HR Outsourcing
Offers, onboarding, attendance, leave, grievances and exits, built for a market where people move fast.
HRTailor runs HR and payroll for Karnataka startups and SMEs with 5 to 100 employees, from Bengaluru to Mysuru, Mangaluru and Hubballi. A dedicated HR Manager, a small HR team and a Cloud HRMS handle payroll, PF, ESIC, Karnataka Professional Tax, the Labour Welfare Fund, shop registration, onboarding and exits, fully online, from ₹10,000 a month.
HR outsourcing means a specialist firm runs your people processes for a fixed monthly fee. For a Karnataka 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, Karnataka Professional Tax, the Labour Welfare Fund once you reach 50 workers, registration under the Karnataka Shops and Commercial Establishments Act, offer letters, attendance, leave, exits and employee queries. Karnataka business is lopsided: Bengaluru carries the software, startup and capability-centre economy, while Mysuru, Mangaluru, Hubballi and Belagavi run manufacturing, ports, education and trading. A Bengaluru team that loses people every quarter and a Mysuru plant with steady shifts need different HR, but the same state rules. Plans start at ₹10,000 a month plus GST. Companies above about 100 employees, or those wanting software only, are usually better served elsewhere.
Bengaluru attrition means exits, notice periods and settlements run every month.
Karnataka's 2026 minimum wages are among the highest in India and change pay structures.
Bengaluru, Mysuru and Mangaluru teams follow the same state laws on one payroll.
Karnataka employers follow the same state rules in every city. Professional Tax is ₹200 a month on salaries of ₹25,000 and above, ₹300 in February, paid by the 20th of the following month, so at most ₹2,500 a year; salaries below ₹25,000 pay nil. Shops and offices register under the Karnataka Shops and Commercial Establishments Act, 1961 within 30 days of starting, and since a September 2026 amendment the registration lasts until the business closes, with working hours of up to 9 a day and 48 a week. The Karnataka Labour Welfare Fund is ₹50 from the employee and ₹100 from the employer once a year, due 15 January, but it applies only to shops and commercial establishments with 50 or more workers. Minimum wages for shops and establishments are set by zone, from ₹24,407.23 a month for unskilled staff in Bengaluru including the 2026-27 dearness allowance. PF, ESIC, TDS and the four Labour Codes apply as in every state.
| Rule | What HRTailor does | Key dates |
|---|---|---|
| Karnataka Professional Tax | Enrols the company, deducts ₹200 a month (₹300 in February) from salaries of ₹25,000 and above and pays it. | By the 20th of the following month |
| Karnataka Labour Welfare Fund | Checks whether you have reached 50 workers, then deducts ₹50 per employee, adds ₹100 and pays online. | 15 January |
| Karnataka Shops and Commercial Establishments Act, 1961 | Registration for each premises, changes, registers and leave rules. Separate from the municipal trade licence. | Within 30 days of starting |
| Festival holidays | Builds the holidays required by the Karnataka National and Festival Holidays Act into the HRMS leave calendar. | Every calendar year |
| Minimum wages by zone | Checks every role against its zone and grade plus the ₹1,030.80 dearness allowance for 2026-27. See the minimum wage update. | On every revision |
| PF, ESIC, TDS and Labour Codes | Runs the central framework on one compliance calendar with one team. | Monthly and quarterly |
| Rule | Current position in Karnataka | Law |
|---|---|---|
| Professional Tax | Nil below ₹25,000 a month; ₹200 a month at ₹25,000 and above, ₹300 in February. Paid by the 20th of the following month. | Karnataka Tax on Professions Act, 1976 |
| Labour Welfare Fund | ₹50 from the employee and ₹100 from the employer once a year, due 15 January, for shops and commercial establishments with 50 or more workers. | Notification of 10 January 2025 |
| Shops Act registration | Apply within 30 days of starting. Since the 2026 amendment the registration stays valid until the business closes, with no renewal. | Shops and Commercial Establishments Act, 1961, as amended in 2026 |
| Working hours | Up to 9 hours a day and 48 hours a week, with overtime at twice the wage rate. | Same Act |
| Gratuity | After 5 years of continuous service (1 year for fixed-term employees, pro rata), 15 days' wages for each year. | Code on Social Security, 2020, from 21 Nov 2025 |
| Shops and establishments, per month | Zone 1 (Bengaluru) | Zone 2 (city corporations) |
|---|---|---|
| Unskilled | ₹24,407.23 | ₹22,282.10 |
| Semi-skilled | ₹26,744.87 | ₹24,407.23 |
| Skilled | ₹29,316.27 | ₹26,744.87 |
| Highly skilled | ₹32,144.82 | ₹29,316.27 |
Minimum wages shown are the basic rate plus the ₹1,030.80 dearness allowance for 2026-27, under the notification of 22 May 2026, which is under challenge in court (interim relief refused). Zone 1 is the Greater Bengaluru Authority area; Zone 2 covers other city corporations such as Mysuru.
Four services, one subscription, one accountable team:
Offers, onboarding, attendance, leave, grievances and exits, built for a market where people move fast.
Monthly salaries with Karnataka PT, LWF and zone-wise minimum wage checks applied.
Shop registrations, PT, LWF, PF, ESIC and TDS on one calendar.
Attendance, leave, documents and self-service for office, plant and remote teams.
Choose an HR outsourcing company in Karnataka on three things. First, a named HR Manager rather than a ticket queue: ask who will answer your employees' questions and handle exits. Second, current Karnataka knowledge: ask whether they apply the 2026-27 minimum wages with the dearness allowance, who checks whether the Labour Welfare Fund applies once you reach 50 workers, and who registers each new office. A provider still using the old minimum wage table is working from an old template. Third, a full price in writing: ask what the invoice looks like in month six, not month one. Large staffing and payroll firms suit companies with hundreds of employees, and HRMS software suits teams with an experienced HR person. A managed HR firm such as HRTailor suits Karnataka startups and SMEs with 5 to 100 employees that want the whole function run, from ₹10,000 a month plus GST.
| Type of provider | Best for | What you still do yourself |
|---|---|---|
| Large staffing or payroll firm | Companies with hundreds of employees | HR letters, policies, employee issues |
| HRMS or payroll software | Teams with an experienced HR person | Running payroll, filings and employee work |
| Third-party payroll firm | Putting workers on another company's rolls | Day-to-day HR for your own employees |
| Managed HR (HRTailor) | SMEs with 5 to 100 employees | Approve payroll and make people decisions |
HRTailor runs end-to-end payroll for Karnataka companies with 5 to 100 employees. Every payroll cycle is processed by the 7th of the month.
Your HR Manager collects attendance, leave, joiners, exits and pay changes from the HRMS.
Salaries are calculated with PF, ESIC, Professional Tax and TDS, plus the Labour Welfare Fund where it applies.
You review one payroll summary. Nothing is paid without your sign-off.
We prepare the bank transfer file and payslips reach employees through the HRMS.
PF, ESIC, Professional Tax and TDS are paid and filed on time, with challans saved for you.
One engagement covers every Karnataka city. Each city has its own page with local detail:
Software, startups and capability centres from Whitefield to Electronic City.
IT campuses, manufacturing in Hebbal and Hootagalli, education and tourism.
Ports, banking, education and healthcare along the coast.
Trading, logistics and a growing engineering base.
Foundries, aerospace suppliers and engineering units.
Industrial corridors and warehousing near Bengaluru.
We also work with businesses in Kalaburagi, Ballari, Shivamogga, Davanagere and across Karnataka.
IT, SaaS & GCCs
Fast onboarding and clean exits for teams that move often.
Manufacturing & Engineering
Shift payroll, factory registers and contract labour records.
Healthcare & Education
Multi-site staff, shift rosters and audit-ready records.
Trading & Logistics
Field and warehouse teams on one payroll.
| When | What is due | Who handles it |
|---|---|---|
| By the 7th of each month | TDS deducted from salaries in the previous month deposited | HRTailor |
| By the 15th of each month | PF and ESIC contributions and monthly returns for the previous month | HRTailor |
| By the 20th of each month | Karnataka Professional Tax for the previous month | HRTailor |
| 15 January | Karnataka Labour Welfare Fund, for establishments with 50 or more workers | HRTailor |
| Every calendar year | Festival holiday list built into the HRMS | HRTailor |
| Every quarter | TDS return on salaries in Form 138 (formerly Form 24Q) | HRTailor |
| Once a year | TDS certificates in Form 130 (formerly Form 16) and statutory bonus | HRTailor |
Sources, checked 27 October 2026: Karnataka Shops and Commercial Establishments Act, 1961, section 4, as amended by the Karnataka Shops and Commercial Establishments (Amendment) Act, 2026 (registration valid until closure); Karnataka Labour Welfare Fund Notification DPAL 60 SHASANA 2024 (10 January 2025); Karnataka minimum wage Notification KaE 411 LWA 2023 dated 22 May 2026 (under challenge in WP 16145/2026, interim relief refused) and the 2026-27 dearness allowance; Karnataka Act 22 of 2026 (Professional Tax returns); Code on Social Security, 2020, section 53; 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: Karnataka labour law compliance guide.
One person for every Karnataka site, not a ticket queue.
2026-27 wages and dearness allowance applied from the right month.
Notice periods, settlements and letters on time.
Self-service for your team, no separate licence.
Grow across Karnataka without switching partners.
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.
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.
Also serving → Bengaluru · Karnataka labour law guide · Tamil Nadu
HRTailor plans start at ₹10,000 a month plus GST for a small team, with the Cloud HRMS included. The price scales with headcount, not with the number of Karnataka cities. Every charge is listed on our pricing page.
Nil below ₹25,000 a month, and ₹200 a month at ₹25,000 and above, with ₹300 in February, so at most ₹2,500 a year. The employer pays it by the 20th of the following month.
For shops and commercial establishments, only once you have 50 or more workers. Then it is ₹50 from the employee and ₹100 from the employer once a year, due 15 January.
For shops and establishments in Bengaluru, from ₹24,407.23 a month for unskilled staff including the ₹1,030.80 dearness allowance for 2026-27. Other city corporations such as Mysuru start at ₹22,282.10.
Not any more. Since a September 2026 amendment to the Shops and Commercial Establishments Act, a registration stays valid until the business closes. Each new premises still registers within 30 days of starting.
Karnataka clients are served fully online from our Mumbai office: video calls, digitally signed documents and a Cloud HRMS cover everything a local visit would.
Our Karnataka labour law compliance guide covers the Labour Code rules, leave, working hours, PT, LWF and minimum wages in depth.
Tell us where your Karnataka team works. We will show you the HR setup it needs.
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.
