Payroll Compliance Services
We make sure every payroll run follows Indian wage and social security law, from minimum wages and PF to Professional Tax and bonus, so employees are paid right and you never face a penalty for a missed deduction.
Payroll that is correct, on time and defensible
Payroll errors rarely stay inside payroll. An incorrect PF wage base becomes a demand notice years later. A missed minimum wage revision becomes an inspection finding. A late ESI remittance carries interest and damages. Payroll compliance is about getting every statutory component right, every month, and being able to prove it.
Nhancesmart provides payroll compliance and payroll outsourcing for companies across India. Our team verifies each payroll run against the statutory rules that apply to your employees and states before salaries are disbursed. An AI payroll audit layer cross-checks the run against the previous cycle and the law, catching mismatches such as wrong wage ceilings, missed revisions or incorrect deductions before payday, not after.
You can hand us the full payroll process or keep your existing payroll software and use us as the compliance layer on top. Either way, statutory deductions, remittances and returns are handled by specialists who track every change in the law.
What's included
- Pre-disbursal statutory check of every payroll run
- PF and ESI contribution computation, remittance and monthly returns
- Professional Tax and Labour Welfare Fund deductions as per each state's rules
- Minimum wage tracking and revisions for each state and employment category
- Bonus, gratuity and leave encashment computation
- TDS on salary coordination and Form 16 support
- Wage registers and payslips in the formats the law prescribes
- Full and final settlement checks for exits
Laws and rules covered
- Code on Wages, 2019
- Consolidates the Payment of Wages, Minimum Wages, Payment of Bonus and Equal Remuneration Acts, and introduces a uniform definition of wages.
- Employees' Provident Funds Act, 1952
- 12% employer and employee contributions on basic wages and dearness allowance, due by the 15th of the following month.
- Employees' State Insurance Act, 1948
- Employer 3.25% and employee 0.75% contributions for employees earning up to ₹21,000 a month.
- Payment of Bonus Act, 1965
- Minimum 8.33% and maximum 20% bonus for eligible employees, paid within eight months of the year end.
- Payment of Gratuity Act, 1972
- 15 days' wages for every completed year of service, up to ₹20 lakh, after five years of continuous service.
- State Professional Tax and Labour Welfare Fund laws
- State-specific slabs, deduction months and due dates for every location you employ people in.
How our payroll compliance service works
- STEP 01
Review
We review your salary structures, payroll inputs and the last few months of statutory filings to find gaps and exposures.
- STEP 02
Align
Salary structures, wage bases and deduction rules are aligned with the law, including the 50% wage rule under the Labour Codes.
- STEP 03
Verify each run
Every payroll run is checked against statutory rules and the previous cycle before salaries are released.
- STEP 04
Remit and file
PF, ESI, PT and LWF are remitted and filed on time, with challans and returns shared with you each month.
The payroll compliance mistakes we fix most often
Most payroll compliance problems come from a small number of recurring mistakes. We look for these first in every new engagement.
- PF calculated on a wage base that excludes allowances which should be included
- Minimum wage revisions not applied when a state notifies new rates
- ESI coverage not started or stopped at the correct wage threshold
- Professional Tax deducted at the wrong slab after a salary change or relocation
- Bonus and gratuity provisions missing for eligible employees
- Late remittances that quietly accumulate interest and damages
Ready for the Labour Codes
The Code on Wages sets a uniform definition of wages and requires that basic pay, dearness allowance and retaining allowance make up at least half of total remuneration. Allowances above 50% are added back for PF, gratuity and other benefits. For many employers this changes PF contributions, gratuity liability and take-home pay. We model the financial impact of the new definition on your payroll before you restructure, so the change is planned rather than forced.
Trusted by 2000+ businesses across India
Fifteen years of labour law practice, AI-native compliance platforms and independently certified security.
Attendance and payroll software
Powered by Attendenz
Attendenz, our attendance and payroll software, connects attendance, leave and payroll so statutory deductions are calculated from accurate inputs, for permanent staff and contract labour alike.
Prefer to run it in-house? Explore Complysmart's Payroll Audit Management software on comply-smart.com.
Payroll Compliance: frequently asked questions
End-to-end payroll: salary calculation, PF, ESI, Professional Tax and TDS deductions, payslips, full and final settlement, statutory filings (ECR, ESI, PT, LWF and TDS returns), Form 16 and Form 24Q, and wage structures aligned with the Labour Codes.
Attendance from Attendenz flows straight into the payroll engine, and PF, ESI, PT and TDS rules for Karnataka and every other state are pre-configured. With no manual re-entry, our clients see 99.9% payroll accuracy.
PF, ESI, Professional Tax, Labour Welfare Fund, TDS, Shops and Establishments returns and the new Labour Codes, which have been in force since November 2025. We manage the filings under each of them for you.
Yes. We manage payroll compliance in every state you operate in, with state-wise Professional Tax, minimum wages and Shops and Establishments rules tracked in Complysmart.
Attendance and leave from Attendenz, salary calculation, statutory deductions, payslip generation, the bank transfer file, statutory filings and reports, all automated end to end.
Yes. Online payslips, an investment declaration portal, a tax calculator, Form 16 Part A and B, Form 12BB and employee self-service through Attendenz.
Complysmart tracks Karnataka Professional Tax and income tax changes, and our compliance managers monitor EPFO, ESIC and PT department updates, so every change reaches your payroll on time.
Yes. We calculate full and final settlements, including gratuity under the Payment of Gratuity Act, leave encashment and clearance, with the workflow automated in Attendenz.
Outsourcing gives you accurate payroll, timely statutory filings, Labour Codes readiness and a dedicated compliance team, so you don't have to track 29+ laws yourself and can focus on your business.
We bring payroll, compliance and our own AI platforms together with more than 15 years of advisory experience, under one roof, rather than payroll software alone.
Explore related compliance services
Labour Law Compliance Services in India
As a pan-India compliance consulting firm, we manage multi-state labour law compliances for employers in every industry, from registrations and statutory registers to monthly remittances and inspections, so you run audit-ready all year. Many businesses across India rely on Nhancesmart to keep their workforce compliance clean.
Learn more →New Labour Codes Compliance 2026
We help employers move to India's four new Labour Codes with a structured readiness assessment, financial impact modelling and hands-on implementation, so the transition is planned, costed and compliant across every state you operate in.
Learn more →Statutory Compliance Audit
Our statutory compliance audit checks every labour law obligation your business carries, from registrations and registers to remittances and returns, and gives you a risk-rated report with a clear plan to fix each gap before an inspector finds it.
Learn more →Read practical guidance on these topics on the Nhancesmart blog, or see all our services.
Book a free compliance check
Tell us about your business and our team will map your payroll compliance obligations and the gaps to close first.