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Updated 26 October 2026 · Reviewed by Abhijit Divekar, HRTailor
📍 Chennai, Tamil Nadu HR AND PAYROLL OUTSOURCING, CHENNAI

HR and Payroll Outsourcing in Chennai

HRTailor runs HR and payroll for Chennai startups and SMEs with 5 to 100 employees. A dedicated HR Manager, a small HR team and a Cloud HRMS handle payroll, PF, ESIC, half-yearly Professional Tax, Labour Welfare Fund, shop registration, onboarding and exits for teams on OMR, in Guindy and Ambattur and along the Sriperumbudur-Oragadam belt, fully online, from ₹10,000 a month.

HRTailor HR outsourcing team for Chennai businesses
Tamil Nadu compliance coveredPF, ESIC, half-yearly PT, Labour Welfare Fund and shop registration handled.
022 4896 7640Call us Mon to Fri, 9:30 am to 6:30 pm
Fully online in ChennaiRun from our Mumbai office through the Cloud HRMS, digital signatures and video reviews.
5 to 100 employeesPlans from ₹10,000 a month. No hidden fees.
WHAT YOU GET

Four numbers, zero asterisks .

200+
Startups & SMEs served across India
₹10K
Starting price per month + GST
3 wk
From signup to fully operational
0
Hidden fees, ever
WHY OUTSOURCE IN CHENNAI

What are HR outsourcing services, and why do Chennai companies use them?

In short

HR outsourcing services mean a specialist firm runs your people processes for a fixed monthly fee. For a Chennai company with 5 to 100 employees, HRTailor provides a dedicated HR Manager, a small HR team and a Cloud HRMS that handle payroll, PF and ESIC returns, Professional Tax, Labour Welfare Fund, registration under the Tamil Nadu Shops and Establishments Act, offer letters, attendance, leave, exits and employee queries. Chennai firms often run three kinds of workforce at once: shift operators in a Sriperumbudur supplier unit, product and support teams on OMR, and office and yard staff in the port belt. Tamil Nadu then adds its own rules, such as Professional Tax set by the local body and paid every half year, which payroll set up for other states often misses. Plans start at ₹10,000 a month plus GST, less than one in-house HR hire. Companies above about 100 employees, or those wanting software only, are usually better served elsewhere.

01

Three workforces, one payroll

Factory shifts, IT salary structures and port rosters often sit inside the same small company. Each needs different payroll mechanics.

02

Tamil Nadu's own calendar

Half-yearly Professional Tax and a once-a-year Labour Welfare Fund payment are easy to miss when payroll runs on a monthly template.

03

A city that notices paperwork

A wrong payslip or a late relieving letter travels fast through Chennai's tight professional circles.

TAMIL NADU COMPLIANCE

Which labour laws apply to employers in Chennai?

The short answer

Chennai employers follow Tamil Nadu's state laws on top of the central framework. Professional Tax is set by the local body and paid every half year; in Chennai it is nil up to ₹21,000 of half-yearly salary and ₹1,250 above ₹75,000, so at most ₹2,500 a year per employee. The Tamil Nadu Labour Welfare Fund is ₹20 from the employee and ₹40 from the employer once a year, paid before 31 January for employees on the rolls on 31 December. Shops, offices and commercial establishments register under the Tamil Nadu Shops and Establishments Act, 1947 within 30 days of starting, with working hours of 8 a day and 48 a week. Minimum wages are notified separately for each scheduled employment and zone. PF, ESIC, TDS, statutory bonus and the four Labour Codes apply as in every state. HRTailor runs all of these on one calendar.

RuleWhat HRTailor doesKey dates
Professional Tax (Chennai)Deducts the half-yearly slab amount and pays it to the Greater Chennai Corporation, or to the right local body for staff outside the city.Every half year
Tamil Nadu Labour Welfare FundDeducts ₹20 from each employee, adds the ₹40 employer share and pays both to the Tamil Nadu Labour Welfare Board online.Before 31 January
Tamil Nadu Shops and Establishments Act, 1947Registration within 30 days, renewals, changes, registers, leave and working-hour rules for your establishment.When you start and on any change
Open all 365 daysApplies the conditions of G.O. (Rt.) No. 231 if you open every day: a weekly day off on rotation, wages paid into a bank account and the daily and weekly hour limits.Permission extended for three years from 24 August 2026
Minimum wagesChecks every role against the rate for its scheduled employment and zone, plus dearness allowance.On every revision
PF, ESIC, TDS and Labour CodesRuns the central framework on the same compliance calendar with the same team.Monthly and quarterly
Half-yearly salary (Chennai)Professional Tax per half-year
Up to ₹21,000Nil
₹21,001 to ₹30,000₹180
₹30,001 to ₹45,000₹425
₹45,001 to ₹60,000₹930
₹60,001 to ₹75,000₹1,025
Above ₹75,000₹1,250
THE STACK

What does HRTailor do for Chennai businesses?

Four services, one subscription, one accountable team:

01

HR Outsourcing

Appointment letters, induction, attendance, leave, disciplinary process done by the book and clean exits, for workforces that span the office and the shop floor.

02

Payroll Processing

Salary runs that handle factory shift differentials and IT salary structures alike, with Tamil Nadu deductions applied on the state's own cycles.

03

Compliance Management

Tamil Nadu registrations, returns, registers and renewals plus PF, ESIC and TDS, owned end to end by our compliance team.

04

Cloud HRMS

Multi-shift rostering, attendance, employee self-service and a compliance calendar set to Tamil Nadu's deadlines.

CHOOSING A PARTNER

How do you choose an HR or payroll outsourcing company in Chennai?

The short answer

Judge an HR or payroll outsourcing company in Chennai on three things. First, a named HR Manager rather than a ticket queue: ask who will answer your employees' questions. Second, real ownership of Tamil Nadu compliance: ask who pays the half-yearly Professional Tax and the January Labour Welfare Fund, and who is accountable if a deadline is missed. Third, a full price in writing: ask what the invoice looks like in month six, not just month one. Third-party payroll and staffing firms suit companies that want workers placed on someone else's rolls, large payroll processors suit companies with hundreds of employees, and HRMS software suits teams with an experienced HR person. A managed HR firm such as HRTailor suits Chennai startups and SMEs with 5 to 100 employees that keep their own rolls and want the whole function run, from ₹10,000 a month plus GST.

Type of providerBest forWhat you still do yourself
Third-party payroll or staffing firmPutting workers on another company's rollsDay-to-day HR for your own employees
Large payroll processorCompanies with hundreds of employeesHR letters, policies, employee issues
HRMS or payroll softwareTeams with an experienced HR personRunning payroll, filings and employee work
Managed HR (HRTailor)Startups and SMEs with 5 to 100 employeesApprove payroll and make people decisions
PAYROLL

How do payroll outsourcing services in Chennai work?

HRTailor runs end-to-end payroll for Chennai companies with 5 to 100 employees, shift and salaried staff in one run. Every payroll cycle is processed by the 7th of the month.

What is included

  • Monthly salary processing and payslips through the HRMS
  • Professional Tax at the Chennai half-yearly slabs, and the Labour Welfare Fund deduction each January
  • PF and ESIC registration, monthly returns and challans, with PF coverage applied up to the new ₹25,000 monthly wage ceiling (from 17 September 2026)
  • Quarterly TDS returns in Form 138 (formerly Form 24Q) and annual TDS certificates in Form 130 (formerly Form 16)
  • Shift allowances, overtime and night-shift pay for factory, port and support teams
  • Pongal and Diwali bonus, arrears and full and final settlement

How it works, month by month

  1. 1
    Inputs

    Your HR Manager collects attendance, shifts, overtime, leave, joiners and exits from the HRMS.

  2. 2
    Processing

    Salaries are calculated with PF, ESIC, TDS and, in the right months, Professional Tax and Labour Welfare Fund.

  3. 3
    Your approval

    You review one payroll summary. Nothing is paid without your sign-off.

  4. 4
    Payment

    We prepare the bank transfer file and payslips reach employees through the HRMS.

  5. 5
    Filings

    PF, ESIC and TDS returns are filed on time and challans saved for you.

WHERE WE SERVE

Which areas of Chennai do we serve? OMR to Oragadam

One fully online engagement covers every Chennai business district:

OMR & Taramani

The IT corridor: product companies, IT services firms and startups around Tidel Park and the SEZ campuses.

Guindy & Anna Salai

The traditional corporate spine: industrial estates alongside head offices and professional firms.

Ambattur

The older industrial estate, now a mix of manufacturing units and back-office operations.

Sriperumbudur & Oragadam

The automotive and electronics belt, where shift payroll and factory registers set the pace.

Ennore & Manali

Port, freight and logistics operators running round-the-clock office and yard teams.

T. Nagar & Nungambakkam

Retail, healthcare and family businesses moving HR from the owner's desk to a proper system.

We also work with businesses in Velachery, Perungudi, Porur, Tambaram, Sholinganallur, Siruseri and Mahindra World City, and across Tamil Nadu.

INDUSTRY FIT

Which Chennai industries do we work with?

Automotive & Components

Shift scheduling, overtime records, contract labour documentation and apprentice administration for suppliers across the Sriperumbudur-Oragadam corridor.

SaaS & IT Services

Digital onboarding, notice-period management and diligence-ready records for product startups and services firms along OMR.

Ports, Logistics & Trade

Round-the-clock rosters and yard and office payroll in one run for customs-facing and port-facing businesses.

Healthcare & Services

Credential files, nursing shift payroll and grievance processes for hospitals, clinics and service businesses.

CALENDAR

What is the payroll compliance calendar for a Chennai employer?

WhenWhat is dueWho handles it
By the 7th of each monthTDS deducted from salaries in the previous month depositedHRTailor
By the 15th of each monthPF and ESIC contributions and monthly returns for the previous monthHRTailor
Every half yearProfessional Tax paid to the Greater Chennai Corporation or the relevant local bodyHRTailor
Every quarterTDS return on salaries in Form 138 (formerly Form 24Q)HRTailor
Before 31 JanuaryTamil Nadu Labour Welfare Fund for employees on the rolls on 31 DecemberHRTailor
Once a yearTDS certificates in Form 130 (formerly Form 16) and statutory bonusHRTailor

Sources, checked 26 October 2026: Tamil Nadu Shops and Establishments Act, 1947; G.O. (Rt.) No. 231, Labour Welfare and Skill Development Department (365-day opening, extended from 24 August 2026); Tamil Nadu Labour Welfare Board contribution rules; Greater Chennai Corporation Professional Tax slabs; Ministry of Labour and Employment notification S.O. 5109(E) of 17 September 2026 (PF wage ceiling ₹25,000); Income Tax Department form notes for Form 130 and Form 138. More detail: Tamil Nadu labour law compliance guide.

WHY HRTAILOR

Why do Chennai SMEs choose HRTailor?

A named HR Manager

One person who knows your team, not a ticket queue.

Tamil Nadu done right

Half-yearly PT, the January LWF and Shops Act registration on one calendar.

Shift and office together

Factory, port and IT staff in one payroll with the right rules for each.

HRMS included

Self-service for your team, no separate software licence.

5 to 100, one provider

Scale without switching HR partners.

THE MATH, HONESTLY

One HR Manager, or a full HR team for less?

In-house HR Manager

₹8 to 15 LPA

Plus benefits, months of hiring and the risk of a wrong hire. One person, no cover when they are on leave.

vs

HRTailor HR team

₹10,000/month

From, plus GST. A dedicated HR Manager, a team of 5 to 6 and a Cloud HRMS, with no hiring risk.

  • No lock-in beyond your 6-month term
  • Dedicated HR Manager from day one
  • Cancel anytime after the term

Also serving → Tamil Nadu · Coimbatore · Bangalore · Hyderabad

FAQS

What Chennai businesses ask us .

HRTailor plans start at ₹10,000 a month plus GST for a small team, with the Cloud HRMS included. The final price depends on headcount, the number of establishments and whether you need payroll only or a full HR department. Every charge is listed on our pricing page, and you get a written quote after a free call.

Professional Tax in Tamil Nadu is set by the local body and paid every half year, not monthly. In Chennai it is nil up to ₹21,000 of half-yearly salary and rises to ₹1,250 a half-year above ₹75,000. Payroll set up for other states often gets this cycle wrong; ours runs it from the first month.

₹20 from the employee and ₹40 from the employer once a year, for employees on the rolls on 31 December, paid to the Tamil Nadu Labour Welfare Board online before 31 January. HRTailor deducts and pays both shares.

No. Your employees stay on your own rolls. HRTailor runs their payroll, compliance and HR for you as your outsourced HR department, so you keep the employer relationship and we do the work.

No. Chennai clients are served fully online from our Mumbai office: video reviews with your HR Manager, digitally signed documents, and payroll and filings running in the Cloud HRMS with full visibility.

Yes. That mix is common in Chennai. Shift workers and salaried staff run in one payroll with their own rules, one HRMS covers both, and the registers for the factory side stay inspection-ready.

About three weeks: records collected and verified, payroll reconciled against your previous cycle, the HRMS set up and employees moved to self-service. You approve each step as we go.

Let Chennai's work get done while we mind the paperwork .

One conversation, no obligation. See exactly what your HR would look like outsourced.

Free HR consultation - reply in 1 business dayBook a free call

We also serve

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The math, honestly

An in-house HR Manager costs ₹50,000 to ₹80,000 a month + benefits. HRTailor gives you a full HR pod + cloud HRMS from ₹10,000/month - a fraction of the cost, with no hiring risk.

  • No lock-in beyond your 6-month term
  • Dedicated HR Manager from day one
  • Cancel anytime after the term
200+
companies served
Zero
compliance penalties
1 + 5 to 6
dedicated HR manager + team
₹10,000/mo
full HR department, from