Commercial Regulation
India Payroll
Indian payroll regulation covering TDS income tax (dual regime — New 7-slab / Old 3-slab with Sec. 80C/80D deductions), surcharge with marginal relief (4 tiers), Sec. 87A rebate, EPF/EPS/EDLI (EPFO rounding), ESI (sticky boundary state machine), Professional Tax (18+ states), Labour Welfare Fund (13 states), Statutory Bonus, Perquisites (Rule 15 — motor car, RFA, ESOP), Termination (Gratuity, Leave Encashment, Notice Pay), and Maternity Benefit (MB Act 2017). April–March fiscal year.
New
Finance Act 2026
EPF/EPS/EDLI
ESI
PT 18+ States
v1.0.0-beta
Regulation Overview
IN.Payroll · FY 2026–27
Core regulation + 11 versioned data regulations (TDS · EPF · ESI · PT · LWF · Bonus · Gratuity · MinWage · Perquisites · Maternity)
71
Wage Types
5
Reports
7
Cases
94
Integration Tests
TDS New Regime — FY 2026–27 (Finance Act 2026)
≤ ₹4,00,0000%
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
> ₹24,00,00030%
Standard Deduction₹75,000
Sec. 87A Rebate limit₹12,00,000 income (cliff)
Social Insurance — FY 2026–27
EPF Employee / Employer12% / 12%
EPS (from employer 12%)8.33% on min(Basic+DA, ₹15K)
EDLI0.5%
EPF Admin charge0.5% (min ₹75)
ESI Employee / Employer0.75% / 3.25%
ESI wage ceiling₹21,000/mo
Surcharge tiers10% / 15% / 25% / 37%
Health & Education Cess4%
Cases & Reporting
Cases & Statutory Reporting
8 payroll input cases + 5 reports
Reports (5)
Payslip — Monthly employee pay statementPDFMonthly
Form 16 — Annual TDS certificate (Part B)DataSetAnnual · Employee
Form 24Q — Quarterly TDS returnDataSetQuarterly · IT Dept
ECR — EPF Electronic Challan-cum-ReturnDataSetMonthly · EPFO
ESI Return — Contribution return for ESICDataSetHalf-yearly · ESIC
Certification Requirements
Required Registrations & Filing
Customer responsibility — Payroll Engine provides calculation results, not filing
Employer Registrations
EPFO — Universal Account Number (UAN)Required for EPF/EPS/EDLI contributions
ESIC — Employer CodeRequired if applicable (₹21K wage ceiling)
TAN (Tax Deduction Account Number)Required for TDS withholding & Form 24Q
Professional Tax RegistrationState-specific (varies by establishment location)
Filing & Reporting Obligations
Form 24Q (Quarterly TDS Return)Income Tax Department via TRACES
Form 16 (Annual TDS Certificate)To employees by June 15 each year
ECR (Monthly EPF Challan)EPFO portal — by 15th of following month
ESI Return (Half-yearly)ESIC portal — Apr–Sep and Oct–Mar
PT Return (Monthly/Annual)State-specific portals
Payroll Engine produces Form 16, Form 24Q, ECR, and ESI Return datasets. Actual submission to TRACES, EPFO, ESIC, and state PT portals is the sole responsibility of the deploying entity.
Regulation Stack
Deployment Layers
Standalone India or multi-country via Consolidation cluster
L1IN.PayrollCore payroll regulation
L1Data.TDS.New.2026New Regime 7-slab · SD ₹75K · 87A
L1Data.TDS.Old.2026Old Regime 3-slab · 80C/80D · HRA
L1Data.EPF.2026EPF/EPS/EDLI rates · ₹15K EPS ceiling
L1Data.ESI.2026ESI rates · ₹21K wage ceiling
L1Data.PT.202618+ state Professional Tax slabs
L1Data.LWF.202613 state Labour Welfare Fund
L1+5 Data SatellitesBonus · Gratuity · MinWage · Perquisites · Maternity
L2Provider.MyCompanyCompany PT state · EPF establishment · custom allowances
L3Regulation.ConsolidationWT 7000–7062 · cross-country reports