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Payroll and Labour Code compliance that keeps your team paid right and your filings clean.

PF, ESI, professional tax and the new Labour Codes — accurate monthly payroll processing and statutory filings, so payslips are correct and compliance never falls behind as your headcount grows.

Updated Jul 2026Read 6 minReviewed by Founders Bridge
On this page +
  1. What this covers
  2. What's included
  3. How we deliver it
  4. What's at stake
  5. Where it fits
  6. Pricing
  7. FAQs
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Payroll compliance built for a growing team

Payroll compliance gets harder exactly when you can least afford mistakes — as you hire past the thresholds that trigger PF and ESI registration, add employees across states with different professional tax rules, and now navigate the Labour Codes' phased rollout changing how wages, working hours and social security are defined.

We run your monthly payroll cycle — salary computation, statutory deductions, payslip generation — and file every associated return: PF (EPFO), ESI (ESIC), professional tax by state, and the Labour Code-aligned wage structuring that keeps your compliance current as the rules evolve.

Why the Labour Codes matter now

The new Labour Codes redefine 'wages' for PF and gratuity calculation purposes, which can materially change your statutory contribution base. Getting your wage structure aligned early avoids a disruptive payroll restructuring later.

What you get

What's included

A single monthly engagement covers processing and filing:

Payroll processing

Monthly salary computation, statutory deductions and payslip generation for your full team.

PF (EPFO) compliance

Provident Fund registration, monthly contribution deposit and ECR filing.

ESI compliance

Employee State Insurance registration and monthly contribution filing where applicable.

Professional tax

State-wise professional tax deduction and remittance for every applicable location.

Labour Code alignment

Wage structuring reviewed against the Labour Codes as rules phase in state by state.

Form 16 (salary)

Annual salary TDS certificates issued to every employee.

Crossed 20 employees and not sure what's now mandatory?

PF and ESI thresholds trigger new obligations fast — let's check what applies to you.

How it works

How we run your payroll compliance

1. Onboarding & structuring

We review your current salary structures and align them to PF, ESI and Labour Code requirements before the first cycle.

2. Monthly processing

Attendance and variable inputs are collected, payroll is run, and payslips are generated ahead of pay day.

3. Statutory filing

PF, ESI and professional tax contributions are deposited and returns filed within each statutory deadline.

Typical timeline

Once onboarded, payroll runs on a fixed monthly cycle with statutory deposits completed by the 15th of the following month.

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What's at stake

What payroll mistakes actually cost

Payroll is the compliance area where errors are most personal — they land on the people who trust you most, your employees — and where the legal exposure is sharpest, because a chunk of what you process is money you've deducted from someone else's salary and are obliged to pass on.

Provident Fund and ESI are the clearest example. When you deduct an employee's PF or ESI contribution and don't deposit it in time, you don't just owe the amount — you owe interest and damages on it, and because it's the employee's own money withheld in trust, chronic non-deposit can expose the company and its officers to prosecution, not merely penalty. Professional tax, which varies state to state, carries its own late fees and interest. None of these are large per employee, but they scale with headcount and they compound every month a filing is missed.

The less visible cost is trust. A payslip that's wrong, a Form 16 that doesn't reconcile, a PF contribution an employee can't see in their EPFO passbook — each one quietly erodes confidence in the company, and for a startup competing for talent that's a real cost. Getting salary TDS wrong compounds it, because the employee discovers the problem when they file their own return and find the credit missing.

The exit is where gaps surface

Full-and-final settlements, gratuity, and the last Form 16 are when a departing employee scrutinises your payroll most closely — and, increasingly, where disputes and even claims originate. Clean, consistent payroll through the year is what makes exits uneventful.

Where it fits

Wage structure, the Labour Codes, and the rest of your stack

Good payroll starts before the first salary run, with how the pay package is structured. The way basic, allowances and reimbursements are split determines your PF base, your ESI applicability and your employees' take-home — and India's four new Labour Codes, which consolidate dozens of older laws, redefine "wages" in a way that directly affects PF contributions and gratuity. Structuring pay correctly now avoids a costly re-basing later.

Because salary carries TDS, payroll runs hand-in-glove with TDS filings, and every payroll cost has to land accurately in your books — which is why we run it alongside monthly accounting and keep every statutory deadline on one compliance calendar. The result is payslips, filings and certificates that all reconcile to each other.

Common belief

"We're small enough that PF and ESI don't apply to us yet."

The reality

Thresholds are lower than most founders think, and once crossed, registration is backdated. It's far cheaper to get the applicability call right early than to regularise later.

Common belief

"Payroll is just calculating salaries in a spreadsheet."

The reality

It's statutory deductions, multi-state professional tax, PF/ESI deposits, salary TDS and compliant payslips — each with a deadline and a penalty. The spreadsheet is where the errors hide.

Cost

Pricing

Pricing is typically per-employee, per month, scaling with headcount and the number of states you operate payroll in. See our pricing page for indicative ranges, or get an exact, itemised quote in one call.

Answers

Frequently asked questions

At what headcount does PF become mandatory?+
PF registration is mandatory once you cross 20 employees, though voluntary registration below that threshold is also common and something we can advise on.
Do all employees need ESI?+
ESI applies to employees earning below a defined wage ceiling, at establishments crossing the applicable employee-count threshold — we assess this as part of onboarding.
How do the Labour Codes affect existing payroll?+
The new wage definition can shift how much of a salary counts toward PF and gratuity calculations, which may require restructuring CTC components — we handle this transition.
Can you handle payroll across multiple states?+
Yes, including state-specific professional tax rates and any state-level labour welfare fund contributions.

Get payroll compliance off your plate.

Accurate payslips, on-time statutory filings, every month — for a team of any size.

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