What is included in India payroll outsourcing with Versatile?

Monthly payroll runs, PF filing (15th), ESI filing (15th), TDS deposit (7th), professional tax (state-specific), Form 16 issuance, gratuity computation, leave encashment, and full-and-final settlements. Multi-state Shops and Establishments registrations included.

What does India payroll outsourcing cost?

Starts at $250/month for up to 5 employees. Pricing scales with headcount and statutory complexity. Statutory contributions (PF 12%, ESI 3.25%, gratuity 4.81%) are billed at actuals, not marked up.

Do you handle multi-state payroll compliance in India?

Yes. We hold Shops and Establishments registrations across 9 states including Karnataka, Maharashtra, Tamil Nadu, Telangana, Delhi NCR, and West Bengal. Each state has different professional tax slabs and labour welfare fund rules — we handle them all.

Can we outsource payroll without using your EOR?

Yes. Managed Payroll is a standalone service for foreign companies that already have an Indian entity but want to outsource the operational work. We run payroll on your entity, with your CIN, under your existing PF/ESI codes.

Payroll in India · Statutory Compliance Guide

Payroll in India.

India payroll is twelve statutory items on different calendars at different rates depending on the state, the band, and the year. Versatile handles every one of them. Cross-referenced, audit-grade, SOX-ready.

4 yrs On the books

47 Engineers paid · Apr 2026

14 US/UK companies on the entity

0 Notices since founding

Foo Falcon Pvt Ltd · CIN U72900KA2022PTC163007 · Incorporated 28 Jun 2022

India payroll is not a single calendar.

Most global companies expect India payroll to look like US or UK payroll: a single monthly cycle with a few statutory withholdings. The reality is twelve distinct statutory items, each on its own filing calendar, each with state-specific variants, each with audit documentation requirements. The complexity has compounded since India's 2020 Labour Codes which (when fully notified) will replace the older framework. Versatile holds the complete compliance stack and maintains the documentation depth that survives both India audit and US/UK-side SOX or SOC 2 walkthroughs.

PF / EPFO, monthly ECR by 15th

12% employee + 12% employer. Filed via the EPFO unified portal. Versatile runs an exempt PF Trust under Section 17.

ESIC, where applicable

0.75% employee + 3.25% employer for gross under ₹21,000/month. Eligibility re-checked on every revision.

Professional tax, state-specific

Karnataka: ₹200/month. Maharashtra: slab-based. Each state has its own portal and acknowledgement IDs.

TDS, monthly + quarterly

Slab-wise computation per payslip. Quarterly e-TDS (Form 24Q) returns. Annual reconciliation with Form 26AS.

Gratuity, 4.81% monthly accrual

Funded via LIC group gratuity policy. Annual Form L and Form D filings.

Form 16, by 31 May annually

Generated via TRACES portal. Cross-checked against TDS payment evidence.

Shops & Establishments, per state

Versatile holds licences across nine states. Renewed annually.

Audit packet, quarterly

Compiled for every customer's vendor audit cycle: payslip register, PF challans, ESIC eligibility log, professional tax acknowledgements, TDS evidence.

Item	Versatile handles
PF / EPFO	12% × 2, monthly ECR, exempt PF Trust
ESIC	0.75% + 3.25%, gross under ₹21K, eligibility re-checked
Gratuity	4.81% monthly accrual, LIC-funded
Professional tax (Karnataka example)	₹200/month, monthly portal filing
TDS	Slab-wise monthly, quarterly Form 24Q
Form 16	By 31 May via TRACES
Annual audit packet	Compiled by Versatile, customer-ready
Cross-reference depth	Every payslip to challan, every TDS to Form 12BB

Item

Versatile handles

PF / EPFO

12% × 2, monthly ECR, exempt PF Trust

ESIC

0.75% + 3.25%, gross under ₹21K, eligibility re-checked

Gratuity

4.81% monthly accrual, LIC-funded

Professional tax (Karnataka example)

₹200/month, monthly portal filing

TDS

Slab-wise monthly, quarterly Form 24Q

Form 16

By 31 May via TRACES

Annual audit packet

Compiled by Versatile, customer-ready

Cross-reference depth

Every payslip to challan, every TDS to Form 12BB

Questions we hear most.

What is the most common India payroll mistake global companies make?

Underestimating the documentation depth required for audit. Filing the right statutory amounts is necessary but not sufficient. Audit walkthrough requires every payslip to be cross-referenced to its underlying PF challan ID, ESIC eligibility log, professional tax acknowledgement, and TDS payment evidence. Without that cross-reference matrix, audit response is reactive and risky.

What changed with India's 2020 Labour Codes?

Four labour codes (Code on Wages, Industrial Relations Code, Social Security Code, Occupational Safety Code) were passed in 2019-2020 to consolidate 29 older labour statutes. The rules have not been fully notified across all states yet. Until full notification, Versatile files under the old framework. The day the codes go live, our process documentation updates overnight; you do not see the cost.

Does Versatile run an exempt PF Trust?

Yes. Versatile (through Foo Falcon Technologies Pvt Ltd) runs an exempt PF Trust under Section 17 of the EPF Act. Quarterly board minutes, annual audit, trust deed compliance maintained. The exempt Trust gives more direct control over PF investments and faster handling of partial-withdrawal requests vs the EPFO managed scheme.

How does Versatile handle the annual audit packet for customers?

Every quarter we compile a packet: payslip register, PF challans with reference IDs, ESIC eligibility log, professional tax acknowledgements, TDS payment evidence, and Form 26AS pulls. This packet is what supports your external auditor's walkthrough. Across our portfolio, the audit pass rate is 100% (verified Q1 2026).

Hire in India. Without the panic.

Tell me about your first hire. I will reply on email inside 4-6 hours, with a draft offer letter attached. Then my support team takes the depth.

$99-$399 · per employee · per month 5 day onboarding SLA 0 setup or exit fees 1st month free 59 companies served

Payroll in India.

India EOR tailored to your home country.

India payroll is not a single calendar.

PF / EPFO, monthly ECR by 15th

ESIC, where applicable

Professional tax, state-specific

TDS, monthly + quarterly

Gratuity, 4.81% monthly accrual

Form 16, by 31 May annually

Shops & Establishments, per state

Audit packet, quarterly

India payroll, twelve items, every cycle.

Same India operation. Different angle.

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How to Hire in India Without an Entity

Questions we hear most.

Hire in India. Without the panic.