As of 21 October 2026
India employer compliance guide
One table of the statutory items Varimo remits on Employer of Record (EOR) payroll: who pays, when it is filed, and what it is not. Planning aid only. Not legal or tax advice.
| Obligation | Employer cost | Employee cost | When filed or paid | Notes |
|---|---|---|---|---|
| Provident Fund (PF), including Employees' Pension Scheme (EPS), Employees' Deposit Linked Insurance (EDLI), and administration | 12% of restricted Provident Fund (PF) wages (Employees' Pension Scheme (EPS) 8.33% plus Employees' Provident Fund (EPF) 3.67% when EPS eligible; otherwise 12% to EPF), plus EDLI 0.5% and EPF administration 0.5% of restricted PF wages. Wage ceiling ₹25,000 per month from 17 September 2026 under S.O. 5109(E) (₹15,000 before that date). September 2026 is a split month: ₹15,000 for 1 to 16 September and ₹25,000 for 17 to 30 September, on one ECR due 15 October 2026. | 12% of restricted Provident Fund (PF) wages. | Typically remitted by the 15th of the following month (Employees' Provident Fund Organisation (EPFO) calendar). | Rates match Varimo statutory floors used in payroll policy. PF-eligible wages follow the cost to company (CTC) template (basic, conveyance, and fixed allowance; house rent allowance (HRA) excluded). |
| Employees' State Insurance (ESI) | 3.25% of ESI gross when monthly gross is at or below ₹21,000. | 0.75% of ESI gross when monthly gross is at or below ₹21,000. | Typically remitted by the 15th of the following month (Employees' State Insurance Corporation (ESIC) calendar). | Above the ₹21,000 gross ceiling, both shares are zero in this model. |
| Professional tax, including Telangana | None as an employer levy in the default policy. The employer withholds and remits the employee amount. | Default planning amount ₹200 per month when monthly gross is at or above ₹25,000. Telangana: ₹2,400 a year (₹200 per month slab as applicable). | State challan calendar (often monthly). Work location decides the state. | Multi-state professional tax is tracked by work location on Varimo payroll. Confirm the live slab with the state commercial-tax notification. |
| Tax Deducted at Source (TDS) on salary | None as an extra cost. The employer withholds from salary. | Income tax under the elected regime, plus 4% health and education cess, withheld monthly. | Withheld each payrun; deposited on the income-tax calendar (often the 7th of the following month). | New regime uses simplified slabs, ₹75,000 standard deduction, and Section 87A rebate. Old regime can include house rent allowance (HRA), Section 80C, and Section 80D. Declarations change withholding. |
| Gratuity | 4.81% of basic as an accrual inside cost to company (CTC) for planning. | None as a monthly deduction. | Paid on eligible exit, not as a monthly statutory challan. | Eligibility: 5 years for permanent employment; 1 year for fixed-term under the Code on Social Security, 2020. Statutory cap ₹20 lakh. Gratuity billing on the Employer of Record (EoR) invoice is pending a decision and is not an extra line on the published CTC-plus-fee invoice. |
| Maternity leave | 26 weeks of paid maternity leave is statutory for eligible employees (Code on Social Security, 2020, s.60). Cost sits in the employment package, not as a separate monthly challan. | None as a payroll deduction. | Leave is granted when the employee is eligible; no monthly filing in this table. | Paternity leave is often a supplemental benefit, not a universal statute. Confirm handbook terms on the Employer of Record (EOR) assignment. |
Sources
Figures match statutory floors already used on this site. Confirm live notifications before you file.