India payroll compliance

Payroll Software for India — PF, ESI & TDS Automated

Peymatrix handles every India-specific payroll requirement — from EPF and ESIC contributions to TDS deduction and Form 16 generation — so your HR team can run payroll accurately in minutes, not hours.

What is payroll software for India?

India has a complex statutory payroll framework. Employers are required to deduct EPF, ESIC, TDS, and Professional Tax from employee salaries each month and remit these to the relevant authorities within strict deadlines. Missing a deadline or applying the wrong deduction rates results in penalties and regulatory notices.

Payroll software for India automates all of this. It maintains the latest statutory rates, applies the right deductions per employee based on their salary, location, and eligibility, generates the required government files, and produces payslips — all in one workflow.

How Peymatrix handles India payroll

EPF / PF
Employee (12%) and employer (12%) PF contributions calculated on basic salary. Challan-ready output for EPFO.
ESIC
Employee (0.75%) and employer (3.25%) ESIC contributions for eligible employees. Monthly liability tracked.
TDS — Section 192
Income tax deducted at source based on projected annual income with applicable HRA, 80C, and other exemptions.
Professional Tax
State-wise PT slabs configured per employee work location. Currently supports all PT-applicable states.
Form 16
Auto-generated Part A and Part B for every employee at year-end. Downloadable from employee portal.
Form 10E
Calculates relief under Section 89(1) and prepares Form 10E data for employees with arrear salary.

Key capabilities

  • One-click payroll run — process all employees in a single action
  • EPF and ESIC contribution calculations with challan-ready output
  • TDS (Section 192) deduction based on estimated annual income
  • Form 16 (Part A & B) generation for all employees
  • Form 10E calculation for relief under Section 89(1)
  • Professional Tax deduction — state-wise slab configuration
  • Salary slip generation and delivery every pay cycle
  • Salary revision history with effective-date tracking
  • POSH compliance tracker

Frequently asked questions

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