Compliance Guide

Payroll, HR & Labour-Law Compliance in India

Hiring in India brings a web of payroll, provident-fund and labour-law obligations. We run the whole stack so your India team is paid correctly and your entity stays compliant.

Run Your India Payroll Post-Entry Support →

In short: A foreign company employing staff in India must run monthly payroll with TDS on salaries, deposit Provident Fund (EPF) and ESI where thresholds apply, issue compliant employment contracts, register under the applicable state Shops & Establishment and professional-tax laws, comply with POSH (prevention of sexual harassment), and prepare for the four new labour codes. We handle payroll, statutory deposits and returns end-to-end.

What India payroll & HR compliance covers

Monthly payroll & payslips
TDS on salary (Section 192)
Provident Fund (EPF)
ESI (where applicable)
Professional tax (state-wise)
Gratuity & bonus
Shops & Establishment registration
POSH — Internal Committee & policy
Readiness for the four labour codes

Statutory registrations you’ll need

EPFO (Provident Fund) registration
ESIC registration
Professional tax registration (state-specific)
Shops & Establishment registration

Professional tax and Shops & Establishment obligations vary by state — see best locations for foreign companies for the state-by-state view.

Your payroll compliance calendar

Frequency	Key items
Monthly	Payroll run, salary TDS deposit, PF & ESI deposits, professional tax
Quarterly	TDS return (Form 24Q)
Annual	Form 16 to employees, PF/ESI annual returns, bonus

Employment contracts & policies

Compliant offer letters and employment agreements — covering role, pay, IP and confidentiality, leave, notice and HR policies aligned to Indian law — are the foundation. We standardise them for your India team so onboarding is clean.

POSH compliance

Companies with 10 or more employees must constitute an Internal Committee under the POSH Act, adopt an anti-harassment policy, run periodic awareness sessions and file an annual report. We help set up the framework.

The new labour codes

India is consolidating 29 laws into four labour codes — the Code on Wages, Social Security Code, Industrial Relations Code and Occupational Safety, Health & Working Conditions Code. We keep your policies and payroll ready for the transition.

Payroll and HR sit inside a broader compliance stack — see India post-entry support and India governance, risk & compliance.

Frequently asked questions

Is Provident Fund mandatory for a foreign company's India employees?

EPF applies once an establishment has 20 or more employees (voluntary coverage is possible earlier), with employer and employee contributions on wages up to the statutory ceiling. We register and run the monthly deposits and returns.

What is ESI and when does it apply?

ESI is India's employee state insurance (medical and cash benefits), applicable to employees earning up to the notified wage threshold in covered establishments, with employer and employee contributions.

Do we need written employment contracts in India?

Yes — compliant offer letters and employment agreements (covering role, pay, IP, confidentiality, notice and policies) are strongly advisable and often required, and reduce disputes.

What is POSH compliance?

The POSH Act requires employers with 10 or more employees to form an Internal Committee, adopt an anti-harassment policy, run awareness and file an annual report. We help you set it up.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last updated: July 2026.

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We handle salaries, PF, ESI, TDS and the labour-code readiness so your team is paid right.

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