An onboarding checklist for Indian new starters
Reviewed by Mellow Editorial Team, HR & payroll content team
Onboarding a new employee in India requires completing a defined set of legal, payroll and documentation steps — most of which must happen within the first week of joining. Miss any of them and you face compliance gaps that are costly to fix later.
Collect the right documents before day one
Start the paperwork before the employee sets foot in the office. You need:
- PAN card — mandatory for TDS deduction and Form 16 issuance
- Aadhaar card — required for EPF registration and identity verification
- Bank account details — cancelled cheque or passbook copy for salary credit
- Previous employer's Form 16 and salary slips — needed to calculate TDS correctly for the full financial year, especially if they joined mid-year
- Educational and experience certificates — for background verification
- Address proof — utility bill, Aadhaar or passport
If the employee is joining from another organisation, also collect their EPF UAN (Universal Account Number). The UAN stays with the employee throughout their career; you link your establishment to it, not the other way around.
Register the employee for statutory deductions
Once you have the documents, complete the statutory registrations. These are not optional.
EPF: Employees earning below the statutory wage ceiling must be enrolled under the Employees' Provident Fund. The employee contributes 12% of basic wages and you contribute a matching 12%. Some portion of your employer contribution goes to the Employees' Pension Scheme (EPS). File the joining declaration (Form 11) and generate or link the UAN within the prescribed timeline.
ESI: If your establishment is covered under the Employees' State Insurance Act and the employee's gross wages fall below the applicable threshold, they must be registered under ESI as well. Do this at joining, not after the first payroll run.
Gratuity nomination: Although gratuity only becomes payable after five years of continuous service, employees should submit a nomination form (Form F under the Payment of Gratuity Act) at the time of joining. Keep it on file.
Professional Tax: If your state levies professional tax, deduct and remit it as required from the first month of salary.
Set up TDS correctly from the start
TDS on salary is deducted under Section 192 of the Income Tax Act and deposited monthly. Getting this right from day one prevents year-end corrections.
At joining, give the employee a declaration of investment proofs or a simple form asking which tax regime they want to follow — the old regime or the new regime. Under the new regime, slabs rise up to 30%, a Section 87A rebate applies for lower incomes, and a 4% health and education cess applies on the tax amount. Employees on the old regime can claim deductions, which reduces the TDS you need to withhold.
If the employee has income from a previous employer in the same financial year, factor in their Form 16 or salary certificate so you do not under-deduct. You will file Form 24Q quarterly and issue Form 16 by the due date at year-end.
Issue the right employment documents
Onboarding is not just about collecting documents — you also need to give the employee several things in writing.
- Appointment letter: states the designation, CTC, probation period, notice period and place of work
- NDA or confidentiality agreement if relevant to the role
- HR policies acknowledgement: include your leave policy, code of conduct, POSH policy and IT/data usage policy. Under India's POSH Act, every employer with ten or more employees must constitute an Internal Complaints Committee and inform employees of it at joining
- Salary structure breakout: show how the CTC is split — basic, HRA, allowances, employer PF contribution, gratuity provision and so on. This matters for the employee's own tax planning
Under the four Labour Codes that came into force in 2025, the definition of "wages" has been consolidated and affects how you compute PF, gratuity and other statutory dues. Make sure your salary structure is designed in line with the Code on Wages.
Complete the internal setup
The legal compliance is the critical path, but do not let the internal setup lag behind.
- Create the employee record in your payroll system with the correct date of joining and salary details
- Set up their email, system access and any software licences before they arrive
- Assign a buddy or reporting manager and brief them
- Add the employee to the monthly payroll cycle — confirm the cut-off date so their first salary is not delayed
- Schedule a check-in at the end of the probation period with a clear written outcome
Keep a checklist that is signed off by HR and the employee on day one. It creates a record that all steps were completed and gives the new joiner clarity about what has been done on their behalf.
---
Run HR and payroll in India with Mellow
Mellow brings HR, payroll and 12 AI agents into one platform — built to handle India properly, with payroll included, from £4 per employee per month. The AI agents don't just answer questions; they generate contracts, run cost estimates and draft letters for you.
[Start a free trial →](/register)