Payroll management services for Indian businesses.
End-to-end salary processing, statutory deductions and compliance filings under one CA-supervised desk. Pay your team accurately. Stay 100% compliant. EPF and ESI by the 15th. TDS by the 7th. Form 16 by 15 June every single year.
Trusted by 500+ Indian businesses · 4.8 Google Rating · 50,000+ payslips a year · Offices in Kolkata, Delhi, Gurugram, Pune
Reviewed by CA & CS Team · Regikart · Verified for EPF MP Act 1952, ESI Act 1948, Income Tax Act 1961 · Last updated 26 May 2026
Payroll is a regulated monthly workflow.
Payroll management services in India cover salary calculation, statutory deductions (EPF, ESI, PT, TDS), monthly challans, quarterly returns, payslips and Form 16 issuance. EPF applies at 20+ employees, ESI at 10+ employees (gross wages up to Rs 21,000).
Late deposits attract 12% interest plus damages up to 25% under the EPF and MP Act 1952. Regikart runs it as a CA-supervised process for 500+ Indian businesses pan-India.
| Parameter | Detail |
|---|---|
| Governing Acts | EPF and MP Act 1952, ESI Act 1948, Income Tax Act 1961 (Sec 192), state PT Acts |
| Applicable to | All employers with paid employees in India |
| EPF threshold | 20 or more employees |
| ESI threshold | 10 or more employees (gross wages up to Rs 21,000) |
| Deposit deadline | PF and ESI by 15th; TDS by 7th of following month |
| Penalty | 12% p.a. interest (Sec 7Q) + damages up to 25% (Sec 14B) |
| Authority | EPFO, ESIC, CBDT, respective State Govt |
More than salary computation - it is a monthly compliance cycle.
Payroll management is the end-to-end process of calculating employee compensation, deducting statutory contributions, depositing them with the government, and issuing payslips and statutory certificates under the EPF and MP Act 1952, ESI Act 1948 and the Income Tax Act 1961.
In India, payroll is a regulated workflow covering net pay calculation, EPF and EPS contributions on basic plus DA, ESI contributions on gross wages up to Rs 21,000, TDS under Section 192, Professional Tax under state Acts and Labour Welfare Fund contributions. Each component has its own form, portal and deadline.
Outsourced payroll management services in India bundle these statutory tasks with software, employee self-service and CA review, so business owners get one bill, one point of contact and one audit-ready record set. Errors trigger interest, damages, and in some cases criminal prosecution of directors and key managerial personnel.
Key terms you should know
CTC (Cost to Company)
Total annual cost an employer incurs per employee, including employer PF, gratuity and bonus components built into the offer letter.
Gross salary
Basic plus HRA plus allowances before any statutory deductions are applied to the monthly pay cycle.
Net salary (take-home)
Gross minus EPF, ESI, Professional Tax and TDS - the amount that actually credits to the employee's bank account.
EPF wages
Basic plus DA, capped at Rs 15,000 per month for mandatory contribution under the EPF and MP Act 1952.
ESI wages
Gross wages excluding annual bonus, capped at Rs 21,000 per month for coverage (Rs 25,000 for employees with disability).
Every Indian employer with paid employees runs statutory payroll.
Applicability of each statute differs by headcount and wages - this table maps the trigger and the wage condition for the five core deductions.
| Statute | Applicability threshold | Wage condition |
|---|---|---|
| EPF (EPFO) | 20 or more employees | Basic + DA up to Rs 15,000/month is mandatory |
| ESI (ESIC) | 10 or more employees in notified areas | Gross wages up to Rs 21,000/month (Rs 25,000 for PwD) |
| TDS on salary | Any employer paying salary above exemption limit | As per applicable tax slab (Section 192) |
| Professional Tax | State-specific (Maharashtra, Karnataka, WB, Gujarat, etc.) | Slabs vary by state |
| Labour Welfare Fund | State-specific, half-yearly | Per Act applicable |
EPF and ESI by 15th of the following month; TDS by 7th of the following month (30 April for March deductions). An employer with 25 employees in Pune crossing the 20-employee EPF threshold must register with EPFO within 30 days and begin monthly compliance from the next wage month.
Six services, one CA-led payroll desk.
1. Monthly Salary Processing
- CTC structuring, salary calculation, variable pay, reimbursements and arrears.
- Bank advice file generation in your bank's format for NEFT or RTGS payout.
- Cut-off calendar locked at onboarding to remove month-end scramble.
2. Statutory Deductions and Challans
- PF ECR, ESIC challan and Professional Tax challan prepared and validated.
- Labour Welfare Fund and TDS challan (ITNS 281) ready before due date.
- Two-stage reminders so payment never slips past the 15th or 7th.
3. Returns and Certificates
- Quarterly Form 24Q (TDS), half-yearly ESI returns and annual EPF returns.
- Annual Professional Tax returns filed state-by-state on schedule.
- Form 16 issued to every employee by 15 June each year.
4. Employee Self-Service
- Online payslip access and tax investment declarations on the employee portal.
- Leave and reimbursement workflows routed for approval.
- Form 16 download portal active each June for downloads through the year.
5. Compliance Audit and Representation
- EPFO and ESIC inspection support with documents and reconciliations.
- Response drafting to notices under Section 7A (EPF) and Section 45A (ESI).
- TDS notice reconciliation and 24Q to TRACES alignment in-house.
6. CA-Supervised Payroll Review
- Monthly CA sign-off on payroll register and statutory deductions.
- Reconciliation between payroll, books of accounts and bank payouts.
- Quarterly tax recompute and investment-proof review by the CA.
Seven reports, before salary day.
Standard pack delivered every cycle, ready for finance review, auditor scrutiny and director-level oversight.
- Payroll register (employee-wise gross, deductions, net pay).
- Salary structure variance report (CTC vs actual).
- Statutory deductions summary (PF, ESI, PT, TDS).
- Bank advice file (NEFT / RTGS, in your bank's format).
- Headcount and joining/exit movement report.
- Full and final settlement statements for exits.
- CTC reconciliation and provision report (gratuity, leave encashment, bonus).
Common payroll pain points - and how Regikart solves them
Last-minute salary delays due to attendance errors
Locked cut-off calendar and automated attendance import from your HRMS so the input gate closes on a fixed day every month - no late corrections that ripple into the payslip.
PF and ESI deposits missed; 12% interest accruing
Calendar-driven challan workflow with two-stage reminders. The Regikart desk monitors the 15th and 7th deadlines and triggers internal escalation 48 hours before any due date.
Wrong tax projections leading to year-end TDS shocks
Quarterly tax recompute and investment-proof review by the engagement CA so the December and January payslips reflect the right deduction, not a year-end balloon recovery.
Form 16 mismatch with TRACES data
End-to-end 24Q filing and TRACES reconciliation in-house. Form 16 generated only after the quarterly return is processed and the deductee report matches the payroll register.
Seven stages from onboarding to returns and certificates.
Onboarding and Data Lift
Employee master data, salary structures, PAN/Aadhaar, bank details and current PF/ESI registration numbers collected. CA review of CTC structure for tax efficiency.
Cut-off and Inputs
Attendance, leave, overtime, joinings, exits, increments and reimbursements captured from your HRMS or our self-service portal by an agreed cut-off date.
Salary Computation
Gross, deductions (EPF, ESI, PT, TDS under Section 192) and net pay calculated. Tax projections updated based on declared and actual investments.
Review and Approval
Draft payroll register and statutory summary shared for client sign-off. Variance report flags any salary moving outside normal range.
Disbursement
Bank advice file uploaded for salary payout. Payslips released to employee self-service portal immediately after payout confirmation.
Statutory Payments
PF and ESI challans generated and paid by 15th; TDS (ITNS 281) paid by 7th of next month. EPFO ECR uploaded and ESIC return filed.
Returns and Certificates
Form 24Q quarterly, Form 16 by 15 June, half-yearly ESI returns and annual PT returns filed on schedule with acknowledgements shared.
What you share at onboarding
Employer-level
- Company PAN, TAN, GST certificate.
- EPFO establishment registration code (or registration if first time).
- ESIC employer code (or registration if first time).
- Professional Tax registration (state-specific).
- Authorised signatory DSC for EPFO ECR and TDS returns.
Employee-level
- PAN, Aadhaar, current UAN (if any), bank account details.
- Appointment letter, CTC breakup, KYC documents.
- Form 12BB (tax declaration), Section 10 exemption proofs.
- Form 11 (EPF basic details) and ESIC IP declaration.
Transparent PEPM pricing, no setup gimmicks.
Regikart payroll fees follow a per-employee-per-month model. Fixed CA fee plus a clear PEPM rate. Government deposits (PF, ESI, PT, TDS) are passed through at actuals - never marked up.
Up to 25 employees
Small teams and startups
Payroll + PF + ESI + PT + TDS + Form 16
26 to 100 employees
Growing SMBs
Above + employee self-service portal
101 to 500 employees
Mid-market organisations
Above + monthly CA review call
500+ employees
Large enterprises
Dedicated payroll manager + HRMS integration
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.
Starting fee: Rs 49 per employee per month for high-volume contracts. Indian payroll outsourcing typically ranges from Rs 30 to Rs 500 PEPM depending on headcount, scope and number of states.
Share your headcount and current pain points. We send a fixed monthly quote, no commitment. Free 15-minute consultation available Mon-Sat, 9:00 to 19:00 IST.
Timelines you can build a calendar around.
| Stage | Time |
|---|---|
| Onboarding and data lift | 5 to 7 working days |
| First live payroll cycle | Within 10 working days of onboarding |
| EPFO registration (if first time) | 7 to 15 working days |
| ESIC registration (if first time) | 10 to 15 working days |
| Monthly cycle (inputs to payslip) | 3 to 5 working days |
Statutory deadlines you cannot miss: PF/ESI by 15th, TDS by 7th of next month, Form 24Q quarterly (31 July, 31 Oct, 31 Jan, 31 May), Form 16 by 15 June each year.
Three risks disappear on day one.
Penalty insulation
Late PF deposit attracts 12% p.a. interest under Section 7Q and damages up to 25% under Section 14B of the EPF and MP Act 1952. Calendar-driven workflows eliminate this risk on day one.
Director protection
Under Section 14A (EPF) and Section 86 (ESI), directors face personal prosecution for default. Outsourcing creates a documented compliance trail that survives audit and inspection scrutiny.
Cost efficiency
Internal payroll executives cost Rs 4 to 8 lakh per year before software. PEPM outsourcing is typically 60% to 80% cheaper for Indian SMEs with the same statutory coverage.
“We moved 90 employees from in-house payroll to Regikart. Zero PF defaults, Form 16 went out on 12 June, and our auditor closed payroll in one sitting. The PEPM cost is less than what we paid our previous executive.”
Finance Head, services company, Pune (140 employees)
“Their CA team caught a Rs 4.2 lakh TDS short-deposit before the quarter closed. That kind of review does not happen with software-only providers.”
HR Manager, manufacturing SME, Gurugram (60 employees)
With offices in Kolkata, Delhi, Gurugram and Pune, Regikart serves businesses across India both in-person and remotely. Multi-state PT, state-specific LWF and state-wise minimum wage are handled by location-trained staff.
500+ Businesses Served · 4.8 Google Rating · 50,000+ Payslips Issued Annually · 15+ Years CA Practice
Three delivery models compared - line by line.
| Parameter | In-house executive | Software-only vendor | Regikart (CA-led) |
|---|---|---|---|
| Monthly cost (50 employees) | Rs 35,000 to 60,000 | Rs 8,000 to 15,000 | Rs 3,950 (PEPM) |
| Statutory liability | On the company | Shared, often disclaimed | Co-owned with documented SLA |
| PF/ESI/TDS deposit | Manual, deadline-driven | Self-service - you must act | Done by us before deadline |
| CA review of payroll | No | No | Monthly sign-off |
| Tax projection accuracy | Variable | Software-default | Quarterly CA recompute |
| Form 16 issuance | Manual TRACES download | Bulk via portal | Filed, reconciled and issued |
| Inspection support | Internal team scrambles | Out of scope | Included |
The statutes that govern this work.
EPF and MP Act 1952
Governs EPF, EPS and EDLI. Threshold of 20 employees triggers mandatory registration with EPFO and monthly compliance from the next wage month.
ESI Act 1948
Governs ESI medical and cash benefits. Threshold of 10 employees in notified areas; wage ceiling of Rs 21,000 per month (Rs 25,000 for PwD).
Income Tax Act 1961, Section 192
TDS on salary deducted at average tax rate; deposit by 7th of next month (30 April for March deductions). Quarterly Form 24Q filed on TRACES.
Code on Social Security 2020
Consolidates EPF, ESI, gratuity and maternity benefits and extends statutory coverage to gig and platform workers under a unified social security framework.
Code on Wages 2019
Uniform wage definition. Basic must be at least 50% of CTC; PF base calculation revised to reflect the new definition of wages.
State Professional Tax Acts
For example, the Maharashtra State Tax on Professions, Trades, Callings and Employments Act 1975. Slabs and deposit cycles vary state by state.
EPF default
Interest at 12% per annum under Section 7Q plus damages of 5% to 25% under Section 14B for delayed deposit.
ESI default
Interest at 12% per annum plus damages up to 25% under Section 85B of the ESI Act 1948 for late challan payment.
TDS default
Interest at 1% per month for late deduction and 1.5% per month for late deposit under Section 201(1A); prosecution under Section 276B for non-payment.
Personal liability
Section 14A (EPF) and Section 86 (ESI) deem persons in charge as guilty - directors and key managerial personnel face prosecution.
Regulatory authorities and portals: EPFO · ESIC · Income Tax Department (TRACES) · India Code.
What is coming up - month after month.
| Recurring due date | What is filed or deposited |
|---|---|
| 7th of every month | TDS on salary deposit (Section 192) for the previous month |
| 15th of every month | EPF ECR and ESIC challan deposit for the previous month |
| Last day of every month | Professional Tax deposit in most states |
| 31st July / 31st Oct / 31st Jan / 31st May | Form 24Q quarterly TDS return on TRACES |
| Half-yearly (May / November) | ESI returns and state-wise Labour Welfare Fund remittance |
| 15 June each year | Form 16 issuance to every employee on the rolls |
| 30 April (March deductions) | Special TDS deposit deadline for March salary deductions |
Do not miss these deadlines
Late PF or ESI deposit by even one day triggers 12% per annum interest plus damages up to 25% under Section 14B of the EPF and MP Act 1952. Late TDS deposit attracts 1.5% per month under Section 201(1A) and prosecution risk under Section 276B. Form 16 must be issued by 15 June each year.
Payroll management - answered.
Questions, answered.
If you don't see your question here, write to us - a senior partner usually replies within a couple of business hours.
Still have questions?
Book a free 20-minute consult with a senior partner - we'll walk through your case and outline next steps.
Talk to a partner →Quick answers
- Q: EPF wage ceiling for mandatory contribution?
- A: Rs 15,000 per month basic plus DA.
- Q: ESI salary limit in 2026?
- A: Rs 21,000 per month gross wages (Rs 25,000 for employees with disability).
- Q: When is Form 16 issued?
- A: By 15 June each year for the previous financial year.
- Q: TDS deposit due date?
- A: 7th of the following month; 30 April for March deductions.
- Q: How fast can Regikart go live?
- A: Live payroll within 5 to 7 working days from data handover.
What pairs well with payroll management
Payroll rarely sits alone. Most clients also pair it with registration, accounting and tax engagements at Regikart.
EPF Registration
First-time EPFO establishment registration at the 20-employee threshold.
ESI Registration
ESIC employer code for businesses crossing the 10-employee threshold.
Accounting Services
Monthly books closing aligned with the payroll cycle and statutory deposits.
Income Tax Return Filing
ITR for the company plus individual returns for employees with Form 16.
Hand over your payroll. Sleep better.
Regikart brings 15+ years of CA practice, offices across Kolkata, Delhi, Gurugram and Pune, and a payroll desk that has run more than 50,000 payslips a year for Indian SMEs and growing businesses. PEPM model, fixed monthly cost, documented compliance trail, one number to call when EPFO or ESIC sends a notice.
We respond within 2 working hours, Mon to Sat 9:00 to 19:00 IST. Free 15-minute payroll diagnostic.
Reviewed by CA & CS Team · Regikart · Last updated 26 May 2026 · Next review 26 November 2026