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Payroll, salary TDS, PF, ESIC & professional tax

Authority: EPFO · ESIC · state governments · labour codes

Local staff mean monthly salary TDS, PF, ESIC and state professional tax. Since the labour codes took effect on 21 November 2025, wages under 50% of pay widen the PF and gratuity base.

What to do

Official: confirmed from the law, government notifications and expert sources · Case-specific: whether or how much it applies depends on your company; Adullam assesses it for you in consultation · Example: illustrative only.

MonthlyOfficial

Estimate annual tax, deduct monthly and deposit by the 7th; the new regime is the default.

Source: adullamcorp.com · checked
MonthlyOfficial

From 20 staff: 12% employee + 12% employer (8.33% pension, 3.67% fund), by the 15th. The mandatory wage ceiling is ₹25,000 a month from 17 Sept 2026 (was ₹15,000).

Source: labourlawreporter.com · checked
MonthlyOfficial

From 10 staff: 0.75% employee + 3.25% employer, by the 15th.

Source: adullamcorp.com · checked
MonthlyOfficial

Varies by state; some states charge from ₹25,000 monthly salary.

Source: adullamcorp.com · checked
As neededOfficial

If basic + DA is under 50% of pay, the gap is added back for PF, ESIC and gratuity; central rules notified 8 May 2026.

Source: myndsolution.com · checked
As neededOfficial

Fixed-term staff earn gratuity after one year instead of five.

Source: myndsolution.com · checked
AnnualOfficial

Issue the new Form 130 instead of Form 16.

Source: cleartax.in · checked
AnnualOfficial

Budget 2026: employee PF/ESI deductible if paid by the return due date.

Source: taxguru.in ·

Deadlines


Source: setindiabiz.com · checked
Income tax

Source: adullamcorp.com · checked
EPFO · ESIC

Source: adullamcorp.com · checked
State

Source: taxaj.com ·
TRACES

Source: cleartax.in · checked
Income tax

What we need from you

  • Employment contracts and CTC structure
  • Employee PAN, Aadhaar, UAN
  • Attendance and leave
  • Employee declarations (old regime)

Good to know

Under the labour codes, low-basic, high-allowance structures no longer cut PF or gratuity. Adullam's HR & legal team reviews pay structures and HR policies by industry and state.

Source: adullamcorp.com · checked

Penalties & interest

Damages of 5%–25% a year by length of delay (s.14B) plus 12% interest (s.7Q); ESIC also charges interest and damagesOfficial Source: news.cleartax.in · checked
Penalties are much higher than under the old laws and vary by breach and stateCase-specific Source: myndsolution.com · checked
1.5% a month plus ₹200 a day for late returnsOfficial Source: setindiabiz.com · checked

Our fees

Example: ₹500–₹1,500 per employee a month (minimum applies)Example
Codes issued at incorporation; 1–2 weeks separatelyExample

Recent cases

Confirmed cases plus illustrative examples within real ranges; examples are labelled.

Example

A 25-staff seller paid 30% basic; the 50% rule raised the PF base from November 2025, so pay was redesigned.

Request a consultation

Are any of our Indian filings missing?

Our local accounting team and partner chartered accountant will look with you. The first consultation is free.

Phone+82-10-7641-4018
KakaoTalkceo_adlconsulting
Emailliminae@adullamcorp.com
WhatsApp+82-10-2991-4018
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Payroll · Adullam Tax & Accounting