Payroll Outsourcing & Statutory Compliance — What TMS Manages
| Statutory Component | What TMS Does | Filing Frequency |
|---|---|---|
| Provident Fund (PF) | ECR generation, challan filing, UAN registration, employer contributions | Monthly |
| ESIC | Half-yearly return, monthly challan, new registration, IP card coordination | Monthly + Half-yearly |
| Professional Tax (PT) | State-wise PT slabs applied, challan filed per state where applicable | Monthly / Annually (varies by state) |
| Labour Welfare Fund (LWF) | State-wise LWF deduction and remittance where applicable | Half-yearly / Annual (varies) |
| TDS (Tax Deducted at Source) | Monthly TDS calculation, Section 192 compliance, Form 24Q filing | Monthly |
| Form 16 | Annual Form 16 generation and distribution to all employees | Annual (before June 15) |
| Gratuity | Gratuity calculation per Payment of Gratuity Act on employee exit | On exit |
| Bonus | Statutory bonus calculation per Payment of Bonus Act | Annual |
| Labour Code 2025 Updates | All four Labour Codes effective Nov 2025 — contracts and filings updated | Ongoing |
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 means | Employees 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 relationship | TMS or contractor is the employer | You are the employer — TMS processes payroll |
| Who TMS offers it for | Contract staffing clients, EOR clients | Direct clients — startups, SMEs, enterprises |
| When to choose | When you want to outsource the employer relationship entirely | When 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:
| Headcount | Typical Cost Range (PEPM) | What's Included at TMS |
|---|---|---|
| 1–50 employees | ₹200–₹500 per employee/month | Full payroll cycle + all statutory filings + payslips + Form 16 |
| 50–200 employees | ₹150–₹300 per employee/month | Same + HRIS integration + dedicated SPOC |
| 200–500 employees | ₹100–₹200 per employee/month | Same + multi-state compliance + audit support |
| 500+ employees | Custom pricing | Full 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
