Payroll, Labour Codes and employer of record
Payroll in India is a monthly salary run plus a calendar of statutory deposits and returns, each with its own penalty. The four Labour Codes, which consolidate 29 earlier central labour laws, changed how wages are defined, and that changes PF, gratuity and bonus calculations.
When you need this
- You run payroll in-house and want it checked, or want it taken over.
- Your salary structure was built before the Labour Codes and you do not know what they cost.
- A foreign company wants to employ people in India without an Indian entity.
- You use contractors and want to know whether they are really employees in law.
- You have staff in several states, each with its own professional tax and labour rules.
What we do
Payroll processing
Salary computation, CTC structuring, payslips and bank disbursement support.
Statutory deductions and returns
PF, ESI, professional tax, labour welfare fund and TDS on salary, with the monthly and annual returns.
Form 16 and quarterly TDS returns
Annual and quarterly compliance for salary TDS.
Labour Codes transition
Under the Code on Wages, allowances above a set share of total remuneration are added back to wages for PF and gratuity. We re-cut your salary structure and quantify the change in employer cost before you alter anything.
Labour compliance
Shops and establishments registration, contract labour, maternity benefit, bonus and gratuity, and state-specific rules.
Employer of record
We become the legal employer. You choose the role, pay and goals; we handle contracts, payroll, statutory compliance and exit.
Contractor review
Misclassification risk, conversion to employment, and structuring for a mixed workforce.
HR documents
Offer, appointment, increment and separation letters that match the law.
How an engagement runs
- Onboarding: employee data, salary structures, registrations, and a parallel run for one month.
- Monthly: attendance and changes in, salary and statutory calculations out, remittance, and filing proofs.
- Yearly: Form 16, annual returns, and a review of the structure against the law.
What we need from you
- Employee master data, offer letters, past payroll registers, PF, ESI and professional tax registrations, and monthly attendance and variable pay.
Questions people ask
- What changes in my payroll under the Labour Codes?
- The main change is the definition of wages. If allowances and other non-wage components are more than a set share of total pay, the excess counts as wages when PF and gratuity are computed. Employer cost can rise even though take-home pay has not changed.
- What is an employer of record, and who is it for?
- An employer of record is a firm that legally employs people on behalf of a foreign company. It suits a small or pilot team. When headcount grows, an Indian subsidiary usually costs less, and we will tell you when you reach that point.
- Does an employer-of-record arrangement create a permanent establishment for the foreign company?
- It can, if the foreign company directs the work closely enough. The structure of the contract and the way the team is managed both matter, and we review them together.
- Can you run payroll for staff in several states?
- Yes. Professional tax, labour welfare fund and shops-and-establishments rules differ by state, and each is registered and filed separately.
Related practices
Engagement terms and fees are agreed after the first conversation, based on scope and complexity.
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