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Payroll
Payroll compliance basics for a growing team
As you add employees, payroll picks up statutory obligations: in India, Provident Fund, ESI and professional tax plus salary TDS; in the UAE, salaries generally must run through the Wage Protection System (WPS). Getting these right from your first hire avoids penalties later.
India: what kicks in
- Provident Fund (PF) — typically once you cross the employee threshold.
- ESI — for employees below the wage limit, in covered areas.
- Professional tax — state-specific.
- Salary TDS — computed monthly, filed quarterly via Form 24Q.
UAE: WPS from day one
Most UAE mainland employers must pay staff through WPS. Plan for end-of-service gratuity and align salary structures with UAE labour law. Many free zones expect WPS or an equivalent too.
Keep payroll and tax in sync
Salary TDS should match your payroll each month so your Form 24Q and Form 16 reconcile. Disconnected payroll and TDS is a common source of notices.
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Reviewed by Abhishek Kumar. General information, not individual tax advice — rules change, so confirm current rules for your situation before acting.