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Aether Blue Associates

Payroll management

Payroll services in India

We become the legal employer of your Indian team — compliant contracts, monthly payroll, EPF/ESI enrollment, TDS, benefits and settlements, end to end, with no Indian entity needed on your side.

The Indian payroll compliance stack, for a US reader

US payroll has a familiar shape: withholding, a quarterly return, a year-end form. India has the same shape and different parts, and the parts do not map one-to-one.

TDS is tax deducted at source on salaries — the withholding equivalent. It is deposited monthly and reported quarterly on Form 24Q, and at year end each employee receives a Form 16, which is the closest analogue to a W-2. The EPF ECR is the monthly Provident Fund filing; Provident Fund is India’s mandatory retirement contribution, roughly comparable in function to a 401(k) but statutory rather than elective. ESI is Employees’ State Insurance, a contributory medical and cash-benefit scheme that applies to employees earning up to ₹21,000 a month in gross pay. Professional Tax is a small state-level levy, typically around ₹200 a month, with its own schedule in each state.

Each of those has its own deadline, its own portal and its own consequence for being late. Running them is less about difficulty than about never missing one, twelve times a year, in every state where you employ someone.

Why the 50% wage rule
changes your structuring

Indian salaries have traditionally been split into a small Basic component and a larger collection of allowances, because most statutory costs are computed on Basic rather than on total pay. That arithmetic no longer works.

Under the uniform wage definition introduced by the Code on Wages, Basic + DA must be at least 50% of total remuneration, and excess allowances are added back into “wages” for statutory purposes. Provident Fund, gratuity, bonus and leave encashment are then computed on that larger base.

The practical effect is that a structure designed to minimize statutory cost under the old definition now produces a mismatch between what was contributed and what should have been — and that gap is retrospective exposure sitting on your entity’s books. We design salary structures on the current rule from the start, so the base is right before anything is computed on it.

What your finance team receives

Payroll that cannot be reconciled is not finished. Every cycle produces payslips for employees and, for you, the payroll register behind them: gross, each statutory deduction, employer contributions and net, line by line.

Alongside the register come the filing proofs — the challans and acknowledgements showing that each deposit was made and each return filed. Your finance team can tie the month’s payroll cost to the money that actually left, and to the returns that were lodged against it, without asking us for anything.

Pricing

Contact us

for pricing

One flat monthly fee per employee, billed in USD and quoted against your headcount and roles. Salaries and statutory contributions are passed through at actuals with proofs. No setup fee, deposit or platform fee.

Scope

What's included

Salary structuring

Built on the new Labour Codes 50% wage definition

Included

Monthly payroll

Processing, payslips and the payroll register

Included

TDS

Monthly deposit and quarterly 24Q returns

Included

Form 16

Annual salary tax certificate for every employee

Included

EPF ECR

Monthly Provident Fund filing

Included

ESI

Contributions where gross is ₹21,000 or below

Included

Professional Tax

State-wise deposit and return

Included

MIS

Monthly reporting for your finance team

Included

Fit

Who it's for

US companies with an Indian entity and no payroll function inside it

FAQ

Questions about
this service

How does payment work each month?

We invoice once monthly in USD — salaries and statutory contributions at actuals plus our fee — payable by wire before the salary date. Salaries are paid to employees on schedule every month; we maintain the working discipline that your team's payday is never dependent on same-day transfers. Filing proofs and payroll registers accompany every cycle.

Yes. India's four Labour Codes came into force on 21 November 2025, replacing 29 earlier laws. All our employment contracts and salary structures follow the new uniform wage definition (Basic + DA at ≥ 50% of pay), statutory contributions are computed on the new wage base, fixed-term gratuity eligibility is provisioned from year one, and we track central and state rule notifications as they are issued — so our clients never carry transition risk.

Yes — we employ across all Indian states and major cities. State-specific items (Professional Tax schedules, Shops & Establishments rules, state holidays, and state Labour Code rules) are applied per each employee's work location, and our compliance calendar tracks them state-wise.

Further reading

Related guides

Guide

The 50% wage rule: how India's new wage definition changes your payroll math

Learn more ➞

Guide

What an employee in India actually costs: EPF, ESI, gratuity and bonus explained

Learn more ➞