Service
Payroll, month by month
Payroll is a monthly cycle with people waiting at the end of it. A provider can run the calculations and paperwork, but the inputs and the decisions stay with you as the employer.
One month of payroll
The sequence below is typical. Set your own dates with Deepak Mittal, and check statutory dates on the official portals.
| Step | You, the employer | The payroll provider |
|---|---|---|
| 1. Inputs | Send attendance, leave, joiners and leavers, salary changes, advances and bonuses | Chase gaps and question anything unusual |
| 2. Calculation | Answer queries | Work out gross pay, deductions and net pay |
| 3. Approval | Review the summary and approve it | Show changes from last month |
| 4. Payment | Pay salaries from your own account | Provide the payment file, if agreed |
| 5. Payslips | Decide how staff receive them | Generate payslips |
| 6. Statutory | Deposit deductions, or approve deposit | Prepare TDS and, where applicable, PF and ESI details |
| 7. Records | Keep the master records | Hand over monthly reports |
The labour codes: why to ask now
India's four labour codes came into force on 21 November 2025, under Gazette notifications of that date (a few provisions of two codes were listed separately). They share one definition of wages: if excluded payments, such as most allowances, are more than half of total remuneration, the excess is added back to wages.
That can change the base on which PF, ESI, bonus and gratuity are worked out, especially where basic pay is kept low. Central rules under the Code on Wages were notified in May 2026, and a new Employees' Provident Funds Scheme, 2026 has been notified under the Code on Social Security. Delhi's own rules may still be in draft, so check before restructuring pay.
What to do: go through your salary structure against the codes' wage definition with Deepak Mittal when payroll is set up, before PF, ESI and gratuity are worked out on it.
Does PF or ESI apply to you?
Under the First Schedule to the Code on Social Security, PF applies to establishments with 20 or more employees and ESI to those with 10 or more, with some exceptions.
- PF wage ceiling: ₹25,000 a month from 17 September 2026, raised from ₹15,000 (S.O. 5109(E))
- ESI coverage: employees earning up to ₹21,000 a month, or ₹25,000 for persons with disability
- Usual contributions: PF 12% each from employer and employee, with 10% for a few listed industries; ESI 3.25% employer and 0.75% employee
Confirm how these apply to your business with EPFO (opens in a new tab) and ESIC (opens in a new tab).
Do not assume you are exempt because you are small. Do not assume the rules for your previous employer apply to you either.
Questions to ask Deepak Mittal before work starts
- What is your cut-off date for inputs, and what if I am late?
- Will you show me each employee's change from last month?
- Who handles TDS on salaries, and who issues the annual certificate?
- Are PF and ESI registration and returns included, or only calculation?
- Who checks new hires' PF and ESI details?
- How do you handle final settlements for those leaving?
- How is salary data kept confidential, and who can see it?
Common mistakes
- Attendance in one place and advances in another, so deductions are missed.
- Paying cash with no record, which leaves you without proof.
- Treating everyone as a contractor to avoid payroll. The label does not decide what the relationship is, so ask for advice if you are unsure.
- Sharing a full salary sheet by group chat. Salary data deserves care.
- Not collecting employee tax declarations, which leads to wrong TDS.
What affects the fee
Number of employees, variable pay, attendance complexity, number of locations, statutory filings included, and whether final settlements are covered. Ask for the fee in writing for a defined scope.
Related work
Salary TDS has its own returns. See TDS returns. If you are thinking of outsourcing more than payroll, see outsourced accounting.
Sources checked, November 2026
- Gazette of India: commencement notifications of 21 November 2025 for the Code on Wages (opens in a new tab) and Code on Social Security (opens in a new tab); Code on Wages, 2019 (opens in a new tab), section 2(y); EPF contribution notification, 1 July 2026 (opens in a new tab)
- Ministry of Labour: S.O. 5109(E), PF wage ceiling (opens in a new tab); Code on Social Security, First Schedule (opens in a new tab)
- ESIC: coverage (opens in a new tab) and contribution rates (opens in a new tab) (all read 10 November 2026)
Looking for payroll help?
Tell us your staff count, how you track attendance, and whether PF and ESI are already set up.
