Payroll, PF, ESIC & professional tax

A well-designed CTC of ₹12 lakh can put ₹9 lakh more in the employee's hand annually than a poorly-designed one — with zero extra cost to the company. The levers: Basic at 40-50% (drives PF but also HRA), HRA at 40-50% of Basic (city-dependent exemption), NPS employer contribution at 10% of Basic (deductible under 80CCD(2)), meal cards, LTA, phone reimbursement, and internet reimbursement — all tax-free or tax-efficient components.

For the new tax regime, most exemptions vanish — the only survivors are employer NPS contribution under 80CCD(2), gratuity, and the ₹75,000 standard deduction. This changes the optimal structure dramatically; NPS employer share + higher basic + gratuity becomes the winning combination for new-regime employees.

PF challans + ECR (Electronic Challan-cum-Return) are due by the 15th of the following month, filed on unifiedportal-emp.epfindia.gov.in. ESIC contribution + return due by 15th on esic.gov.in. Professional Tax (PT) varies by state — Maharashtra monthly by 30th, Karnataka annual by 30 April, Telangana monthly by 10th. Labour Welfare Fund (LWF) is a bi-annual filing in most states.

TDS on salary (Section 192) is deducted every month based on the employee's declared regime and expected annual income. Quarterly Form 24Q must be filed by 31st of the month following the quarter (except Q4 which is 31 May). Form 16 is issued by 15 June for the previous FY.