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INDPayroll
Compliance

Indian payroll compliance, explained plainly.

EPF, ESI, TDS, Professional Tax and LWF each have their own rules, thresholds and filing deadlines. Here's what each one actually means - and how INDPayroll automates it so you don't have to track it by hand.

EPF (Employees' Provident Fund)

What it is

A mandatory retirement savings scheme where both employer and employee typically contribute 12% of basic wages each month into the employee's PF account.

Who it applies to

Applies to most establishments with 20 or more employees, and can apply voluntarily below that threshold.

How INDPayroll handles it

INDPayroll calculates the employer and employee PF contribution automatically every cycle and prepares ECR-ready files for filing.

Read the full compliance guide

ESI (Employees' State Insurance)

What it is

A social security and health insurance scheme funded by employer and employee contributions, calculated as a percentage of gross wages up to a government-notified wage ceiling.

Who it applies to

Applies to employees earning at or below the current ESI wage threshold, at establishments covered under the ESI Act.

How INDPayroll handles it

INDPayroll checks each employee's eligibility automatically and calculates the correct contribution - no manual threshold-checking required.

Read the full compliance guide

TDS on salaries

What it is

Income tax that employers must deduct at source from an employee's salary, based on their projected annual tax liability under either the old or new tax regime.

Who it applies to

Applies to any employee whose projected annual income exceeds the applicable exemption limit.

How INDPayroll handles it

INDPayroll projects each employee's annual tax liability under both regimes, applies the lower one by default, and updates the deduction as investment proofs are submitted through the employee portal.

Professional Tax (PT)

What it is

A state-level tax on salaried income. Rates, slabs and whether it applies at all vary by state - not every state levies Professional Tax.

Who it applies to

Applies to employees working in states that levy Professional Tax, based on that state's income slabs.

How INDPayroll handles it

INDPayroll applies the correct state-specific PT slab automatically based on each employee's work location.

Labour Welfare Fund (LWF)

What it is

A small, state-administered welfare contribution from employers and employees, typically deducted half-yearly or annually depending on the state.

Who it applies to

Applies in states that have notified an LWF scheme, usually to employees above a minimum wage threshold.

How INDPayroll handles it

INDPayroll tracks each state's LWF schedule and includes it automatically in the relevant payroll cycle.

Common questions

Do all these compliance rules change every year?
Some do - wage ceilings, PT slabs and tax regime rules are updated periodically by central and state governments. INDPayroll's calculation engine is refreshed monthly so your payroll always reflects current rules.
What happens if I miss a PF or ESI filing deadline?
Late or incorrect filings can result in penalties and interest charges from the relevant government department. Automating calculations and filing reminders is the most reliable way to avoid this.
Does Professional Tax apply to every business in India?
No. Professional Tax is levied by individual states, and not every state has a Professional Tax law. INDPayroll only applies it where relevant based on each employee's work location.

Get Free Payroll Compliance Checklist

Our complete checklist covers PF, ESI, TDS & PT compliance in FY 2026-27. Leave your details and our team will get it to you.

We'll only use your details to get the checklist to you. No credit card needed.

One missed PF deadline costs more than a year of this.

Interest and damages under EPFO start the day you are late. INDPayroll files on time by default - free for your first 10 employees.

PF, ESI, TDS and PT on every run ₹0 to start · no card · no setup fee