All payroll deadlines, statutory deductions, PF/ESI limits, and compliance requirements every Indian business must meet in 2025.
Key Statutory Deductions
Provident Fund (PF)
- Applicable: Establishments with 20+ employees
- Employee contribution: 12% of Basic + DA
- Employer contribution: 12% (3.67% EPF + 8.33% EPS)
- Due date: 15th of following month
- Penalty: 12% interest + damages up to 25% of arrears
Employee State Insurance (ESI)
- Applicable: 10+ employees, wages ≤ ₹21,000/month
- Employee: 0.75% of gross wages
- Employer: 3.25% of gross wages
- Due date: 15th of following month
TDS on Salary (Section 192)
- Rate: Per applicable income tax slab
- Due date: 7th of following month (March salary: 30th April)
- Quarterly return: Form 24Q within 15 days of quarter end
Salary Structure for Tax Optimisation
- HRA — 40-50% of Basic, exempt against actual rent
- LTA — Exempt twice in a 4-year block
- NPS — Additional ₹50,000 deduction (Section 80CCD(1B))
- Food Coupons — ₹2,200/month exempt
Annual Compliance Calendar
| Compliance | Due Date |
|---|---|
| PF/ESI payment | 15th of next month |
| TDS payment | 7th of next month |
| Form 24Q (TDS return) | 15th after quarter end |
| Form 16 to employees | 15th June |
| PF annual return | 25th April |
Top 5 Payroll Compliance Mistakes
- Not enrolling eligible employees in PF/ESI on joining date
- Calculating PF on basic lower than minimum wages
- Missing March TDS remittance (due 30 April, not 7 April)
- Not issuing Form 16 by 15 June — ₹100/day penalty per employee
- Incorrect PT deduction for applicable states