Key Employer Obligations:
 
Employees’ Provident Fund (EPF)
Provident Fund is a statutory retirement savings scheme that can apply depending on the employee and establishment. Where applicable, employer and employee contributions are generally made at prescribed rates, commonly 12% each on the relevant wage base.

Employees’ State Insurance (ESI)
ESI provides social security and medical benefits for eligible employees. Current contribution rates are 3.25% from the employer and 0.75% from the employee, subject to the applicable wage and eligibility rules.

Gratuity
Gratuity is a statutory long-service benefit payable in qualifying circumstances. Under the current social-security framework, it is generally calculated at 15 days’ wages for each completed year of service, with different eligibility treatment applying in some cases, including fixed-term employment.

Professional Tax
Professional Tax is a state-level levy and is not applied uniformly across India. Where applicable, the amount, registration requirements and payroll deductions depend on the state in which the employee works.

Income Tax Withholding (TDS)
Employers are responsible for deducting applicable income tax from salary payments and remitting it to the tax authorities. The amount depends on the employee’s taxable income and the tax regime and declarations applicable to them.

How Higher Ground Supports You
Higher Ground manages the payroll and statutory administration around your India team.
We coordinate salary processing, applicable tax withholding, EPF and ESI administration, gratuity provisioning and other required payroll obligations, while giving you a clear view of employee costs and statutory components.
This means your internal team does not need to manage the day-to-day mechanics of Indian payroll and social-security administration directly.