.png)
Indian payroll runs on EPF, TDS, ESIC, and state-level Professional Tax — with different rules in each state where employees work. Rippling automates the full multi-state compliance stack so your Indian Pvt Ltd stays current.
Indian payroll operates through a multi-agency compliance framework: EPF remittances to EPFO by the 15th, ESIC to ESIC by the 15th, TDS to the Income Tax Department by the 7th, and Professional Tax to state authorities on state-specific schedules. India's payroll year runs April 1–March 31. CTC structuring — breaking salary into Basic, HRA, LTA, and Special Allowance — affects EPF contributions, gratuity accrual, and the employee's tax liability.
Rippling's India payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| EPF (Employer) | 12% | Of Basic + DA. 8.33% to EPS, 3.67% to EPF. |
| EPF Admin + EDLI | 1% | Admin 0.5% + EDLI 0.5%. |
| ESI (Employer) | 3.25% | For employees earning ≤₹21,000/month. |
| Gratuity Provision | 4.81% | Accrual liability. Fund via LIC gratuity policy. |
.svg)
| Contribution | Rate | Notes |
|---|---|---|
| EPF (Employee) | 12% | On Basic + DA. |
| ESI (Employee) | 0.75% | For employees ≤₹21,000/month. |
| Professional Tax | ₹200/month (max) | State-specific. |
| Income Tax (TDS) | 0%–30% | Based on employee's declared tax regime. |
| Annual Income (New Regime, FY2024-25) | Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001–₹6,00,000 | 5% |
| ₹6,00,001–₹12,00,000 | 10%–15% |
| ₹12,00,001–₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
New regime is the default since FY2023-24. Old regime allows deductions but higher rates. 4% health and education cess on total tax.
Full and final settlement (F&F) must include: earned leave encashment, notice period pay, gratuity (if 5+ years service), and pending salary. Must be paid within timeframes set by applicable state Shops and Establishments Act. Rippling calculates F&F components automatically on offboarding.
Statutory: EPF (12% employer), ESI (3.25% for eligible employees), Gratuity (4.81% accrual).
Market standard: Group medical insurance, term life, HRA, LTA, meal vouchers, professional development. Tech: ESOP, flexible work, laptop, internet allowance.
EPF is India's mandatory retirement savings scheme. Both employer and employee contribute 12% of Basic + DA. The employer's 12% is split: 8.33% to EPS (pension) and 3.67% to EPF account. Monthly EPF remittances are due by the 15th. Rippling generates the ECR (Electronic Challan cum Return) automatically for EPFO portal submission.
TDS (Tax Deducted at Source) is mandatory for salary payments above the basic exemption. The employer calculates each employee's estimated annual tax, divides by 12, and deducts monthly. TDS is remitted to the Income Tax Department by the 7th of the following month. Quarterly TDS returns (Form 24Q) are filed. Rippling calculates TDS per employee and generates Form 16 annually.
India's payroll year runs April 1–March 31. Key year-end obligations: Form 16 issued to all employees by June 15; Form 24Q (Q4) filed by May 31; EPF annual returns; ESIC annual return; state Professional Tax annual returns. Rippling automates all of these.
Yes. Rippling's India payroll module handles EPF ECR filings, ESIC challan, TDS and Form 24Q returns, Professional Tax by state, CTC structuring, and Form 16 issuance. thePeopleStack configures the full India payroll setup. Contact us to scope your configuration.
