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Ecommerce Payroll Services in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: 15 January 2024 Verify Credentials →

EPF and ESI Compliance: EPF (12% employer + 12% employee) and ESI (3.25% + 0.75%) managed for warehouse and fulfilment centre staff

Gig Worker Compliance: Social Security Code 2020: aggregator levy of 1-2% of gig-related turnover; UAN mapping for delivery agents

Seasonal Workforce Payroll: Rapid onboarding payroll for Big Billion Day, Great Indian Festival, and peak sale events with fixed-term benefit tracking

50% Basic Wage Rule: CTC restructuring under Code on Wages 2019 for correct PF/ESI/gratuity calculations across all employee types

500+ ecommerce payroll clients | 10,000+ businesses served | 4.9 star rating | Pan-India multi-state coverage

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Our D2C brand scaled from 20 to 200 employees across 4 warehouse states in one year. Patron handled multi-state PT, EPF/ESI for all locations, seasonal payroll during Diwali, and CTC restructuring for the 50% wage rule. Zero compliance issues.
DO
D2C Brand Owner
Mumbai
★★★★★
2 months ago
We engage 500+ delivery agents as gig workers. The Social Security Code aggregator levy was new territory for us. Patron set up the entire compliance framework, computed the 1-2% levy, and mapped every rider to a UAN.
LP
Logistics Platform CEO
Gurugram
★★★★★
1 month ago
Our quick-commerce dark stores across Bengaluru, Hyderabad and Pune needed state-specific compliance. Patron manages PT, Shops Act, minimum wages, and EPF/ESI for all three states seamlessly. Monthly reports by the 10th.
QC
Quick-Commerce COO
Bengaluru
★★★★★
3 months ago
We hired 3,000 seasonal workers for our annual sale. Patron ran parallel payroll tracks, issued fixed-term contracts under the new IR Code, and processed pro-rata gratuity for workers who completed one year. Incredible turnaround.
MM
Marketplace Manager
Delhi NCR
★★★★★
4 months ago
Income Tax Act 2025 changes caught many companies off guard. Patron updated our Form 24Q templates, recalculated TDS under the new regime, and issued Form 16 in the revised format by June 10 - five days early.
FH
Finance Head
SaaS Ecommerce, Pune
★★★★★
5 months ago

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Ecommerce Payroll Services - Overview

📌 TL;DR - Ecommerce Payroll Services at a Glance

Ecommerce payroll in India covers EPF (12%+12%), ESI (3.25%+0.75%), TDS by 7th monthly, gig worker aggregator levy (1-2% of turnover under Social Security Code 2020), 50% basic wage rule under Code on Wages 2019, and seasonal workforce compliance. Four Labour Codes active since November 2025; Income Tax Act 2025 effective April 1, 2026. Penalty for non-compliance: up to Rs 3,00,000 and 3 years imprisonment. Patron Accounting provides CA-managed ecommerce payroll from Rs 2,999/month.

Ecommerce payroll in India involves managing salary disbursement, statutory compliance, and labour law obligations for a workforce that spans full-time employees, fixed-term staff, gig workers, and seasonal hires. With India's four Labour Codes now active since November 2025 and the Income Tax Act 2025 effective April 1, 2026, ecommerce businesses face the most complex payroll compliance environment in decades.

Unlike traditional employers, ecommerce companies must also address gig worker social security under the Social Security Code, multi-state professional tax compliance across warehouse states, high-volume seasonal hiring payroll, and variable pay structures for performance-linked roles.

Content is reviewed quarterly for accuracy.

What is Ecommerce Payroll?

Ecommerce payroll is the process of calculating, managing, and complying with all salary and statutory obligations for the mixed workforce of an online retail, marketplace, or direct-to-consumer business operating in India - covering full-time employees, gig workers, seasonal staff, and delivery agents under central and state labour laws.

The complexity arises from a layered workforce (permanent tech staff alongside contractual warehouse pickers, third-party delivery agents, and gig riders), seasonal volume spikes (Diwali sales, Republic Day events), and multi-state operations (fulfilment centres in Maharashtra, Karnataka, Telangana, Haryana - each with distinct minimum wages, professional tax rates, and Shops and Establishments Act requirements).

With India's four Labour Codes active since November 2025 and the Income Tax Act 2025 effective April 1, 2026, ecommerce payroll compliance demands specialist CA-managed infrastructure.

Key Terms for Ecommerce Payroll:

  • Code on Wages 2019: Basic pay must be at least 50% of total CTC for PF/ESI/gratuity base; salary by 7th of following month; active November 2025
  • Social Security Code 2020: Gig and platform workers covered; aggregator levy 1-2% of gig turnover capped at 5% of amount paid; EPF/ESI/Gratuity consolidated
  • Income Tax Act 2025: Effective April 1, 2026; replaces IT Act 1961; revised Form 24Q and Form 16 formats; TDS Section 192
  • EPF: 12% employer + 12% employee of basic + DA; mandatory for 20+ employees; deposit by 15th; late interest 12% + damages up to 25%
  • ESI: 3.25% employer + 0.75% employee; workers earning up to Rs 21,000/month; mandatory for 10+ employees; deposit by 15th
  • Fixed-Term Employment: Industrial Relations Code 2020 - gratuity after 1 year (reduced from 5); final wages within 2 working days of exit
EPF Ecommerce Payroll
Industry Specialist Ecommerce Payroll Expert

Who Needs Ecommerce Payroll Services in India

Any business conducting online retail, marketplace operations, or digital-first commerce in India with employees on payroll:

  • D2C brands selling through own websites or social commerce platforms
  • Marketplace sellers on Amazon, Flipkart, Meesho, or Myntra with 10+ employees
  • Quick-commerce and hyperlocal delivery platforms (dark stores, fulfilment hubs)
  • Logistics and last-mile delivery companies employing warehouse pickers and delivery agents
  • Ecommerce technology companies and SaaS platforms
  • Online grocery, food-delivery, and FMCG ecommerce players
  • Social commerce platforms and live-streaming commerce businesses
  • Cross-border ecommerce exporters with India-based fulfilment centres

Our Ecommerce Payroll Services

ServiceWhat We Do
Monthly Payroll ProcessingGross-to-net salary calculation for all employee types; payslips; bank disbursement files; payroll registers; deduction schedules for PF, ESI, TDS, PT, LWF
EPF and ESI ComplianceRegistration (EPFO + ESIC), monthly ECR filing, challan generation and deposit tracking, annual returns, UAN management, ESIC claim support
TDS Management (IT Act 2025)TDS calculation under new and old regimes, monthly deposit by 7th, Form 24Q quarterly, Form 16 by June 15, Section 192 compliance
Gig Worker and Aggregator ComplianceSocial Security Code 2020 aggregator levy (1-2% of gig turnover), UAN mapping for gig workers, platform worker documentation
Seasonal Workforce PayrollRapid onboarding for seasonal hires; pro-rata calculations; fixed-term gratuity (1 year under IR Code); short-tenure benefit tracking
Multi-State ComplianceState-specific PT registration and filing, Shops and Establishments Act, minimum wage verification per state, LWF contributions
Our Process

Ecommerce Payroll Process - 8 Steps

From employee onboarding and CTC design through to annual compliance, our structured process ensures complete EPF, ESI, TDS, and Labour Code compliance for your ecommerce workforce.

Step 1

Employee Data Collection and Onboarding

Collect PAN, Aadhaar, bank details, contracts, work location state, and worker classification. Issue mandatory appointment letters including gig and fixed-term under IR Code, 2020.

All data collected Appointment letters issued
Onboarded01
Step 2

CTC Structure Review and 50% Wage Rule

Verify basic pay constitutes at least 50% of CTC under Code on Wages. Design allowance structure within legal limits. Record tax regime choice for TDS.

CTC restructured 50% rule verified
CTC Compliant02
Step 3

Attendance and Variable Pay Integration

Compile attendance, LOP, overtime, delivery incentives, shift differentials for night-shift warehouse staff. Pro-rate for mid-month joiners/exits.

Attendance compiled Variables integrated
Data Ready03
Step 4

Gross-to-Net Payroll Calculation

Calculate gross pay; deduct EPF 12%, ESI 0.75%, PT (state-specific), TDS (based on projected annual income and regime), LWF. Arrive at net take-home.

Net pay calculated All deductions applied
Payroll Computed04
Step 5

Gig Worker Levy and Statutory Contributions

Compute employer EPF 12%, ESI 3.25%, gratuity provision, LWF. For gig workers: aggregator levy 1-2% of gig platform turnover per Social Security Code.

Employer contributions set Gig levy computed
SSC1-2%
Levy Done05
Step 6

Payslip Generation and Salary Disbursement

Generate itemised digital payslips showing all earnings, deductions, employer contributions. Bank transfers by 7th per Code on Wages mandate.

Payslips generated Salary by 7th
PAY
Paid06
Step 7

Statutory Filing and Deposit

TDS by 7th, EPF/ESI by 15th. ECR filed monthly with EPFO. ESI return (Form 6) within 15 days post-quarter. Form 24Q quarterly. Digital registers per OSH Code.

TDS/EPF/ESI deposited ECR and returns filed
Filed07
Step 8

Annual Compliance

Form 16 by June 15 under IT Act 2025. Annual EPF/ESI returns. PT annual returns. Bonus calculation (8.33-20% for 20+ employees). Gratuity provision and audit.

Form 16 issued Annual returns filed
Year Complete08

Documents and Information Required

Employee Onboarding

  • PAN card, Aadhaar card, bank account details (IFSC + account number), appointment letter, employment contract, work location state, tax regime declaration

Employer Registrations

  • PAN, TAN, EPF employer code, ESIC code, professional tax certificate (each applicable state), Shops and Establishments certificate

Salary and Attendance

  • CTC offer letter, allowance break-up, variable pay policy, overtime/night-shift differential policy
  • Monthly attendance register (digital), LOP days, overtime hours, leave balance, late-coming records

Previous Payroll Data

  • Year-to-date salary statement, TDS deposited to date, Form 26AS/AIS data, previous Form 16 (mid-year joiners)

Statutory Credentials

  • EPFO login, ESIC portal login, TRACES login for TDS, state PT portal credentials

Gig Worker Data (if applicable)

  • Platform engagement contracts, UAN details, work orders, payment records, classification as gig vs contractor vs employee

Key Ecommerce Payroll Challenges and Solutions

ChallengeImpactHow Patron Accounting Solves It
Gig worker compliance under Social Security Code 2020Delivery agents trigger aggregator levy (1-2% of gig turnover); UAN mapping mandatoryCompute and remit aggregator contribution, map each gig worker to UAN, set up digital tracking
Seasonal surge payroll for peak sale eventsThousands of temporary workers onboarded for Diwali/Republic Day; short-tenure payroll with pro-rata benefitsParallel payroll tracks for permanent and seasonal; rapid onboarding workflows; pro-rata gratuity under 1-year eligibility
Multi-state PT and minimum wage complianceFulfilment centres across 6-10 states with different PT rates, minimum wages, and Shops Act requirementsState-specific compliance calendar; PT registration and filing in each state; minimum wage verification per role
50% basic wage restructuring under Code on WagesLow-basic CTC designs now violate 50% basic pay rule; retrospective EPFO demands riskAudit existing CTC; model revised structures; calculate incremental PF impact; implement with employee communication

Ecommerce Payroll Service Fees 2026

Fee ComponentAmount
Patron Accounting Professional FeesStarting from INR 149 per employee (Exl GST and Govt. Charges)
Starter (Up to 25 employees)Rs 2,999/month (payroll processing, payslips, EPF/ESI filing, TDS management, basic monthly reports)
Growth (26-100 employees)Rs 6,999/month (All Starter + multi-state PT, variable pay, Form 24Q, employee portal)
Scale (101-500 employees)Rs 14,999/month (All Growth + gig worker compliance, seasonal payroll, CTC restructuring, LWF)
Enterprise (500+ or multi-entity)Custom quote (dedicated CA team, HRMS integration, real-time dashboards, full audit support)
Gig Worker Compliance Add-onRs 1,500/month (aggregator levy computation + UAN mapping; available for Starter and Growth plans)

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Ecommerce Payroll consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Compliance Deadlines for Ecommerce Payroll 2026

StageEstimated Timeline
April 1, 2026Income Tax Act 2025 in effect - update payroll systems for new TDS formats, Form 24Q, Form 16
7th of each monthSalary disbursement + TDS deposit with IT Department (Rs 200/day + 1.5%/month interest for delay)
15th of each monthEPF + ESI contributions (EPF: 12% interest + damages up to 25% for delay)
July 31Form 24Q for Q1 (April-June) TDS return
October 31Form 24Q for Q2 (July-September)
January 31Form 24Q for Q3 (October-December)
May 31Form 24Q for Q4 (January-March)
June 15Issue Form 16 to all employees under Income Tax Act 2025 (Rs 100/day per certificate delayed)

Critical: All four Labour Codes active since November 21, 2025. Income Tax Act 2025 effective April 1, 2026 with revised Form 24Q and Form 16 formats. EPF non-payment carries penalty up to Rs 3,00,000 and 3 years imprisonment. Code on Wages violations: up to Rs 50,000 (first offence) / Rs 1,00,000 (repeat). Patron Accounting manages all deadline calendars with advance alerts.

Key Benefits

Benefits of Outsourcing Ecommerce Payroll to Patron

Labour Code 2025 Compliance

All four codes handled from day one: Wages, Social Security, IR, OSH. No retrospective liability for gig worker or CTC structure gaps.

Penalty Prevention

Avoid EPF damages (up to 25%), TDS late fees (Rs 200/day + 1.5%/month), and Code on Wages violations (up to Rs 50,000).

Seasonal Scale Without Risk

Rapid payroll onboarding for 100-5,000 seasonal workers with statutory compliance; clean post-peak offboarding.

Multi-State Expertise

PT filings across all warehouse states; minimum wage verification; Shops Act compliance in each location.

Gig Workforce Risk Management

Social Security Code aggregator levy tracked and remitted; UAN mapping for all gig workers; zero misclassification exposure.

Audit-Ready Under OSH Code

Fully digitised payroll registers and records; clean audit trail for EPFO, ESIC, and income tax inspections.

What Our Ecommerce Clients Say

500+ ecommerce payroll clients | 10,000+ businesses served | 15+ years experience | 50,000+ payroll documents filed annually | 4.9 stars (500+ reviews) | Offices: Gurugram, Mumbai, Pune, Bengaluru | 99.9% on-time filing record

New Labour Codes Impact on Ecommerce Payroll (2026)

Labour CodeKey ChangeEcommerce Impact
Code on Wages, 2019Basic pay must be at least 50% of total CTC; salary by 7th of following monthCTC restructuring required; affects PF, ESI, gratuity calculation base for all employees
Social Security Code, 2020Gig and platform workers included; aggregator levy 1-2% of gig turnoverDelivery platforms and marketplace aggregators now liable for gig worker social security
Industrial Relations Code, 2020Fixed-term employment formalised; gratuity after 1 year; final wages within 2 working daysSeasonal hires get gratuity after 1 year; exit payroll must be processed in 2 days
OSH Code, 2020Digital registers mandatory; web-based inspections; health check for employees above 40Ecommerce must digitise all payroll records; no paper registers accepted
Income Tax Act 2025Effective April 1, 2026; replaces IT Act 1961; revised Form 24Q and Form 16Payroll systems must be updated for new TDS formats; Form 16 under revised Act by June 15, 2026

Related Services for Ecommerce Businesses

Patron Accounting also provides these services for ecommerce businesses:

Legal Framework for Ecommerce Payroll in India

Act / CodeKey ProvisionEcommerce Relevance
Code on Wages, 2019Basic wages = at least 50% of total remuneration; salary by 7th; penalty up to Rs 50,000 (first offence) / Rs 1,00,000 (repeat)All ecommerce employers must restructure CTC; meet salary deadline
Social Security Code, 2020EPF + ESI + Gratuity consolidated; gig/platform workers included; aggregator levy 1-2% of gig turnover capped at 5% of amount paidDelivery platforms, marketplace aggregators, quick-commerce companies
Income Tax Act 2025Effective April 1, 2026; Section 192 TDS on salary; Form 24Q and Form 16 revised; late TDS penalty Rs 200/day under Section 234EAll employers from April 2026; new format compliance
Industrial Relations Code, 2020Fixed-term employment; gratuity after 1 year; final wages within 2 working days; digital registersSeasonal hires, fixed-term warehouse staff
OSH Code, 2020Digital payroll registers; web-based inspections; health check for employees above 40; creche for 50+ establishmentsFulfilment centres, warehouse operations
EPF Act, 1952 (under SSC)12% employer + 12% employee; deposit by 15th; late interest 12% + damages up to 25%; penalty up to Rs 3,00,000 + 3 years imprisonmentAll ecommerce with 20+ employees
ESI Act, 1948 (under SSC)3.25% employer + 0.75% employee; workers up to Rs 21,000/month; deposit by 15thWarehouse pickers, delivery staff, support below Rs 21,000

Frequently Asked Questions - Ecommerce Payroll

Get answers about EPF/ESI rates, gig worker compliance, 50% basic pay rule, seasonal workforce payroll, TDS deadlines, and Labour Code 2025 impact on ecommerce.

Quick Answers

What is EPF contribution for ecommerce employers?
12% of basic + DA (employer) + 12% (employee); deposit by 15th; mandatory for 20+ employees.

What is gig worker aggregator levy?
1-2% of gig-related annual turnover; capped at 5% of amount paid to gig workers; Social Security Code, 2020.

When does Income Tax Act 2025 affect payroll?
Effective April 1, 2026; Form 24Q and Form 16 formats revised; TDS calculation may change under new Act provisions.

The 50% Basic Pay Rule - CTC Restructuring for Ecommerce

Under the Code on Wages 2019, basic pay must be at least 50% of total CTC. This directly affects PF, ESI, and gratuity calculations for every ecommerce employee:

  • Ecommerce companies with basic pay below 50% of CTC must restructure salary components immediately
  • Revised CTC structure increases employer PF contribution by approximately 8-12% for affected employees
  • Gratuity eligibility under revised wage definition may accelerate liability for large fulfilment centre workforces
  • Failure to restructure risks retrospective EPFO demands with 12% interest and damages up to 25%
  • Payroll systems must recalculate PF and ESI on the revised wages definition automatically

Need CTC restructuring support? Call +91 945 945 6700 or WhatsApp us for a free compliance review.

Start Your Ecommerce Payroll Compliance Today

Ecommerce payroll in India has entered its most demanding compliance era. The convergence of four Labour Codes (active November 2025), the Social Security Code's gig worker aggregator framework, and the Income Tax Act 2025 (effective April 1, 2026) means ecommerce businesses with informal payroll processes face material penalty and regulatory risk.

From the 50% basic wage rule affecting every employee's CTC, to the 1-2% aggregator levy for every gig delivery partner, to seasonal workforce fixed-term benefit eligibility - the compliance landscape demands specialist CA-managed payroll infrastructure.

500+ ecommerce clients | 10,000+ businesses served | 15+ years | Starting from Rs 2,999/month | Pan-India multi-state coverage

Book a Free Consultation - No Obligation.

Ecommerce Payroll Services Across India

Patron Accounting provides multi-state ecommerce payroll, EPF, ESI, and Labour Code compliance across all major Indian cities.

Content Created: 15 January 2024  |  Last Updated: 15 January 2024  |  Next Review: October 2026  |  Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed every 6 months (April and October) aligned to Budget and Labour Code updates. Next review: October 2026. Key legislation: Code on Wages 2019, Social Security Code 2020, Income Tax Act 2025.

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