Hire and pay employees in India
Provident Fund, ESI, TDS, Professional Tax, and state-level labour compliance — all automated. Run payroll in INR across every state.
AT A GLANCE
India employment facts
PROVIDENT FUND
Automated EPF and EPS contributions
India's Employees' Provident Fund (EPF) requires a combined contribution of 24% of basic salary plus dearness allowance: 12% from the employer and 12% from the employee. Of the employer's 12%, 8.33% is diverted to the Employees' Pension Scheme (EPS) and 3.67% goes to EPF. Remote& automatically calculates the correct split, applies the statutory wage ceiling for EPS, generates monthly ECR (Electronic Challan cum Return) files for EPFO filing, and tracks Universal Account Numbers (UANs) for every employee.
- Automatic EPF/EPS split calculation on basic + DA
- Monthly ECR file generation for EPFO portal
- UAN tracking and KYC compliance per employee
- EDLI (Employees' Deposit Linked Insurance) contribution management
ESI COMPLIANCE
Employees' State Insurance contributions and reporting
The Employees' State Insurance (ESI) scheme provides medical, sickness, maternity, and disability benefits to employees earning up to INR 21,000 per month. The combined ESI rate is 4.75%: 3.25% from the employer and 0.75% from the employee. Remote& automatically identifies ESI-eligible employees based on their gross wages, calculates contributions each cycle, and generates the monthly contribution statements required by ESIC for timely filing.
- Automatic ESI eligibility determination (INR 21,000 threshold)
- Employer (3.25%) and employee (0.75%) contribution split
- Monthly ESIC return data generation
- IP number tracking and new employee registration
TDS & INCOME TAX
Tax Deducted at Source with old and new regime support
Indian employers must deduct income tax at source (TDS) from employee salaries under Section 192 of the Income Tax Act. Employees can choose between the old and new tax regimes, each with different slabs and deduction eligibility. Remote& supports both regimes, calculates monthly TDS based on projected annual income, processes investment declarations (80C, 80D, HRA, etc.), and generates Form 16 and Form 24Q for quarterly TDS returns.
- Old regime and new regime tax calculation support
- Investment declaration management (Section 80C, 80D, HRA)
- Monthly TDS calculation and quarterly Form 24Q generation
- Year-end Form 16 generation for all employees
STATE LABOUR COMPLIANCE
Professional Tax and state-specific labour laws
India's labour compliance varies significantly by state. Professional Tax rates and slabs differ across states like Maharashtra, Karnataka, West Bengal, and Tamil Nadu. Each state also has its own Shops and Establishments Act governing working hours, leave, and employment conditions. Remote& handles Professional Tax calculations for every state where your employees are based, manages state-specific leave entitlements, and ensures compliance with local labour regulations across all of India.
- Professional Tax calculation for all applicable states
- State-specific Shops and Establishments Act compliance
- Leave entitlements per state (earned, casual, sick leave)
- Labour Welfare Fund contributions where applicable
FAQ
Frequently asked questions about hiring in India
Both the employer and employee contribute 12% of basic salary plus dearness allowance to EPF. The employer's 12% is split into 3.67% toward EPF and 8.33% toward EPS (Employees' Pension Scheme, capped at INR 15,000 basic salary). Additionally, the employer pays 0.5% toward EDLI (insurance) and administrative charges of 0.5% on EPF. PF is mandatory for establishments with 20 or more employees, and for employees earning up to INR 15,000 per month at the time of joining.
ESI is mandatory for establishments with 10 or more employees (20 in some states). Employees earning gross wages up to INR 21,000 per month (INR 25,000 for persons with disabilities) are covered. The employer contributes 3.25% and the employee contributes 0.75% of gross wages. ESI provides medical care, sickness benefits, maternity benefits, disability benefits, and dependants' benefits. Once an employee's wages exceed the threshold, they remain covered until the end of the contribution period.
The old regime offers various deductions and exemptions (Section 80C up to INR 1.5 lakh, HRA exemption, 80D health insurance, etc.) with higher base tax rates. The new regime (default from FY 2023-24) offers lower tax rates but removes most deductions and exemptions. Under the new regime, income up to INR 3 lakh is exempt, with slabs of 5% (3-6 lakh), 10% (6-9 lakh), 15% (9-12 lakh), 20% (12-15 lakh), and 30% (above 15 lakh). Employees can opt for the old regime if it benefits them. Remote& supports both regimes and helps employees compare their tax liability.
Professional Tax is a state-level tax deducted from employee salaries, capped at INR 2,500 per year by the Constitution. Not all states levy it — currently, states like Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Tamil Nadu, Telangana, Gujarat, and others impose Professional Tax with varying slab structures. For example, Maharashtra charges INR 200 per month for salaries above INR 10,000, while Karnataka has a graduated slab. Remote& automatically applies the correct Professional Tax slab based on the employee's work state.
Leave entitlements in India vary by state under the respective Shops and Establishments Acts. Generally, employees receive 15 days of earned/privilege leave per year (1 day for every 20 days worked), 12 days of casual leave, and 12 days of sick leave. Some states combine these differently. Maternity leave is 26 weeks for the first two children under the Maternity Benefit Act. The Factories Act provides 1 day of earned leave for every 20 days worked. Remote& tracks leave entitlements based on each employee's applicable state law.
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