HR Outsourcing
Appointment letters, attendance, leave and exits for plant and office staff alike.
HRTailor runs HR and payroll for Tamil Nadu SMEs with 5 to 100 employees, from Chennai to Coimbatore, Madurai, Tiruppur and Hosur. A dedicated HR Manager, a small HR team and a Cloud HRMS handle payroll, PF, ESIC, half-yearly 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 Tamil Nadu 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 for each local body, the Tamil Nadu Labour Welfare Fund, registration under the Tamil Nadu Shops and Establishments Act, offer letters, attendance, leave, exits and employee queries. Tamil Nadu has more factories than any other state, and they sit next to a software and services industry: auto and electronics in Chennai and Sriperumbudur, textiles in Tiruppur and Coimbatore, engineering in Hosur, trade and healthcare in Madurai. A shop-floor payroll and an IT payroll often run in the same company. Plans start at ₹10,000 a month plus GST. Companies above about 100 employees, or those wanting software only, are usually better served elsewhere.
Each corporation or municipality collects Professional Tax every half year at its own slabs.
Plants and offices follow different rules but often share one payroll.
Shops opening every day must follow the conditions of a 2026 government order.
Tamil Nadu employers follow the same state laws in every city, with one twist: Professional Tax belongs to the local body. Each corporation or municipality collects it every half year at its own slabs, never more than ₹2,500 a year per employee; in Chennai it is nil up to ₹21,000 of half-yearly salary and ₹1,250 above ₹75,000. The Tamil Nadu Labour Welfare Fund is ₹20 from the employee and ₹40 from the employer once a year, for employees on the rolls on 31 December, paid online before 31 January. 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, and may open all 365 days under a permission extended from 24 August 2026. Minimum wages are notified for each scheduled employment and zone. PF, ESIC, TDS and the four Labour Codes apply as in every state.
| Rule | What HRTailor does | Key dates |
|---|---|---|
| Professional Tax | Deducts the half-yearly amount set by each corporation or local body and pays it on time. | Every half year |
| Tamil Nadu Labour Welfare Fund | Deducts ₹20 per employee, adds the ₹40 employer share and pays the Tamil Nadu Labour Welfare Board online. | Before 31 January |
| Tamil Nadu Shops and Establishments Act, 1947 | Registration within 30 days, renewals, registers, leave and working-hour rules for offices and shops. | Within 30 days of starting |
| Open all 365 days | Applies the conditions of G.O. (Rt.) No. 231: a weekly day off on rotation, wages into a bank account and the hour limits. | Permission extended from 24 August 2026 |
| Factory units | Factory registers, shift and overtime records and contract labour documents for plants across the state. | Monthly |
| PF, ESIC, TDS and Labour Codes | Runs the central framework on one compliance calendar with one team. | Monthly and quarterly |
| Rule | Current position in Tamil Nadu | Law |
|---|---|---|
| Professional Tax | Set by each local body, paid every half year, at most ₹2,500 a year per employee. | Local body Professional Tax rules |
| Labour Welfare Fund | ₹20 from the employee and ₹40 from the employer once a year, for staff on the rolls on 31 December, paid online before 31 January. | Labour Welfare Fund Act, 1972; G.O. 161 of 2 December 2022 |
| Shops Act registration | Register within 30 days of starting. | Shops and Establishments Act, 1947 |
| Working hours | 8 hours a day and 48 a week; with overtime, at most 10 hours a day and 54 a week, paid at twice the wage rate. | Same Act, sections 9, 14 and 31 |
| Leave | 12 days earned leave after 12 months of service, accumulating to 45 days; 12 days sick leave and 12 days casual leave a year. | Same Act, section 25 |
| 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 |
| Half-yearly salary | Professional Tax per half-year |
|---|---|
| Up to ₹21,000 | Nil |
| ₹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 |
Chennai slabs shown; other corporations and municipalities set their own, so we confirm the slab with each local body before the first deduction.
Four services, one subscription, one accountable team:
Appointment letters, attendance, leave and exits for plant and office staff alike.
Salaries and wages with PT for each local body, LWF and statutory bonus applied.
Shop registrations, half-yearly PT, LWF, PF, ESIC and TDS on one calendar.
Attendance, leave, documents and self-service for factories, offices and field teams.
Choose an HR outsourcing company in Tamil Nadu on three things. First, a named HR Manager rather than a ticket queue: ask who will answer your employees' questions across all your sites. Second, real ownership of Tamil Nadu compliance: ask who pays Professional Tax to each corporation every half year, who files the Labour Welfare Fund before 31 January, and who registers each premises under the 1947 Act. A provider that deducts Professional Tax every month like a Maharashtra payroll is working from the wrong 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, per-employee payroll processors suit companies that only want salaries calculated, and HRMS software suits teams with an experienced HR person. A managed HR firm such as HRTailor suits Tamil Nadu SMEs with 5 to 100 employees, 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 |
| Per-employee payroll processor | Calculating salaries only | Registrations, letters, employee issues, exits |
| HRMS or payroll software | Teams with an experienced HR person | Running payroll, filings and employee work |
| Managed HR (HRTailor) | SMEs with 5 to 100 employees | Approve payroll and make people decisions |
HRTailor runs end-to-end payroll for Tamil Nadu 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 and TDS, with Professional Tax and the Labour Welfare Fund in the right months.
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 Tamil Nadu city. Each city has its own page with local detail:
IT, auto, electronics and services from OMR to Sriperumbudur.
Pumps, motors, textiles and a growing IT base.
Trade, healthcare, education and agro-processing.
Knitwear exporters with large piece-rate and shift workforces.
Two-wheeler, electronics and engineering plants near Bengaluru.
Engineering, fabrication and steel-linked units.
We also work with businesses in Vellore, Erode, Tirunelveli, Thoothukudi and across Tamil Nadu.
Auto & Electronics
Shift payroll, factory registers and contract labour records.
Textiles & Garments
Piece-rate and daily-wage payroll with inspection-ready registers.
IT & Services
Offer-to-exit process for Chennai and Coimbatore teams.
Healthcare & Retail
Multi-site staff and 365-day rosters with the right weekly offs.
| 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 |
| Every half year | Professional Tax paid to each corporation or local body | HRTailor |
| Before 31 January | Tamil Nadu Labour Welfare Fund for employees on the rolls on 31 December | 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: Tamil Nadu Shops and Establishments Act, 1947, sections 9, 14, 25 and 31; 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 rates (G.O. 161, 2 December 2022); Greater Chennai Corporation Professional Tax slabs; 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: Tamil Nadu labour law compliance guide.
One person for every Tamil Nadu site, not a ticket queue.
Each corporation paid on its own half-yearly cycle.
Shop-floor and office payroll in one run.
Self-service for your team, no separate licence.
Grow across Tamil Nadu 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 → Chennai · Tamil Nadu labour law guide · Karnataka
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 Tamil Nadu sites. Every charge is listed on our pricing page.
Every half year, to the corporation or local body where the employee works, at that body's slabs, never more than ₹2,500 a year per employee. In Chennai it is nil up to ₹21,000 of half-yearly salary.
Once a year: ₹20 from the employee and ₹40 from the employer for staff on the rolls on 31 December, paid online before 31 January.
Yes, under a government order extended from 24 August 2026, if every worker gets a weekly day off on rotation, wages go into a bank account and the hour limits are respected. Women work after 8 pm only with consent and transport.
Gratuity follows the central Code on Social Security, 2020: after 5 years of continuous service, or after 1 year for fixed-term employees, at 15 days' wages for each year.
Tamil Nadu 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 Tamil Nadu labour law compliance guide covers the Labour Code rules, leave, working hours, PT and LWF in depth.
Tell us where your Tamil Nadu 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.
