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● 20-Year Zero Statutory Penalty Record

Payroll Outsourcing in India — Accurate, On-Time, Every Month. Backed by 20 Years.

TMS is India's compliance-first managed payroll service. We run the full monthly cycle — attendance inputs, salary disbursal, PF, ESIC, PT, LWF, TDS filings, payslips — so you never chase a deadline or face a statutory notice. Unlike software that automates calculations but leaves compliance to you, TMS's same dedicated SPOC owns your payroll end to end, every month, with a 20-year zero-penalty track record behind every filing.

Accurate, on-time payroll across every Indian state — backed by 20 years of zero penalties.

8,500+
Employees on payroll
100+
Cities covered
28 states
Statutory coverage
0
Penalties · 20 yrs

Payroll done right. Every month. Without you chasing.

Indian payroll is high-stakes: late filings mean penalties, wrong PF means audits, missed PT means notices. TMS owns the entire monthly cycle — from input to disbursal to statutory filing — and delivers an audit-ready trail. Same SPOC every month.

What you get with TMS

End-to-end monthly cycle

Variable inputs, attendance, leave, reimbursements, deductions, salary disbursal, payslips, statutory filings, Form 16.

Multi-state statutory

PF, ESIC, PT, LWF, gratuity, bonus — filed correctly per state. State-wise registrations included.

Direct bank disbursal

We can disburse salaries to employee bank accounts directly (with your approval / authorization protocol), or hand back a NEFT-ready file.

Audit-ready always

State-wise registers maintained electronically. Statutory inspections handled by our compliance team.

Employee self-service portal

Payslips, Form 16, tax declarations, reimbursement claims, leave balances — all online.

API & HRIS integration

Connects to Workday, BambooHR, Rippling, Deel, GreytHR, Keka, and ZingHR.

How it works

STEP 01

Kickoff & document collection

After contract sign-off, we collect employee master, statutory IDs, salary structures, and last 3 months of payslips.

STEP 02

Configuration & parallel run

We configure your CTC structure, FBP, tax slabs, and reimbursement logic. First 1-2 months run parallel to validate.

STEP 03

Attendance & inputs cycle

Your team approves attendance + variable inputs in the portal. Our payroll team computes salary, tax, statutory contributions, and shares the salary register for approval.

STEP 04

Disbursal + filings

After your approval, we disburse salaries, file PF / ESIC / PT / LWF / TDS challans, and publish payslips to the employee portal — every month, on the same dates.

What’s in the monthly payroll cycle

Inputs

  • Variable pay & overtime
  • Attendance reconciliation
  • Reimbursements & FBP
  • Loss-of-pay calculations

Processing

  • CTC structuring
  • TDS calculation
  • Deduction logic
  • Salary register

Disbursal

  • NEFT-ready file or direct bank payout
  • Payslips (PDF + portal)
  • Banking reconciliation

Statutory

  • PF challan + return
  • ESIC challan + return
  • PT (state-wise)
  • LWF (state-wise)
  • TDS challan + 24Q

Annual

  • Form 16 generation
  • Investment declaration management
  • Annual returns (PF, ESIC, PT, LWF)
  • Form 24Q quarterly

Payroll Outsourcing & Statutory Compliance — What TMS Manages

Statutory ComponentWhat TMS DoesFiling Frequency
Provident Fund (PF)ECR generation, challan filing, UAN registration, employer contributionsMonthly
ESICHalf-yearly return, monthly challan, new registration, IP card coordinationMonthly + Half-yearly
Professional Tax (PT)State-wise PT slabs applied, challan filed per state where applicableMonthly / Annually (varies by state)
Labour Welfare Fund (LWF)State-wise LWF deduction and remittance where applicableHalf-yearly / Annual (varies)
TDS (Tax Deducted at Source)Monthly TDS calculation, Section 192 compliance, Form 24Q filingMonthly
Form 16Annual Form 16 generation and distribution to all employeesAnnual (before June 15)
GratuityGratuity calculation per Payment of Gratuity Act on employee exitOn exit
BonusStatutory bonus calculation per Payment of Bonus ActAnnual
Labour Code 2025 UpdatesAll four Labour Codes effective Nov 2025 — contracts and filings updatedOngoing

Indian payroll statutory compliance spans 9+ mandatory filings across PF, ESIC, PT, LWF, and TDS — each with different deadlines, state-specific rules, and penalty structures. TMS owns all of them. Your finance team approves the salary register once. We do the rest.

Third Party Payroll vs Payroll Outsourcing — What's the Difference?

Third Party Payroll (3P Payroll)Payroll Outsourcing
What it meansEmployees are on a third party's payroll — typically as part of contract staffing or EOR. TMS is the employer.Your employees remain on your rolls. TMS processes payroll on your behalf as your payroll service provider.
Employment relationshipTMS or contractor is the employerYou are the employer — TMS processes payroll
Who TMS offers it forContract staffing clients, EOR clientsDirect clients — startups, SMEs, enterprises
When to chooseWhen you want to outsource the employer relationship entirelyWhen you want payroll processing done accurately without hiring a payroll team
TMS offers both✓ Contract Staffing → 3rd party payroll✓ Payroll Outsourcing → processing your payroll

Payroll Outsourcing Cost in India — What to Expect

Payroll outsourcing pricing in India typically follows a per-employee-per-month (PEPM) model. The cost depends on headcount, complexity of CTC structure, number of states, and whether statutory filings are included. As a guide:

HeadcountTypical Cost Range (PEPM)What's Included at TMS
1–50 employees₹200–₹500 per employee/monthFull payroll cycle + all statutory filings + payslips + Form 16
50–200 employees₹150–₹300 per employee/monthSame + HRIS integration + dedicated SPOC
200–500 employees₹100–₹200 per employee/monthSame + multi-state compliance + audit support
500+ employeesCustom pricingFull managed service including HR operations if required

TMS pricing is all-in — no hidden statutory filing charges. Contact us for a binding quote within 24 hours.

Multi-State & Multi-City Payroll — TMS Manages the Complexity

Indian payroll is not uniform. Professional Tax slabs vary by state. LWF applicability and frequency differ. Minimum wages vary by zone, category, and state government notification. Shops & Establishments Act requirements differ by city. ESI applicability depends on location.

  • TMS maintains active PT and LWF registrations in all 28 states where applicable
  • Minimum wage compliance is updated monthly per state notifications
  • Multi-entity clients get consolidated reporting with entity-level drill-down
  • Retail chains, logistics companies, and NBFCs with branches in 10+ cities are our most common multi-state payroll clients
  • → See our guide: How to Manage Multi-City Payroll in India

Frequently Asked Questions

How do we share inputs every month?

Excel template, API push, or HRIS integration — your call. Most clients send a finalized input file by the 25th, salary credited by the 1st.

Who is liable for statutory errors?

Our SLA includes statutory accuracy guarantee. Any penalty caused by TMS error is reimbursed by us. In 20 years, this clause has never triggered.

Can we migrate mid-financial-year?

Yes. We've migrated 100+ payrolls mid-year. We carry over YTD numbers, Form 16 will be combined.

Multi-state employees — how does compliance work?

TMS maintains state-wise registers and files state-wise. An employee transferring states triggers automatic re-registration.

Get a payroll proposal in 24 hours.

Share your current headcount and locations. Sales will respond with scope, pricing, and migration plan within one business day.

Talk to our sales team.

Share your current headcount and locations. Sales will respond with scope, pricing, and migration plan within one business day.

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By Abhijit Divekar · TMS Editorial Team · Reviewed by TMS Compliance Practice · Updated May 2026
Abhijit leads TMS, an HR outsourcing firm operating across India since 2006. The TMS Compliance Practice handles PF, ESIC, PT, LWF and labour-code filings for 200+ employers and 8,500+ employees on TMS payroll.

By Abhijit Divekar · TMS Editorial · Payroll

Indian HR & statutory compliance specialists since 2006 · 8,500+ employees on TMS payroll · All states & UTs covered

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