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Payroll Under the New Labour Codes

India’s four Labour Codes came into force on 21 November 2025. Where excluded allowances exceed 50 per cent of total remuneration, the excess is added back to wages (Basic plus DA plus retaining allowance) for PF, gratuity and other wage-linked dues. Many Indian payrolls were built on a low basic, so their statutory wage base has changed.

Monthly payroll delivery
CA-led team
50% upfront, 50% on delivery

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Transparent 3-tier pricing

Pick the speed and depth that matches your need. Same quality, same CA team — only the timeline changes.

starter

₹4,999

Timeline: Monthly, up to 20 employees

Labour Code compliance review
CTC restructuring model
Zoho Payroll setup
Monthly payroll, up to 20 employees
PF, ESI and professional tax challans
TDS on salary and Form 24Q
Gratuity provisioning
Full and final settlement automation
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standard

₹19,999

Timeline: Monthly, up to 100 employees

Labour Code compliance review
CTC restructuring model
Monthly payroll, up to 100 employees
PF, ESI and professional tax challans
TDS on salary and quarterly Form 24Q
Form 16 issuance
Gratuity provisioning and actuarial input
Full and final settlement automation

pro

₹44,999

Timeline: Monthly, unlimited

Labour Code compliance review
Monthly payroll, unlimited employees
PF, ESI and professional tax challans
TDS on salary, Form 24Q and Form 16
Gratuity provisioning and actuarial input
F&F settlement within the 2-day window
Appointment letter templates
Multi-state compliance

Government fee — paid by you at actuals

PF, ESI, professional tax and TDS on salary are statutory dues paid to the respective authorities at actuals and are not part of our fee. The Zoho Payroll subscription is paid to Zoho directly. Detailed rules under the four Codes are notified state by state and not every state has finished, so we check the position for your states before implementation rather than assuming a national one.

Every price above is a professional fee, excluding GST and government charges. 50% upfront, 50% on delivery.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

How it works

Week 1

Model the gap

Your current structure tested against the 50 per cent wage rule, with the increase in PF and gratuity quantified per employee and in total.

Week 2

Restructure the CTC

A compliant structure designed to manage the take-home impact, plus the transitional gratuity computation for staff in service before 21 November 2025.

Week 3

Configure payroll

Salary components mapped to the new wage definition in Zoho Payroll, with PF, ESI, professional tax and TDS set up against them.

Monthly

Run and file

Payroll processed, payslips issued, PF and ESI challans paid, professional tax filed, TDS under Section 392 of the Income-tax Act, 2025 (old Section 192) deducted and Form 138 (old Form 24Q) filed quarterly.

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Documents required

Current CTC structure and salary breakup for every employee
Existing appointment letters and employment contracts
PF and ESI registration certificates and establishment codes
Professional tax registration for each state you employ in
TAN and previous quarters’ Form 138 / Form 24Q, where filed
Attendance and leave records
List of fixed-term employees and their contract dates
Details of gig or platform workers engaged, if any

Why CorporateWalla®?

The 50 per cent wage rule, quantified

Excluded allowances above half of total remuneration are added back into the wage base. We model what that costs you before you commit to a structure.

PF and gratuity on a wider base

The rates have not changed. The wage base they apply to has expanded, which is why liabilities rise per employee even where nobody got a raise.

Take-home explained before it lands

On the same CTC, employee take-home usually falls because more of it goes into PF. Explaining that to your team causes less trouble than a payslip that does it for you.

Fixed-term gratuity after one year

Under the Social Security Code, fixed-term employees qualify pro rata after one year rather than five. If you use fixed-term contracts your provisioning changes materially.

The two-day settlement rule

Wages due on removal, dismissal, retrenchment or resignation must be paid within two working days (Section 17(2), Code on Wages). Manual F&F processes struggle to meet it.

Appointment letters, now universal

Mandatory across all industries rather than only in scheduled employments. If your team does not have them, that is a gap with a template-shaped fix.

Frequently asked questions

Under Section 2(y) of the Code on Wages, wages are Basic plus DA plus retaining allowance. If the excluded allowances exceed 50 per cent of total remuneration, the excess is added back into wages for PF, gratuity, ESI and bonus computation.

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