Payroll Outsourcing Services in India. Every Month, Every State, Filed Right.
TMS is the payroll outsourcing partner Indian and global employers hand month-end to. You send inputs by the 25th. Salaries land by the 1st. PF, ESIC, PT, LWF and TDS challans file the same cycle. One senior HR SPOC owns your account. One monthly invoice covers the whole run.
Get a Payroll Proposal WhatsApp Sales
What Payroll Outsourcing Is, and What It Removes From Your Plate.
Payroll outsourcing means handing your monthly salary run and statutory filings to a third party payroll services provider that has the software, the state registrations and the compliance staff in-house. TMS becomes that specialist for your India team. We compute pay, deduct and remit PF, ESIC, Professional Tax and TDS, issue payslips and Form 16, and keep audit-ready registers month after month.
The staff still work for you. Their offer letter, appraisal and reporting line stay in your name. What moves off your plate is the pipeline: attendance validation, CTC to net-pay math, challan cutoffs across every state you employ in, mid-year law changes, year-end returns. If you also need to move an existing team onto TMS payroll as the legal employer, that is a separate one-time payroll transfer service.
One Managed Service. Six Areas Off Your Plate.
Monthly payroll processing
Salary computation, tax deduction, arrears and reimbursements. NEFT disbursal. Payslips published in the employee portal on payday.
End to end statutory filings
PF, ESIC, Professional Tax, LWF and TDS challans filed every cycle across every applicable state, plus quarterly Form 24Q returns.
Multi-state PT and LWF coverage
Registrations and rate updates maintained across every Indian state. Adding a Bangalore, Delhi or Chennai hire will not trip your compliance calendar.
Employee self-service portal
Payslips, income tax declarations, reimbursement claims and Form 16 download, all self-served. Queries stay off your HR desk.
Year-end and audit support
Form 16 to every employee, Form 24Q to the department, and audit-ready registers for statutory and internal reviews.
Accuracy guarantee
If a statutory penalty is caused by a TMS error, we reimburse it. Zero penalties in 20 years is the outcome of that discipline.
Payroll Outsourcing for Every Major Indian Sector.
TMS payroll runs for employers in every regulated Indian sector. The compliance overlay is different in each, and we handle it: shift and OT rules for manufacturing, ESIC thresholds for BFSI back office, statutory bonus and gratuity accruals for pharma, retail wage codes, and IT-specific joining and exit bonuses.
IT and Technology
Product, engineering, GCC
BFSI
Banking, NBFC, Insurance
Manufacturing
Shift, OT, plant payroll
Pharma and Healthcare
Hospitals, R&D, field force
Retail and FMCG
Multi-location, wage code
And more
EdTech, logistics, real estate, media, hospitality, energy, ecommerce and any regulated Indian sector on request
Five Signals You Are Ready to Outsource Payroll in India.
Finance and HR leads who have outgrown spreadsheet payroll
You still run payroll in Excel or a starter tool, and every month feels manual. Move to a payroll service provider that gives you audit-ready output.
Multi-state employers juggling different PT slabs
Karnataka, Maharashtra, Tamil Nadu and Telangana each have their own Professional Tax and LWF logic. One provider maintaining all states removes the state-by-state calendar burden.
Global firms standardising India payroll
Your headquarters wants one India payroll process. TMS integrates with Deel, Rippling, Workday, BambooHR, Keka, GreytHR and ZingHR so the global HRIS stays your single source of truth.
Companies opening new state locations
New office in Pune, Hyderabad or Noida. New Shops and Establishments Act, new PT slab, new LWF. TMS adds it to the next filing cycle instead of you setting up from scratch.
Growing employers approaching a statutory threshold
Crossing 10 or 20 employees triggers new PF, ESIC and Payment of Gratuity applicability. An outsourced payroll partner keeps the transition clean.
Outsourced Payroll vs In-House vs PEO in India.
| Factor | Outsourced payroll (TMS) | In-house payroll | PEO / Professional Employer Organization |
|---|---|---|---|
| Who runs the cycle | TMS payroll team | Your HR and finance | Shared, PEO plus your team |
| Statutory filings | Filed by TMS across every state | Filed by you, state by state | Filed by the PEO |
| Fixed monthly cost | Per-employee tiered fee | 1 to 3 FTE salaries plus software | Usually percent of payroll, higher |
| New state expansion | Included in the fee | Fresh PT and LWF setup per state | Included, at PEO cost |
| Compliance liability | Sits with TMS | Sits with you | Shared |
| Best for | Employers wanting month-end back | Single-state teams under 10 employees | Employers wanting full HR lifted |
A useful rule of thumb: outsourcing payroll pays back once you cross 10 employees or two states. In-house makes sense only for a very small single-state team. A PEO usually costs more than outsourced payroll for the same statutory scope, so choose PEO only when you want HR fully lifted, not just payroll.
Payroll Outsourcing Companies in India Only Cover Some Cities. TMS Covers All of Them.
TMS is a payroll outsourcing company that runs compliantly in every Indian state. The heaviest volumes come from Mumbai and Delhi NCR for finance, sales and marketing headcount. Bangalore is the biggest corridor for engineering and product payroll. Hyderabad and Pune drive Global Capability Centres and tech hiring. Chennai is strong for SaaS and support. Ahmedabad, Kolkata and Coimbatore handle back office, plant and manufacturing payroll. Every city sits under its own Professional Tax slab, Labour Welfare Fund rate and Shops and Establishments Act, and we file locally on your behalf.
From Kickoff to Steady Monthly Run. Five Steps.
Kickoff
Employee master, statutory IDs, salary structures collected.
Configure
CTC, flexible benefits and tax logic set up in the payroll engine.
Parallel run
First one or two months validated against your existing process.
Monthly inputs
Attendance and variables approved in the portal by the 25th.
Process and file
TMS computes, disburses via NEFT, publishes payslips, files challans.
India Payroll After the Labour Codes. Where Compensation Has to Shift.
India’s four Labour Codes came into force on 21 November 2025, consolidating 29 earlier central labour laws into four unified codes covering wages, social security, industrial relations and occupational safety. The biggest change for a payroll manager: the statutory definition of wages now requires basic pay to be at least 50 percent of total remuneration. Structures that ran on a low basic plus a wide allowance layer now push higher PF, gratuity and encashment liabilities. State level rules are still being notified at different speeds, so what applies to Karnataka on the 1st may not apply to Tamil Nadu the same day.
TMS reworked every active client’s salary structure when the codes moved in. State notifications are tracked continuously and rolled into the next filing cycle, so employers do not have to chase gazette updates. Zero statutory penalties in 20 years is the outcome of running compliance as a core practice, not a monthly checklist.
Adjacent HR and Compliance Services That Pair With Payroll.
Statutory Compliance
PF, ESIC, PT, LWF, gratuity and Labour Code filings as a standalone service.
HR Consulting
Salary benchmarking, policy design, PoSH, and organisation-development advisory.
Payroll Outsourcing vs In-House Cost Calculator
3-year total cost of ownership for a company your size. Compare running payroll in-house against outsourcing it. Includes software, FTE, penalty risk and audit overhead.
When It Makes Sense to Outsource Payroll, and When to Wait.
- Outsource once you cross 10 employees or two states. The compliance load compounds with each new state PT and LWF registration.
- Outsource if you want month-end back. Founders and HR leads typically reclaim 3 to 5 workdays per month after switching to a payroll processing outsourcing partner.
- Outsource when you are standardising payroll across group companies. One provider gives finance a single audit surface across every subsidiary.
- Stay in-house if you have 5 employees in one state. A cloud payroll tool plus a couple of hours a month may still be cheaper than an outsourced fee at that scale.
- Choose PEO instead only when you want full HR lifted. If you also want benefits admin, hiring, exits and grievance handling under one contract, that is PEO scope, not payroll outsourcing.
Frequently Asked Questions About Payroll Outsourcing in India.
What is payroll outsourcing and how does it work?
Payroll outsourcing hands your monthly salary processing and statutory filings to a third party payroll services provider. TMS receives attendance and variable inputs by the 25th of each month, computes pay and tax, disburses salaries via NEFT by the 1st, publishes payslips in an employee portal, and files PF, ESIC, PT, LWF and TDS challans by their statutory due dates.
How much does payroll outsourcing cost in India?
Indian payroll outsourcing fees are typically tiered by headcount. TMS ranges from around Rs 100 to Rs 500 per employee per month depending on team size. Employer statutory contributions pass through at actuals on top. Send your headcount and states for a specific proposal.
Who are the top payroll outsourcing companies in India?
Established Indian firms with in-house statutory teams include TMS, TalentPro, ADP India, Adecco, Excelity, Ramco, Hinote and PaySquare. Global platforms include Deel, Rippling, Multiplier and Wisemonk. For India-only payroll, an India-native provider usually gives faster response, senior ownership and lower total cost than a global platform.
How do we send monthly payroll inputs?
Excel upload, direct API integration, or through your HRIS. TMS is live with GreytHR, Keka, ZingHR, Workday, BambooHR, Rippling, Deel and SAP SuccessFactors. Inputs are approved in the portal by the 25th of each month.
What if a statutory error causes a penalty?
If a statutory penalty is caused by a TMS error, we reimburse it. That accuracy guarantee is why our 20-year statutory penalty record is zero.
Can we outsource payroll mid financial year?
Yes. Mid-year migration is fully supported. TMS runs your first one or two months in parallel with your existing process, reconciles every calculation, and goes live on the next cycle. No need to wait for April.
Do you handle employees across several states?
Yes. TMS maintains multi-state Professional Tax and Labour Welfare Fund registrations across every Indian state. When you open a new office in Bangalore, Mumbai, Delhi NCR, Pune, Hyderabad or Chennai, the state PT and LWF are added to the next filing cycle.
How is payroll outsourcing different from payroll transfer?
Payroll outsourcing runs the monthly salary and statutory cycle for your own employees, on your books. Payroll transfer, sometimes called Employer of Record, moves employees onto the TMS entity so TMS becomes the legal employer. Choose outsourcing if you already employ the staff. Choose payroll transfer if you do not want to open an Indian entity.
Who TMS Is.
Team Management Services (TMS). Indian payroll and HR outsourcing firm since 2006.
TMS is an Indian HR outsourcing and statutory compliance firm operating since 2006. Today 8,500 employees sit on TMS payroll across all 28 Indian states and 100+ cities. The TMS Compliance Practice handles PF, ESIC, PT, LWF and Labour Code filings for 200+ employer clients. Zero statutory penalties on record in 20 years. Core services are payroll outsourcing, statutory compliance, Employer of Record, third party contract staffing, IT staffing and HR consulting. Head office in Mumbai. Website: tmservices.co.in.