Salaries out on time. Statutory dues with them.
Monthly payroll processing with provident fund, state insurance, professional tax and salary withholding handled as one dated process — not as an afterthought at the end of the accountant's month. Including the wage-structure rethink the labour codes now force.
Filing the ECR without paying the challan is not compliance. Verified against the EPF and ESI frameworks as on 03 Aug 2026.
Payroll is a process, not a calculation.
The arithmetic is the easy part. What breaks is the sequence — inputs collected late, a joiner without a UAN, a challan filed but unpaid, an exit settled without the leave working.
Salary processing
- Salary computation for every employee
- CTC to take-home breakup
- Overtime, bonus and variable pay
- Payslips issued digitally
- Bank payment file prepared
Statutory compliance
- PF — ECR generated, filed and challan paid
- ESIC — contribution computed and deposited
- Professional tax — state-wise computation and filing
- Salary TDS deducted and deposited
- Quarterly statement in Form 138
Salary structuring
- CTC split designed, not copied from a template
- Wage definition under the labour codes applied
- Statutory cost modelled before offers go out
- Restructuring existing salaries where needed
Joiners and exits
- UAN and ESI IP generation for new joiners
- Onboarding documentation
- Full and final settlement working
- Leave encashment and gratuity where applicable
Year-end
- Investment declarations collected and verified
- Annual tax computation per employee
- Form 130 — the salary TDS certificate
- Statutory registers maintained
What you see
- Monthly payroll summary
- Department-wise cost report
- Statutory liability calendar for the month ahead
- Journal posted to your books
Who has to be covered, and at what wage.
| Basis | Provident fund | State insurance (ESI) |
|---|---|---|
| Registration threshold | 20 employees | 10 employees in most states |
| Wage ceiling for coverage | ₹15,000 per month | ₹21,000 gross per month |
| Higher ceiling | Voluntary contribution above the ceiling | ₹25,000 for persons with disabilities |
| Contribution | 12% employee + 12% employer | 0.75% employee + 3.25% employer |
| Monthly deadline | 15th — ECR filed and challan paid | 15th |
| Periodic return | Monthly through the ECR | Half-yearly — 11 Nov and 11 May |
The ₹15,000 provident fund wage ceiling was formally notified on 29 May 2026 under the Code on Social Security 2020. Proposals to raise it have been discussed but not notified. ESI registration is 10 employees in most states and 20 in a handful. Verified as on 03 Aug 2026 — confirm applicability for your state and headcount before acting.
| Item | Position |
|---|---|
| Salary TDS deposit | 7th of the following month |
| Quarterly TDS statement | Form 138 — 31 Jul, 31 Oct, 31 Jan, 31 May |
| Salary TDS certificate | Form 130, issued annually |
| Employee investment declaration | Form 124 |
| Professional tax | State-specific registration, slab and periodicity |
From Tax Year 2026-27 the salary TDS statement is Form 138 (previously 24Q) and the certificate is Form 130 (previously Form 16). Detail on TDS returns.
The labour codes moved the ground under your salary structure.
The four labour codes came into force on 21 November 2025. The consequential change for payroll is the wage definition — basic pay and dearness allowance are expected to make up at least half of total remuneration, which mechanically raises the base for provident fund and gratuity in every structure that had been inflating allowances to keep basic low. Central and state rules are still rolling out, so parts of the picture remain to be clarified. What is not in doubt is that a CTC structure designed under the old assumptions now costs more than it used to, and the businesses discovering this in an inspection are the ones who never revisited it.
Different workforces, different problems.
Structured teams, 5 to 200 people
Salaried staff, CTC structures that need designing rather than copying, and TDS accuracy that employees actually check against their own returns.
Mixed workforce
Monthly-wage workers alongside salaried staff, with provident fund and state insurance applied correctly to each category rather than assumed.
High turnover, variable hours
Constant joiners and exits, daily-wage and contract staff, and settlements that have to be right on short notice.
An India team, no local finance
Companies abroad paying staff here, where nobody at head office can read a PF challan. See global payroll.
Beyond the payroll register
Consultants and contractors paid outside payroll still carry withholding obligations — handled separately, but handled.
Payroll already running badly
We review the current structure, list the compliance gaps we find, and transition without a gap in anybody's salary.
Four steps, on a fixed calendar.
Inputs
Attendance, leave, joiners, exits and any variable pay collected by an agreed date — so nothing waits on a reminder.
Processing
Salaries computed, deductions applied, payslips generated and the bank file prepared for your approval.
Statutory
PF ECR filed and paid, ESIC deposited, professional tax filed, salary TDS deposited — each within its own deadline.
Reporting
Payroll summary, cost report and next month's liability calendar, with the journal posted to your books.
Payroll & labour code training for HR
An 8-week executive certification covering payroll end to end — salary structuring, PF, ESIC, TDS, F&F and the labour codes.
What employers ask.
Is provident fund mandatory for all our employees?
Registration becomes mandatory once headcount crosses 20, and coverage is mandatory for employees whose wages are up to ₹15,000 a month. Above that ceiling, contribution is voluntary — though many employers contribute on actual basic as a matter of policy.
When does ESI apply?
Registration is mandatory at 10 employees in most states, and coverage applies to employees earning up to ₹21,000 gross a month, or ₹25,000 for persons with disabilities. Contribution is 0.75% from the employee and 3.25% from the employer.
What have the labour codes changed for payroll?
The codes came into force on 21 November 2025, and the significant change is the wage definition — basic and dearness allowance are expected to be at least half of total remuneration. Structures that kept basic low to reduce provident fund liability now cost more. Rules are still being notified, so the position should be reviewed rather than assumed settled.
Can you take over payroll that's already running?
Yes, and it is a common way engagements start. We review the current structure, list the compliance gaps we find in writing, and transition to a managed process without a gap in anybody's salary.
Do you handle contractors and consultants?
Yes. Payments outside payroll carry their own withholding obligations, which we handle alongside — separately from the regular payroll register.
Can payroll be bundled with accounting and GST?
Yes, and most clients do. One team, one point of contact and one monthly fee for everything — see Managed Compliance.
For employers.
New Labour Codes: What Changed for Employers
The wage definition and what it does to your payroll cost.
Salary Structure Design and the CTC Split
How the components drive statutory liability.
Form 16 and 16A Mismatch: Fixing It on TRACES
Why the certificate disagrees with the return, and how to correct it.
Related: TDS returns · accounting & bookkeeping · compliance calendar · global payroll for overseas employers.
Tell us your headcount.
Headcount, which registrations are active and how payroll runs today. We'll come back with scope within a few hours. Prefer to talk now? WhatsApp or call us directly.
Ready to hand over payroll?
Tell us your headcount, which statutory registrations are active and how payroll runs today. We'll outline the right engagement and where the gaps are.