Payroll compliance in India comes down to hitting the right deductions on the right dates. The headline rule of thumb: TDS by the 7th, PF and ESI by the 15th of the following month, plus periodic returns. Here's a practical checklist — monthly, quarterly and annual — you can actually follow.
Every month
- ☐ Process payroll — calculate gross-to-net for each employee
- ☐ Deduct PF, ESI, Professional Tax and TDS correctly
- ☐ Deposit TDS on salary — by the 7th of the next month
- ☐ Deposit & file PF (ECR challan) — by the 15th
- ☐ Deposit & file ESI — by the 15th
- ☐ Pay Professional Tax — per your state's due date
- ☐ Issue payslips to all employees
- ☐ Update registers (attendance, wages, statutory)
Every quarter
- ☐ File TDS return (Form 24Q) for salaries
- ☐ Reconcile PF/ESI deposits against payroll
- ☐ Review new joiners/exits for PF, ESI and PT impact
Every year
- ☐ Issue Form 16 to employees (salary TDS certificate)
- ☐ Annual PF/ESI reconciliations and filings
- ☐ Professional Tax annual return (where applicable)
- ☐ Review salary structures for the new financial year
Who this applies to
PF compliance kicks in at 20 employees, ESI at 10 (20 in some states) for wages up to ₹21,000/month. But TDS on salary and payslip obligations can apply well before that. When in doubt, treat compliance as mandatory and confirm your specific position. For the underlying rules, see our payroll basics guide and PF & ESI registration guide.
Due dates and thresholds change periodically — verify current dates each year, or hand the calendar to a provider who tracks it for you.
Frequently asked questions
What is payroll statutory compliance in India?
Deducting, depositing and filing all salary-linked contributions and taxes — PF, ESI, Professional Tax and TDS — by their legal due dates, plus issuing compliant payslips and maintaining registers.
What are the monthly payroll compliance due dates?
As a rule: TDS by the 7th, and PF and ESI by the 15th of the following month. Professional Tax dates are set by each state. Confirm current dates, as they can change.
What returns do I need to file for payroll?
Monthly PF (ECR) and ESI filings, quarterly TDS returns (Form 24Q), state Professional Tax returns, and the annual Form 16 to employees, plus PF/ESI reconciliations.
What happens if I miss a payroll compliance deadline?
Late deposits and filings attract interest, late fees and damages, and repeated default can lead to prosecution. Employees may also be unable to claim benefits. A fixed monthly calendar prevents this.
Do small businesses need to follow payroll compliance?
Yes. Once you cross the thresholds (PF at 20, ESI at 10), it's mandatory regardless of size — and TDS/payslip rules can apply earlier. Many small businesses outsource it to stay safe.