Third-party payroll services in India, run by TMS.
Put your workers on our books and keep them working under your direction. TMS becomes the legal employer for PF, ESI, TDS, and every statutory filing, while you keep full control of the work. It is 3rd party payroll done the compliance-first way, across 100+ cities and every state and UT.
Talk to Sales WhatsApp Our Team
What are third-party payroll services?
Third-party payroll is an arrangement where your employees or contract workers are formally employed by a staffing company, the third party, while they continue to work at your premises and under your direction. The staffing partner issues the appointment letter, runs the monthly payroll, deducts and deposits PF, ESI, professional tax, and TDS, and files every statutory return. You direct the day-to-day work. The partner carries the legal employer obligations.
Companies choose 3rd party payroll to keep headcount flexible, convert a fixed employment cost into a variable per-head cost, and move statutory compliance risk to a specialist. It sits close to payroll outsourcing India teams already use, with one key difference: here the workers are on the provider’s books, not just processed through the provider’s software.
In short: your people, your direction, our books. TMS handles employment paperwork, salary payouts, and statutory compliance so your team can focus on the actual work.
Everything included in TMS third-party payroll
One monthly per-employee fee covers salary processing, statutory work, and employee support. Here is what your team gets.
Monthly payroll processing
Salary calculation, appointment letters, payslips through a dedicated HRMS portal, and bank salary payouts each cycle.
TDS, Form 130 (formerly Form 16) and F and F
TDS computation and deposit, annual Form 130 issuance, and clean full and final settlements when a worker exits.
PF, ESI, PT and LWF
Provident Fund at 12% with ECR filing and UAN or KYC upkeep, ESI at eligible thresholds, plus state professional tax and Labour Welfare Fund.
Statutory filings and registers
All returns, registers, and audit filings, statutory bonus where applicable, gratuity provisioning, and CLRA and principal-employer compliance.
Reimbursements and FBP
Structured flexible benefit and reimbursement handling built into each employee’s pay structure and tax computation.
Employee helpdesk
A dedicated account manager plus real-time visibility into attendance and leave, so workers and your HR team have a clear point of contact for answers.
Third-party payroll vs in-house vs EOR
Each model fits a different need. Here is how third-party payroll compares with running payroll in-house and with a full Employer of Record.
| Factor | Third-party payroll (TMS) | In-house payroll | EOR |
|---|---|---|---|
| Legal employer | TMS, the staffing partner | Your company | The EOR entity |
| Who directs work | You, at your premises | You | You |
| Statutory compliance | Handled by TMS | Your team owns it | Handled by the EOR |
| Headcount on your books | Stays flexible, off your rolls | Adds to your rolls | Off your rolls |
| Best when | You need Indian workers managed and compliant without expanding headcount | You have the internal payroll and compliance capacity | You are hiring in India without a local entity |
| Cost model | Per employee per month: CTC plus statutory loading plus service fee | Salaries plus payroll staff and software | Per employee, usually higher for entity coverage |
Not sure whether third-party payroll or an Employer of Record fits your situation better? Tell us your headcount and goal and we will point you to the right model, even if it is not this one.
Who uses third-party payroll services?
- Companies with headcount caps. Keep skilled workers deployed without adding to your permanent employee count.
- Teams converting fixed cost to variable. Turn salaries and compliance overhead into a single predictable per-head fee.
- Businesses offloading compliance risk. Move PF, ESI, TDS, and labour-law filings to a partner that has run them since 2006.
- Project and seasonal workforces. Scale a team up for a project or peak season and wind it down cleanly afterward.
- Foreign firms testing India. Put boots on the ground and manage staff compliantly before committing to a full entity.
- Growing SMEs and large corporates. From a handful of workers to thousands across 100+ cities, on one contract.
How TMS third-party payroll works
Two clear routes, depending on whether you are moving existing staff or deploying new hires.
Scope and quote
Share headcount, roles, and locations. We map the CTC, statutory loading, and service fee into a clear per-employee price.
Choose your route
Transfer existing employees with service continuity and UAN history preserved, or deploy new hires directly on TMS payroll.
Onboard and set up
Appointment letters, HRMS portal access, PF and ESI registration, and matching take-home for transferred staff.
Run and comply
Monthly payroll, payslips, statutory deposits, and filings, with a dedicated account manager for you and your workers.
Transferring an existing team typically runs 30 to 60 days with UAN continuity and matched pay. Deploying new hires on TMS payroll typically takes 7 to 15 days.
Why companies pick TMS for third-party payroll
Compliance-first, not an afterthought
Statutory compliance is the core of what we do. PF, ESI, PT, LWF, TDS, bonus, and gratuity are handled by specialists who track every rule change.
Real pan-India reach
8,500+ employees on TMS payroll across 100+ cities and every state and UT, with local knowledge of state-specific rates and filings.
One partner, one point of contact
A dedicated account manager owns your account. Your workers get a helpdesk. You get a single monthly invoice instead of a compliance headache.
Nearly two decades of Indian payroll
Team Management Services has managed staffing and payroll in India since 2006. With 450+ clients and 8,500+ employees on our books, we bring the process discipline and statutory depth that third-party payroll demands, at a scale that holds up across industries and locations.
Ready to move your team to third-party payroll?
Tell us your headcount and locations. We will send a per-employee quote and a route that fits.
Explore related TMS services
Payroll Outsourcing
Keep staff on your books and hand the payroll processing and compliance to us.
Manpower Outsourcing
Source, deploy, and manage a flexible workforce across your sites.
Third-party payroll services: common questions
Reviewed by the TMS payroll and compliance team. Last updated: September 2026.
What are third-party payroll services?
Third-party payroll is an arrangement where a staffing company becomes the legal employer of your workers and runs their payroll and statutory compliance, while those workers continue doing their jobs at your premises under your direction. TMS holds the employment relationship for PF, ESI, TDS and statutory filings. You retain control of the work itself.
Who is the legal employer under third-party payroll?
The staffing partner is the legal employer. Workers sit on TMS payroll, so TMS issues appointment letters, deposits statutory dues and files returns. You continue to direct day-to-day work. Under the Contract Labour (Regulation and Abolition) Act, you remain the principal employer with oversight obligations that do not transfer.
How is third-party payroll priced?
Pricing is per employee per month. Each worker’s cost is the full CTC, plus statutory loading for PF at 12% of basic, ESI at 3.25% employer share where gross is under ₹21,000, and other applicable dues, plus a service fee. You receive one per-head figure and a single monthly invoice.
Can I move my existing employees onto TMS payroll?
Yes. We transfer existing staff with service continuity and UAN history preserved, and we match take-home pay. A transfer usually takes 30 to 60 days. New hires can be deployed directly on TMS payroll in about 7 to 15 days.
Which statutory compliances does TMS handle?
Provident Fund with ECR filing and UAN and KYC upkeep, ESI where employees are eligible, Professional Tax and Labour Welfare Fund by state, TDS with quarterly returns on Form 138 and annual Form 130 issue, statutory bonus and gratuity provisioning, full and final settlements, and the registers, returns and audit filings required under the CLRA including principal-employer compliance.
How is this different from EOR?
Third-party payroll manages workers you already run in India, without adding them to your headcount. An Employer of Record is built for hiring in India when you have no local entity at all. The deciding factor is whether you already have a registered Indian entity: if you do, third-party payroll applies; if you do not, EOR does.
Where does TMS provide third-party payroll?
Across India. TMS manages 8,500+ employees across 100+ cities and every state and union territory, handling state-specific Professional Tax rates, Labour Welfare Fund cycles and filing calendars locally.
Do my workers get support and payslips?
Yes. Each worker gets monthly payslips through a dedicated HRMS portal, real-time attendance and leave visibility, and access to a helpdesk backed by a dedicated account manager.
Get a third-party payroll quote
Share your headcount, roles, and locations. We will come back with a per-employee price and the right transfer or deployment route. Call +91 22 4896 7640, WhatsApp +91 91360 24090, or email sales@tmservices.co.in.