Native India payroll
India payroll — TDS, PF and ESI in one place.
Tax deducted at source under the chosen regime, Provident Fund, Employee State Insurance and state professional tax — all calculated correctly, with submission guides for TRACES, EPFO and ESIC.
- ✓ TDS + PF + ESI
- ✓ §87A rebate applied
- ✓ Professional tax per state
India payroll
What India payroll actually has to do
The tax authority is Income Tax Department. Currency is INR. TDS, EPF and ESI — calculated to the rupee and ready to file.
- TDS (income tax)
- Tax deducted at source under India's new tax regime, with the §87A rebate and the 4% health & education cess applied. The old regime (with per-employee §80C declarations) is on the roadmap.
- Provident Fund (PF)
- 12% employee + 12% employer on basic + dearness allowance, capped at the ₹15,000 statutory wage. Part of the employer share is correctly routed to the Employees' Pension Scheme (EPS).
- ESI
- Employee State Insurance — 0.75% employee + 3.25% employer, applied automatically for employees earning up to ₹21,000 per month.
- Professional tax
- A state-level tax that exists in some states and not others, capped at ₹2,500 per year — Mellow applies the right rule for the employee's state.
- Submission to government portals
- TDS via TRACES / Challan 281, PF via the EPFO unified portal, and ESI via ESIC — Mellow prepares each return with a step-by-step submission guide.
India payroll — questions answered
Quick, honest answers — also exposed as structured data so AI search engines can read them.
- Which tax regime does Mellow apply?
- India's new tax regime, with seven slabs, the §87A rebate and the 4% cess. The old regime requires per-employee §80C investment declarations and is on the roadmap.
- How is PF calculated?
- 12% from the employee and 12% from the employer, on basic + dearness allowance up to the statutory ₹15,000 wage cap. A portion of the employer's 12% (8.33%) goes to the EPS pension scheme.
- When does ESI apply?
- Whenever the employee's gross monthly salary is at or below ₹21,000 — 0.75% from the employee and 3.25% from the employer. Above that threshold ESI does not apply.
- Does Mellow handle professional tax?
- Yes — Mellow applies the correct professional-tax rule for the employee's state, capped at ₹2,500 per year. States without professional tax (e.g. Delhi) are recognised.
- Does Mellow file with TRACES / EPFO / ESIC?
- Mellow calculates the returns and provides a step-by-step submission guide for each portal. You file through the relevant government portal — direct integration is a planned enhancement.
Payroll, country by country
Mellow runs native payroll in six countries from one platform.
Run India payroll on Mellow
The full HR platform — payroll included — from ₹420 per employee per month. 14-day free trial. No credit card required.