Payroll for Indian Businesses: PF, ESIC, TDS and Salary Slips — All Automated

Running payroll in India means dealing with PF (12% employer + 12% employee on basic), ESIC (if salary under ₹21,000), professional tax (state-specific), and TDS under Section 192. Miss any of these and you're looking at penalties, disallowances, and unhappy employees.

What Indian Payroll Actually Requires

• PF deduction — 12% of basic from employee, 12% from employer (including 8.33% EPS). ECR filing by the 15th of every month.
• ESIC — 0.75% employee + 3.25% employer on gross salary for employees earning under ₹21,000/month. Monthly challan and half-yearly returns.
• TDS under Section 192 — deducted monthly based on estimated annual income. Form 16 issued by June 15 each year.
• Professional Tax — state-specific slabs. Maharashtra: ₹200/month for salary above ₹10,000. Karnataka: ₹200/month above ₹15,000.

How Klaro Books Handles It

Klaro Books computes all of this automatically. Add employees, set their salary structure (Basic, HRA, Special Allowance), and the system calculates PF, ESIC, professional tax, and TDS every month. Salary slips are generated as PDFs. ECR files for PF are ready to upload directly to the EPFO portal.

There is no separate payroll module to buy — payroll is included in the Pro plan at ₹3,499/month for up to 5 companies. Start your 30-day free trial →