Payroll Outsourcing Services India — PF, ESIC & TDS Compliance Fully Managed

By JAI HR  ·  Updated May 2026  ·  9 min read

JAI HR Management Consultancy Services LLP provides end-to-end payroll outsourcing services in India — covering salary processing, statutory compliance management (PF, ESIC, TDS, PT, Gratuity, LWF), payslip generation, regulatory filing and audit-ready MIS reporting. ISO 9001:2015 certified with 30+ years of HR and workforce management experience, JAI HR manages payroll for SMEs, large enterprises and organisations with contract workforces across Manufacturing, Construction, FMCG, Logistics, Healthcare and IT sectors. The payroll outsourcing service operates on defined monthly SLAs — payroll processed and payslips issued within agreed timelines, statutory challans filed on or before due dates, with full compliance documentation provided to clients each month.

Payroll compliance in India is complex and continuously evolving. In 2025 alone, significant changes were made to TDS slabs under the new tax regime, PF contribution rules for international workers, and ESIC coverage thresholds. Organisations that manage payroll in-house require dedicated, trained payroll professionals who stay current with these changes — and bear the compliance risk directly. Payroll outsourcing to an experienced provider like JAI HR transfers this complexity and risk, delivering guaranteed compliance, error-free payslips, and on-time statutory filing at a cost typically lower than maintaining an equivalent in-house payroll team.

What Does Payroll Outsourcing Include in India?

Payroll outsourcing is the delegation of all payroll processing and statutory compliance activities to a specialist external provider. The employer retains full control over pay policy, headcount and compensation structures — while the outsourcing provider handles all calculation, filing, reporting and compliance activities.

Payroll outsourcing means an external provider manages your salary calculations, PF, ESIC, TDS filings, and payslips each month on your behalf.

JAI HR's payroll outsourcing service covers: (1) monthly payroll processing including variable pay, overtime, LOP (Loss of Pay), reimbursements, bonus and incentive computation; (2) PF ECR (Electronic Challan Return) filing with EPFO on or before the 15th of each month; (3) ESIC monthly contribution filing on or before the 15th; (4) TDS computation, quarterly 24Q return filing and annual Form 16 issuance; (5) Professional Tax (PT) registration, computation and filing for all applicable states; (6) Gratuity provision computation; (7) Labour Welfare Fund (LWF) deduction and remittance; (8) payslip generation and secure digital delivery to employees; and (9) payroll MIS reports for management, finance and audit use. All deliverables are bound by a monthly SLA schedule agreed at onboarding.

What Statutory Compliances Are Required for Payroll in India?

Compliance Applicable To Rate (2026) Filing Deadline
Employees' Provident Fund (EPF) Employers with 20+ employees; salary up to ₹15,000/month covered mandatorily 12% employer + 12% employee (of Basic + DA) 15th of following month (ECR)
ESIC Employers with 10+ employees; employees earning ≤ ₹21,000/month 3.25% employer + 0.75% employee 15th of following month
TDS on Salary All employers; employees earning above basic exemption limit Per applicable slab (old/new regime) 7th of following month; quarterly Form 24Q
Professional Tax (PT) State-specific; applicable in Maharashtra, Karnataka, West Bengal and others Up to ₹2,500/year per employee State-specific (usually monthly/quarterly)
Gratuity Employers with 10+ employees; employees with 5+ years service 15/26 × Last Basic Salary × Years of Service Provision monthly; payment on exit
Labour Welfare Fund (LWF) State-specific; Maharashtra, Karnataka, Gujarat and others State-specific (₹6 to ₹50+ per employee) Half-yearly or annual (state-specific)

Why Outsource Payroll to JAI HR?

Zero Compliance Penalties

JAI HR guarantees on-time statutory filing for PF, ESIC, TDS and PT. All challans are filed before due dates with proof shared with the client. Non-compliance penalties fall under JAI HR's SLA liability framework.

Dedicated Payroll Team

Each client is assigned a dedicated payroll manager and a compliance officer — available via email and phone throughout the month. No shared queues or chatbot-only support.

Contract Workforce Payroll

Specialist capability for contract and third-party workforce payroll — on-roll and off-roll headcount tracking, contractor compliance management, and PF/ESIC for blue-collar and contract employees.

Multi-State Compliance

PT, LWF and Shop & Establishments Act compliance managed across all states where the client operates — Maharashtra, Karnataka, Telangana, Tamil Nadu, Gujarat, Delhi and others.

Audit-Ready Reports

Monthly MIS reports in audit-ready format — payroll register, cost-centre summaries, statutory liability statements, and reconciliation between payroll and GL. All data retained for 7 years per statutory requirements.

New Tax Regime Support

Payroll processed under both old and new tax regimes (as per employee declaration) with automatic recomputation for mid-year regime changes. Form 10-IEA processing managed for eligible employees.

Frequently Asked Questions — Payroll Outsourcing India

Outsource Your Payroll to JAI HR

PF, ESIC, TDS, PT — all compliances managed. Audit-ready reports. Dedicated payroll team. Get a no-obligation payroll outsourcing quote today.

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JAI HR Management Consultancy Services LLP
Mumbai, Maharashtra, India
MEA Licence: B-2016/MUM/PART/100/5/10542/2024  |  ISO 9001:2015 Certified
Established: 1994  |  Contact Us