Payroll Services in India

Mercans stands out as the leading provider of high-quality payroll services in India, offering both Managed and SaaS solutions. Our unwavering dedication to delivering exceptional payroll outsourcing in India is unmatched. With our extensive experience in the payroll sector, Mercans guarantees precise and compliant payroll services, making us the preferred choice for businesses of all sizes.

You can rely on Mercans for timely and accurate payroll transactions, enhanced by the convenience of multi-currency payments tailored to the Indian market. As your dedicated local payroll provider in India, we boast a team of in-country payroll specialists who are thoroughly knowledgeable about local regulations. We provide comprehensive support to ensure a seamless payroll experience customized to your specific business needs.

Payroll Provider in India – Roles and Responsibilities

Mercans offers comprehensive payroll solutions in India that extend beyond basic payroll calculations. As a leading payroll provider in India, we leverage advanced technology to streamline administrative tasks for employers and enhance the employee experience:

• Automatic Payroll Processing: Automated wage calculations and payments.
• Tax Withholding and Wage Garnishment: Accurate deductions in compliance with regulations.
• Tax Filing Services: Handling tax filings and year-end reporting.
• Compliance Expertise: Continuous monitoring of regulatory changes.
• Payroll Reporting: Detailed reporting on payroll metrics.
• Employee Self-Service: Access to payslips and personal data updates.
• Product Support: Dedicated payroll support services.

Payroll Solutions in India

Mercans provides flexible payroll models ensuring compliance, multi-currency capability, and system integrations.

Explore Our Customizable Models

• SaaS (Software as a Service): Suitable for complex, multi-country payroll operations.
• Managed Services: Full payroll outsourcing support.

Everything you need to know before running payroll in India

India Overview

India continues to be one of the fastest-growing major economies, driven by strong domestic demand, digital transformation, and government reforms supporting business growth. It remains a key destination for global companies due to its large workforce and expanding economy.

Minimum Wages

Minimum wages in India are not uniform nationwide and are set by central and state governments depending on industry, skill level, and geographic location. Employers must apply the latest applicable minimum wage rates issued by relevant authorities.

Working Hours and Overtime Pay

Under Indian labor laws:

• Maximum working hours are generally 9 hours per day and 48 hours per week.
• Total working period including rest intervals should not exceed statutory limits.

Overtime

Overtime is regulated by applicable labor laws and typically compensated at a premium rate, often up to twice the normal wage, depending on the applicable statute.

Payroll Cycle

Organizations may operate different payroll cycles:

• Normal Payroll Cycle: Regular salary processing.
• Off-Cycle Payroll: One-time payments such as bonuses.
• Retroactive Payroll: Adjustments for prior periods.
• Final Payroll: Settlement upon employee exit.

13th Month Salary

There is no statutory requirement for a 13th-month salary in India. Bonuses may be paid in accordance with the Payment of Bonus Act or company policy.

Termination and Severance Pay

Termination

Termination must comply with applicable labor laws, including notice periods and regulatory approvals where required.

Severance Pay

Severance entitlement depends on applicable laws, employment terms, and circumstances such as layoffs or business closure.

Company Registration in India

Key steps for company formation include:

• Selecting a business structure.
• Obtaining Director Identification Number (DIN).
• Securing Digital Signature Certificate (DSC).
• Registering with Ministry of Corporate Affairs (MCA).
• Obtaining PAN and TAN.
• Registering for GST and other applicable taxes.
• Opening a corporate bank account.

Payroll Compliance in India

Payroll compliance involves ongoing statutory obligations:

• Withholding and depositing income tax within statutory deadlines.
• Filing quarterly tax returns (Form 24Q).
• Issuing Form 16 annually to employees.

Employee Benefits Compliance

• Employee State Insurance (ESI) contributions where applicable.
• Professional Tax registration and remittance as per state laws.
• Compliance with Shops and Establishment Act and Labour Welfare Fund requirements.

Payroll Taxes in India

Social Security Contributions

Employers must comply with statutory schemes such as:

• Employees’ Provident Fund (EPF).
• Employees’ Pension Scheme (EPS).

Contribution Overview

• Employer contributions are typically calculated as a percentage of wages.
• Monthly remittance deadlines apply.

Personal Income Taxes

Personal income tax depends on residency status and applicable tax regime.

• Resident and Ordinarily Resident (ROR).
• Resident but Not Ordinarily Resident (RNOR).
• Non-Resident (NR).

Tax rates are applied based on current income tax slabs under the applicable regime.

Employee Benefits in India

• Mandatory benefits include statutory contributions and social security coverage.
• Supplementary benefits may include health insurance, accident insurance, life insurance, and retirement savings plans.
• Employers may also provide allowances such as transport, meals, and communication reimbursements.

Streamline Payroll with Mercans’ Technology and Integrations

• Technology: Explore payroll technology here
• Integrations: Seamless integrations here
• Recognitions: Awards and recognitions here