Running payroll in India looks straightforward until you are three months in and staring at a PF notice, a TDS mismatch, or an angry employee asking why their payslip does not match what was deposited. XMS has been managing payroll for Indian companies and international teams since 2015. We handle the complexity so you do not have to.
India has one of the most complex payroll compliance environments in the world. PF rates change. ESI applicability thresholds shift. Professional Tax slabs differ by state. TDS calculations depend on investment declarations that employees submit incorrectly or not at all. LWF rates vary. Bonus calculations have legal definitions that most companies ignore until an audit arrives.
Most growing companies try to manage this in-house with a single HR executive who is also handling recruitment, onboarding, and exit formalities. The result is late filings, incorrect calculations, and compliance gaps that only become visible when a government notice arrives. By then, the penalties and interest have already accumulated.
The companies that avoid these problems do not have better HR executives. They have better systems. Outsourcing payroll to a specialist is not a sign that your team cannot cope. It is a recognition that payroll compliance in India requires dedicated expertise and that your HR team's time is worth more than chasing challans.
PF compliance errors compound. A miscalculated basic salary, an incorrect employee category, or a late payment challan can trigger notices that take months to resolve. We prevent these at the source.
TDS errors usually trace back to incorrect investment declarations, salary structure misclassification, or mid-year salary revisions that were not accounted for. We manage the full TDS cycle proactively, not reactively.
Payroll in India involves salary computation, statutory deductions, bank upload files, challan payments, return filings, payslip generation, and query resolution. For a team of 50, this can consume an entire person's month. We handle all of it.
US and UK companies employing Indian teams often have no visibility into whether PF, ESI, PT, TDS, and LWF are being filed correctly. We give you a clean compliance record and a clear monthly summary in a format that makes sense to your finance team.
We take over the full payroll function. You share attendance data and variable inputs. We handle everything else from computation to compliance.
Salary computation for all employees including variable pay, incentives, arrears, and deductions. Accurate to the last rupee, processed before your payment date every month.
Provident Fund and ESI calculations, challan generation, monthly filings, and ECR uploads. New joinee registration, exit closures, and UAN management handled as standard.
Monthly TDS calculations based on employee investment declarations, salary structure, and applicable exemptions. Form 24Q filings each quarter and Form 16 generation at year end.
PT applicability check, monthly deductions, and state-wise filings. PT slabs and filing cycles vary by state and we manage the complexity across all your locations.
LWF deductions and remittance where applicable. Contribution rates and cycles differ by state and we track them so you never miss a filing or pay incorrect amounts.
Payslip generation for every employee each month. Bank upload files prepared in your bank's required format so salary disbursement is a single approval, not a manual process.
Exit employee computation covering notice period recovery, gratuity eligibility, leave encashment, and all deductions. Done accurately and on time so departing employees do not need to follow up.
We maintain a compliance calendar for your organisation and file on time without reminders from your side. You receive a monthly compliance summary confirming every filing completed.
For companies using our Employer of Record service, payroll is handled as part of the same engagement. One partner, one invoice, complete compliance across recruitment, employment, and payroll.
We have been managing payroll compliance in India since 2015. We have seen regulation changes, interpretation disputes, and compliance gaps that newer providers have not encountered. That experience protects you.
Late PF, ESI, or TDS filings attract interest and penalties. We have a zero late filing record across our client portfolio. Every challan is paid, every return is filed, and you receive confirmation each month.
You receive a clean monthly payroll summary, individual payslips, compliance filing confirmations, and a full audit trail. No black boxes. You always know exactly what was processed and what was filed.
International companies using our EOR service get payroll as part of the same engagement. One relationship, one point of contact, complete statutory compliance across employment and payroll.
We have managed payrolls from 5 to 800 employees. The process scales cleanly as you add headcount without any disruption to your compliance cycle or reporting.
You have a single point of contact who knows your payroll setup, your employees, and your requirements. When something changes, you call one person who actually knows your account.
We collect your existing payroll data, employee records, salary structures, and statutory registration details. Setup typically takes one to two weeks depending on headcount and complexity.
You share attendance data, new joiners, exits, salary revisions, and any variable components before the agreed cutoff date each month. That is the extent of your monthly involvement.
We compute salaries, generate payslips, prepare bank files, calculate all statutory deductions, pay challans, and file returns. All before your salary payment date.
You receive a full monthly report covering payroll processed, filings completed, compliance status, and any items requiring your attention. Everything documented and archived.
A leading Indian technology startup engaged XMS in 2019 when they had 20 employees. As the company scaled rapidly, XMS managed payroll for every stage of growth, from 20 to 100 to 400 to 800 employees, handling all PF, ESI, TDS, PT, and LWF compliance throughout. Not a single statutory penalty was incurred across the entire six-year engagement. At peak the company employed approximately 800 people with XMS managing the full payroll function and compliance calendar. The partnership is ongoing.
A US-based company engaged XMS to build and manage their India team without a local entity. XMS employed the team under our Employer of Record arrangement and ran payroll from the first hire. The client received monthly payroll summaries aligned with their US financial reporting requirements, full statutory compliance across PF, ESI, TDS, and PT, and a clean audit trail that satisfied both their India operations team and their US finance function. As the India team grew, payroll scaled without any process disruption.
Tell us your headcount, your current setup, and what is causing the most problems. We will give you a clear picture of what we can do, what it will cost, and how quickly we can take over. Same day response.