Indian Payroll Software: Key Features Every Indian Business Needs in 2026
Indian payroll requires businesses to manage both central and state-level rules. Professional tax varies by state and applies only where a state or UT levies it. Labour welfare fund requirements also vary by state, including coverage, contribution amounts and filing schedules. Companies with employees across multiple states may therefore need to manage different state-level compliance requirements alongside national obligations such as EPF, ESI and salary TDS. Moreover, the compliance framework also changed in 2026. India’s labour codes have consolidated several earlier central labour laws, including legislation covering statutory bonus. The Income Tax Act, 2025 now governs salary TDS for payments from