Every Indian employer's compliance calendar for payroll. Exact rates, salary thresholds, due dates, penalties for non-compliance, and the filing sequence that keeps you clean with every authority.
Why Indian payroll compliance requires a system, not a memory
Indian payroll compliance spans four different authorities: EPFO (for PF), ESIC (for employee insurance), state government (for Professional Tax), and the Income Tax Department (for TDS on salary). Each has its own rates, thresholds, due dates, and filing formats. Missing any of them attracts penalties and potentially criminal liability for the employer.
Provident Fund (PF) — Complete Reference
Applicability: Mandatory for establishments with twenty or more employees. Once you register, it continues even if headcount drops below twenty.
Contribution rates:
Salary ceiling: Mandatory PF contribution is on salary up to ₹15,000/month (basic + DA). Employees with basic above ₹15,000 can voluntarily opt to contribute on actual basic with employer matching — or cap both contributions at the ₹15,000 ceiling.
Due date: Payment to EPFO by the 15th of the following month. ECR (Electronic Challan cum Return) must be filed monthly.
Penalty: Damages of 5–25% of arrear PF amount for delayed payment. Prosecution for defaults beyond sixty days.
ESIC (Employee State Insurance) — Complete Reference
Applicability: Establishments with ten or more employees (some states have lower thresholds) in notified areas. Applicable to employees with gross salary up to ₹21,000/month.
Contribution rates (2025–26):
Wage ceiling: If gross salary exceeds ₹21,000, ESIC is not deducted. If an employee's salary rises above ₹21,000 mid-contribution period, ESIC continues until the end of the current half-year (April–September or October–March) and then stops.
Benefits covered: Medical treatment for employee and family, hospitalization, maternity benefit (twenty-six weeks), disablement benefit, dependent benefit.
Due date: Payment by the 15th of the following month. Return filed twice yearly (for April–September period by November 11th, for October–March by May 11th).
Professional Tax — State-by-State Reference
PT is a state tax deducted from employee salaries. Each state has its own slabs.
Maharashtra: ₹200/month for employees earning above ₹10,000. Maximum annual deduction: ₹2,500 (collected as ₹300 in February, ₹200 in other months).
Karnataka: ₹200/month for salary above ₹15,000. Below ₹15,000 but above ₹10,000: ₹150/month.
Tamil Nadu: Monthly slabs from ₹0 (for salary ₹21,000 and below) to ₹208 (for salary above ₹75,000).
Telangana: ₹200/month for salary above ₹15,000.
West Bengal: Quarterly slabs. ₹110/quarter for annual income ₹2.4L–₹3.6L. Higher slabs above that.
Gujarat: ₹200/month for salary above ₹12,000.
Due date: typically by the 15th of the following month; some states quarterly.
TDS on Salary (Section 192) — Complete Reference
Applicability: Every employer must deduct TDS from salary when the employee's estimated annual income exceeds the basic exemption limit (₹2.5 lakh for individuals under 60, ₹3 lakh for senior citizens, ₹5 lakh for super senior citizens under the old regime; ₹3 lakh base under new regime).
Process:
1. At year start (April) or joining date, estimate the employee's annual taxable income
2. Reduce by declared deductions (80C investments, HRA exemption, LTA, 80D, etc.)
3. Calculate annual tax liability
4. Divide by twelve to get monthly TDS
5. Re-compute whenever employee submits investment declarations (typically December–January)
Due date: TDS must be deposited by the 7th of the following month.
TDS return: Form 24Q must be filed quarterly (June 30, September 30, December 31, May 31).
Penalty for non-deduction: 1% per month interest. Non-filing of 24Q: ₹200/day.
The monthly compliance checklist
By the 7th: TDS deposit for previous month salary. By the 15th: PF ECR filing and payment. By the 15th: ESIC payment. By the 15th or end of month: PT payment (varies by state).
Quarterly: TDS return Form 24Q (15th of month after quarter end). Half-yearly: ESIC return.
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