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Updated 26 October 2026 · Reviewed by Abhijit Divekar, HRTailor
📍 Tamil Nadu, India HR AND PAYROLL OUTSOURCING, TAMIL NADU

HR and Payroll Outsourcing in Tamil Nadu

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.

HRTailor HR outsourcing team for Tamil Nadu 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 across Tamil NaduRun 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 TAMIL NADU

What is HR outsourcing, and why do Tamil Nadu companies use it?

In short

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.

01

PT by local body

Each corporation or municipality collects Professional Tax every half year at its own slabs.

02

Factory and office together

Plants and offices follow different rules but often share one payroll.

03

Open all 365 days

Shops opening every day must follow the conditions of a 2026 government order.

TAMIL NADU COMPLIANCE

Which Tamil Nadu compliance does HRTailor handle for you?

The short answer

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.

RuleWhat HRTailor doesKey dates
Professional TaxDeducts the half-yearly amount set by each corporation or local body and pays it on time.Every half year
Tamil Nadu Labour Welfare FundDeducts ₹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, 1947Registration within 30 days, renewals, registers, leave and working-hour rules for offices and shops.Within 30 days of starting
Open all 365 daysApplies 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 unitsFactory registers, shift and overtime records and contract labour documents for plants across the state.Monthly
PF, ESIC, TDS and Labour CodesRuns the central framework on one compliance calendar with one team.Monthly and quarterly

Tamil Nadu employer rules at a glance

RuleCurrent position in Tamil NaduLaw
Professional TaxSet 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 registrationRegister within 30 days of starting.Shops and Establishments Act, 1947
Working hours8 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
Leave12 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
GratuityAfter 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

Professional Tax in Chennai (Greater Chennai Corporation)

Half-yearly salaryProfessional 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

Chennai slabs shown; other corporations and municipalities set their own, so we confirm the slab with each local body before the first deduction.

THE STACK

What does HRTailor do for Tamil Nadu businesses?

Four services, one subscription, one accountable team:

01

HR Outsourcing

Appointment letters, attendance, leave and exits for plant and office staff alike.

02

Payroll Processing

Salaries and wages with PT for each local body, LWF and statutory bonus applied.

03

Compliance Management

Shop registrations, half-yearly PT, LWF, PF, ESIC and TDS on one calendar.

04

Cloud HRMS

Attendance, leave, documents and self-service for factories, offices and field teams.

CHOOSING A PARTNER

How do you choose an HR outsourcing company in Tamil Nadu?

The short answer

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 providerBest forWhat you still do yourself
Large staffing or payroll firmCompanies with hundreds of employeesHR letters, policies, employee issues
Per-employee payroll processorCalculating salaries onlyRegistrations, letters, employee issues, exits
HRMS or payroll softwareTeams with an experienced HR personRunning payroll, filings and employee work
Managed HR (HRTailor)SMEs with 5 to 100 employeesApprove payroll and make people decisions
PAYROLL

How does payroll outsourcing in Tamil Nadu work?

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.

What is included

  • Monthly salary and wage processing with payslips through the HRMS
  • Professional Tax for each corporation or local body every half year, and the Labour Welfare Fund before 31 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)
  • One consolidated payroll for plants and offices across Tamil Nadu
  • Deepavali and Pongal bonus, arrears and full and final settlement

How it works, month by month

  1. 1
    Inputs

    Your HR Manager collects attendance, leave, joiners, exits and pay changes from the HRMS.

  2. 2
    Processing

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

  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, Professional Tax and TDS are paid and filed on time, with challans saved for you.

WHERE WE SERVE

Which Tamil Nadu cities do we serve? Chennai to Madurai

One engagement covers every Tamil Nadu city. Each city has its own page with local detail:

Chennai

IT, auto, electronics and services from OMR to Sriperumbudur.

Coimbatore

Pumps, motors, textiles and a growing IT base.

Madurai

Trade, healthcare, education and agro-processing.

Tiruppur

Knitwear exporters with large piece-rate and shift workforces.

Hosur & Krishnagiri

Two-wheeler, electronics and engineering plants near Bengaluru.

Tiruchirappalli & Salem

Engineering, fabrication and steel-linked units.

We also work with businesses in Vellore, Erode, Tirunelveli, Thoothukudi and across Tamil Nadu.

INDUSTRY FIT

Which Tamil Nadu industries do we work with?

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.

CALENDAR

What is the payroll compliance calendar for a Tamil Nadu 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 each corporation or local bodyHRTailor
Before 31 JanuaryTamil Nadu Labour Welfare Fund for employees on the rolls on 31 DecemberHRTailor
Every quarterTDS return on salaries in Form 138 (formerly Form 24Q)HRTailor
Once a yearTDS certificates in Form 130 (formerly Form 16) and statutory bonusHRTailor

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.

WHY HRTAILOR

Why do Tamil Nadu SMEs choose HRTailor?

A named HR Manager

One person for every Tamil Nadu site, not a ticket queue.

Local body PT handled

Each corporation paid on its own half-yearly cycle.

Plant and office together

Shop-floor and office payroll in one run.

HRMS included

Self-service for your team, no separate licence.

5 to 100, one provider

Grow across Tamil Nadu without switching 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 → Chennai · Tamil Nadu labour law guide · Karnataka

FAQS

Tamil Nadu employers usually ask these .

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.

Tamil Nadu builds things. Build your HR properly .

Tell us where your Tamil Nadu team works. We will show you the HR setup it needs.

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