dates we work to. Rates and ceilings checked 25 Sep 2026.

ObligationRate or ruleDue
Salary TDSAt the slab rates of the regime the employee choosesDeposit by the 7th of the next month, 30 April for March
TDS statement and certificatesQuarterly salary TDS return, and an annual TDS certificate for each employeeReturns by 31 July, 31 October, 31 January and 31 May, certificates by 15 June
Provident fund12 percent from employee and employer on wages up to INR 25,000 a monthDeposit and ECR by the 15th of the next month
Employees’ State Insurance0.75 percent from the employee, 3.25 percent from the employer, for wages up to INR 21,000By the 15th of the next month
Professional taxSet by each state, up to INR 2,500 a year per employeeMonthly or annual, depending on the state
Labour welfare fundSmall fixed amounts set by each stateHalf yearly or annual, depending on the state

HOW WE WORK

How a payroll month runs

One calendar, agreed at the start. You approve the payroll before anything is paid.

01

Collect the inputs

Your team sends joiners, leavers, attendance, leave and variable pay by the agreed cut off date. We query anything that looks wrong.

02

Process and review

We calculate gross to net, statutory deductions and employer costs. You get a variance report against last month to approve.

03

Pay and issue payslips

We prepare the bank file for your approval and release payslips to employees once salaries are paid.

04

Deposit and file

We pay TDS, PF, ESI and professional tax by their due dates and file the returns. Every challan is reconciled to the register.

THE LABOUR CODES

What changed for employers in 2025 and 2026

The Code on Wages, the Code on Social Security, the Industrial Relations Code and the Occupational Safety, Health and Working Conditions Code came into force on 21 November 2025. They replaced 29 older labour laws.

The 50 percent wage rule

Wages for PF, gratuity and bonus now include allowances above 50 percent of total pay. A structure with a low basic and high allowances raises PF and gratuity costs.

We review the salary structure before the first payroll and show the cost of each option.

Higher PF wage ceiling

From 17 September 2026 the PF wage ceiling is INR 25,000 a month, up from INR 15,000, under S.O. 5109(E). More employees now fall under mandatory PF.

Employer cost rises for anyone earning between the two figures. We reprice the payroll budget for you.

Gratuity and final pay

Fixed term employees earn gratuity after one year of service. Full and final pay is due within two working days of an employee leaving.

We run settlements to that deadline and keep the working for each one.

BUILD THE RIGHT ENGAGEMENT

Scope and fees

For foreign owned companies

An Indian subsidiary must run Indian payroll for its employees, even when the parent pays through a global provider. Salary TDS, PF and ESI are registered to the Indian company.

We map Indian payroll to the parent’s reporting pack and cost centres, so group reporting reconciles.

Registrations first

A new company needs TAN, PF, ESI and professional tax registrations before the first payroll. We file those that are missing.

Hiring in another state can add a professional tax and a labour welfare registration there.

How we scope the fee

The fee depends on headcount, the number of states, how often the inputs change and whether you want HR letters and policies included.

Our monthly fee is fixed in writing before we start. See the published fee bands for our retainer.

YOUR QUESTIONS

Payroll outsourcing questions

Clear expectations make a better engagement.

Do you pay salaries from our bank account?

No. We prepare the bank file and you approve and release it. The company keeps control of every payment.

Which payroll software do you use?

We can work in your system or run payroll in ours. Either way, you keep the salary register and payslips.

Is PF mandatory for every employee?

PF applies once an establishment has 20 or more employees. Within it, contributions are mandatory for wages up to INR 25,000 a month from 17 September 2026. Employees above the ceiling can contribute voluntarily.

How do the labour codes affect our salary structure?

Allowances above 50 percent of total pay are added back to wages for PF, gratuity and bonus. A structure built on a low basic salary will cost more under the codes.

Can you handle employees in several states?

Yes. Professional tax and labour welfare rules differ by state. We register and file in each state where you employ people.

Do you issue the annual TDS certificates?

Yes. We file the quarterly salary TDS returns and issue each employee’s annual certificate by 15 June.

What happens to payroll when someone leaves?

We calculate the full and final settlement, including leave encashment and gratuity where due. It is paid within two working days of the exit under the Code on Wages.

LET’S DEFINE THE NEXT STEP

Tell us about your team

Share the headcount, the states you hire in and how payroll runs today. We will confirm the scope and a fixed monthly fee.

  • A reply within 4 business hours, IST
  • A fixed fee quote in writing after the first call
  • Government fees shown at cost, with no markup

Prefer email? Write to [email protected].

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