Payroll Outsourcing in India

• Focus more on your core business
• Remain compliant with tax laws in India
• Be agile and responsive in the Indian market

Edge–The Payroll Outsourcing Provider You Can Trust

Payroll tasks are time-consuming and challenging, especially in countries like India, with complex rules and regulations surrounding employment and compensation. With numerous years of payroll expertise, we help you ensure your employees in India are paid accurately and on time. Beyond employee salaries, we also take care of payroll compliance, so you don’t have to!

Whether you wish to outsource payroll in Delhi, Mumbai, Bangalore, Chennai, or Cochin, we’ve got you covered across India!

Our Payroll Processing Services In India

If we’re ever asked to describe our payroll services in 3 words, we would say, “Cost-Effective, Flexible, and Secure.”

Our Services Are Cost-Effective

Though you pay us for managing payroll, we help you stay on the government’s good side by paying your employees accurately on time and taking care of all applicable taxes and local regulations. This way, you can avoid hefty fines and penalties.

In addition, we are way more inexpensive than hiring an in-house payroll team. But we still work as an extension of your in-house departments, which allows you to save more money in the long run.

Our Services Are Flexible

Are you a small business with a small payroll processing requirement? No problem, we have got you covered!

Edge’s payroll outsourcing services are designed and can be customized to fit your business needs and niche. Even better, we can scale up or down our payroll services whenever you want us to. This is particularly beneficial if you often have seasonal employees or freelancers working for your business.

Our Services Are Secure

We take payroll data security seriously. We have stringent measures to safeguard and protect your employee data, business details, and all other sensitive data. With Edge as your Indian payroll outsourcing provider, you can rest assured focus on your business core functions and employee productivity without worrying about payroll errors or non-compliance.

How Does Edge’s Payroll Outsourcing Process Work?

There are a lot of things to consider when processing payroll in India. The salaries should be calculated accurately without errors, the pay benefits should be considered, and you should also withhold and remit income taxes and applicable social security payments. Carrying out all these payroll processes in-house will not only prove to be expensive in the long run, but it may also affect your core business functions.

With Edge’s combination of payroll processing expertise, proactive approach, and proven track record, we can take care of your payroll operations so you can focus on growing your business.

Our capable payroll professionals can:

• Calculate employee salaries (base payment, overtime, incentives, bonuses, paid holidays, etc.)
• Apply deductions such as payroll taxes, social insurance, etc.
• Send you detailed monthly reports about your payroll functions.
• Transfer the approved payment to every employee’s bank account (If you don’t already have bank accounts for your employees, we can take care of that).
• Send monthly payslips, invoices, and reports via email to employees and you.
• Fill and submit tax and other government forms.
• Carry out the necessary legal procedures if an employee leaves your company.

Outsource Your Payroll To Edge

Whether you plan to run payroll in various cities across India or just a single city, we have a payroll outsourcing model that would fit your needs. We promise accurate payroll processing and governmental compliance every single time. So, why not give our payroll experts the chance to process your payroll?

Call us for a free consultation or to discuss your business needs.

Guide To Payroll Processing & Compliance In India

Depending on the business size, type, and industry, there are many laws a business has to abide by in India.

Employee Salary & Benefits

Payment of Wages Act

Established in 1936, this rule ensures employees across India are paid for their work on time. According to the act, companies with less than 1000 employees are supposed to pay their staff by the 7th of every month, whereas companies with more than 1000 employees should pay their staff before the 10th of every month.

The salaries should be paid by cash or cheque, but can also be bank transferred with the employee’s consent.

Minimum Wages Act

The Minimum Wages Act was brought into effect way back in 1948 and has ever since been regularly updated. The rule prevents the exploitation of labor by setting a minimum wage. The exact rate varies from one state to the other. This is because the minimum wage is determined based on factors like the cost of living, type of employment, payment frequency (hourly, weekly, or monthly), etc.

Payment Bonus Act

As the name suggests, the Payment Bonus Act governs the annual bonuses an employee is entitled to. The bonus is typically calculated based on the employee’s compensation and the organization’s annual profits.

To be eligible for bonuses and other allowances, an employee must have worked for their respective employer for at least 30 working days. Their monthly salary should be INR 21,000 or less.

Maternity Benefits Act

This act entitles women employees to take paid leave from work during maternity. The rule applies to all companies with over 10 employees and is one of the most important payroll regulations an organization should follow.

When it comes to eligibility criteria and terms of maternity benefits, here’s what you should know.

• A female employee should have worked at least 80 days within the past 12 months for their respective employer to be eligible to receive paid maternity leave.
• The duration of maternity leave is 26 weeks.
• In addition to maternity leave, a female employee is eligible for 8 weeks of prenatal leave.
• Daily payment during the maternity period is calculated based on the average daily wage.
• After the 26-week leave period, the women employee is entitled to work from home (depending on the nature of the work).

Social Security

Insurance

The employee insurance covers all unforeseen circumstances, such as medical emergencies, accidents at the workplace, maternity leave, etc. Both the employer and the employee should contribute to the insurance every paycheck.

Since only employees earning less than INR 21,000 are eligible for insurance, you should always keep an eye on the appraisal cycle. When an employee starts earning more than INR 21,000, the contributions should be continued till the end of the ongoing contribution cycle, which lasts 6 months (divided from AprThethen from October to March).

Provident Fund (PF)

PF is the most widespread social security contribution for employees in India. It applies to organizations with 20 employees or more.

Labor Welfare Fund (LWF)

This specific scheme applies to organizations in certain industries and aims to improve working conditions and safety. The contributions are decided by the state governments and hence vary from state to state. In some states, the contributions are made every 6 months, while in others, it happens annually.

Here’s the list of states where LWF is mandatory.

• Andra Pradesh
• Chandigarh
• Chattisgarh
• Delhi
• Goa
• Gujarat
• Haryana
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Odisha
• Punjab
• Tamil Nadu
• Telangana
• West Bengal

Gratuity

Gratuity applies to most organizations in India, including NGOs, educational institutions, and hospitals. To be eligible for gratuity, the employee should have completed at least 5 years of service with their respective organization. Rather than a set percentage, a formula (based on the employee’s salary and years of service) is used to calculate the payable gratuity.

Depending on whether or not an employee is covered by the Gratuity Act, two different formulas should be used.

For employees who aren’t covered: (15 x Employee Salary x Tenure of Working) / 26

For employees who are covered: (15 x Employee Salary x Tenure of Working) / 30

Tax Deducted at Source (TDS)

Regulatory compliance when it comes to taxes is very important when you run an organization in India. TDS is the part of an individual’s income that should be paid to the tax authorities. The confusing thing about taxes is that they are different for every employee.

Here are the tax slabs for employees. The TDS for each employee is calculated using these figures.