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Payroll Outsourcing in Bengaluru, Built on Karnataka's Rulebook

Hiring in Bengaluru adds a Karnataka layer on top of central payroll law: professional tax of ₹200 a month on salaries of ₹25,000 and above (₹300 in February), remitted by the 20th through the e-Prerana portal, labour welfare fund at ₹50 from the employee and ₹100 from the employer each January, and shops and establishments registration on e-Karmika. As of September 2026 we run all of it, plus TDS, PF and ESIC, for teams employed on our own Bengaluru entity.

Karnataka PT of ₹200 a month via e-Prerana, LWF each January, e-Karmika registration, plus TDS, PF and ESIC. We run the whole Bengaluru stack on our local entity.

Speak to sales EOR vs entity, in detail

G2 4.8 / 5 on G2, from companies employing teams in India through us.

Teams building in India. First hire to full team.

Learning Karnataka's payroll layer yourself versus using our Bengaluru desk.

Six Karnataka-specific burdens sit on top of central payroll law. Here is who carries each one.

Karnataka layer on you

Karnataka layer on us

Karnataka professional tax
You track the slab (nil below ₹25,000, ₹200 at or above, ₹300 in February as of 2026), enrol on e-Prerana within 30 days and remit by the 20th monthly.
Our desk holds the PTRC, works the e-Prerana calendar and files the February catch-up without prompting.
Shops and establishments
Registration on the e-Karmika portal is your task before the first Bengaluru employee starts.
Our entity already carries the registration; your hire simply joins it.
Labour welfare fund
The 2025 Amendment pulled the threshold from 50 employees down to 10 effective January 2026, catching teams that were previously exempt.
We deduct ₹50, add ₹100 and remit every January regardless of your headcount maths.
Minimum wage tracking
Karnataka notifies revised scheduled-employment rates on an April to March cycle; the current one runs April 2026 to March 2027.
Rate checks are part of our monthly review, so no Bengaluru salary drifts below notification.
Central filings on top
TDS by the 7th and PF and ESIC by the 15th still apply, on your registrations.
All central challans run under our employer codes with receipts forwarded.
Cost of a slip
Late statutory money accrues 12% annual interest and damages up to 25%, addressed to your company.
Every registration in the chain is ours, so the exposure is too.

Karnataka layer on you
Karnataka professional tax You track the slab (nil below ₹25,000, ₹200 at or above, ₹300 in February as of 2026), enrol on e-Prerana within 30 days and remit by the 20th monthly.
Shops and establishments Registration on the e-Karmika portal is your task before the first Bengaluru employee starts.
Labour welfare fund The 2025 Amendment pulled the threshold from 50 employees down to 10 effective January 2026, catching teams that were previously exempt.
Minimum wage tracking Karnataka notifies revised scheduled-employment rates on an April to March cycle; the current one runs April 2026 to March 2027.
Central filings on top TDS by the 7th and PF and ESIC by the 15th still apply, on your registrations.
Cost of a slip Late statutory money accrues 12% annual interest and damages up to 25%, addressed to your company.

Karnataka layer on us
Karnataka professional tax Our desk holds the PTRC, works the e-Prerana calendar and files the February catch-up without prompting.
Shops and establishments Our entity already carries the registration; your hire simply joins it.
Labour welfare fund We deduct ₹50, add ₹100 and remit every January regardless of your headcount maths.
Minimum wage tracking Rate checks are part of our monthly review, so no Bengaluru salary drifts below notification.
Central filings on top All central challans run under our employer codes with receipts forwarded.
Cost of a slip Every registration in the chain is ours, so the exposure is too.
Month 1
Company name and incorporation filings start
Month 2
MCA certificate arrives
Month 3
PAN, TAN and GST registered
Month 4
PF, ESIC, e-Prerana and e-Karmika enrolments
Month 5
Bank account and payroll tooling ready
Month 6
First compliant Bengaluru payroll possible

Karnataka deadlines forgive nothing, and neither do the central ones.

Whether it is PT missed on the 20th or PF missed on the 15th, statutory arrears gather 12% yearly interest while damages climb toward 25% of the amount due.

On our model each of those deadlines is registered to Foo Falcon Technologies, so any recovery correspondence is ours to answer.

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What one Bengaluru filing lapse accrues over six months Interest plus damages, compounding together
₹6,200 Day 1
₹41,500 Day 30
₹1,84,000 Day 90
₹3,12,000 Day 180
Modelled on a modest wage bill with a single lapse. Larger Bengaluru payrolls accrue proportionally faster.
Whose door the inspector knocks on
Bengaluru payroll on your registrations You
Bengaluru payroll on Versatile's registrations Versatile

We are not remote administrators of Bengaluru payroll. Our own company is registered here, so Karnataka's portals are our home turf. Price a Bengaluru team both ways in the EOR versus entity calculator using real Karnataka salary bands.

A Bengaluru payroll month, divided between your team and ours.

You decide pay and approve one summary. We compute, remit to centre and state, and archive the Karnataka paper trail.

You run

  • Offers, salaries and revisions for Bengaluru hires
  • One monthly approval on the payroll summary
  • Day-to-day direction of the team

We handle

  • Gross-to-net with Karnataka PT applied
  • e-Prerana remittance by the 20th
  • TDS by the 7th, PF and ESIC by the 15th
  • January LWF cycle and S&E upkeep
  • Payslips, Form 16 and state registers

You run
  • Set Bengaluru pay
  • Approve monthly summary
  • Run the actual work
  • Own every commercial call

We handle
  • Compute with KA PT
  • File e-Prerana by 20th
  • Deposit TDS by 7th
  • PF and ESIC by 15th
  • Remit January LWF
  • Archive audit proof

When something happens in India, it is ours.
An e-Prerana or PT query lands Our desk answers
Karnataka revises a wage notification We apply it
An employee disputes a payslip line We rework it

A named compliance manager owns your account. Not a queue, not a chatbot, one person who already knows your headcount and your last filing.

Account managerMedian first reply 4 to 6 hours
Recruitment coordinatorBrief to shortlist 9 days
Finance associateFilings on time 8 / 8

Registered where your team sits.

Foo Falcon Technologies is itself a Bengaluru company, incorporated in 2022. The Karnataka registrations behind your payroll are the ones our own operations run on daily.

The LWF threshold change, already handled.

Karnataka's amendment cutting the labour welfare fund threshold from 50 employees to 10 took effect in January 2026 and quietly captured small teams. Our January remittance covers every head we employ, so the change cost our clients nothing.

February is not a surprise here.

Karnataka's ₹300 February professional tax month trips up payroll run from spreadsheets. Ours is templated into the cycle, so the extra ₹100 appears exactly once a year, correctly.

One fee spans centre and state.

TDS, PF, ESIC, Karnataka PT, LWF and the shops and establishments layer all sit inside the same flat monthly price, with employment itself included.

Registered where your team sits.

Foo Falcon Technologies is itself a Bengaluru company, incorporated in 2022. The Karnataka registrations behind your payroll are the ones our own operations run on daily.

A provider's home state is the one it files best in.

The LWF threshold change, already handled.

Karnataka's amendment cutting the labour welfare fund threshold from 50 employees to 10 took effect in January 2026 and quietly captured small teams. Our January remittance covers every head we employ, so the change cost our clients nothing.

Rule changes should be absorbed, not discovered.

February is not a surprise here.

Karnataka's ₹300 February professional tax month trips up payroll run from spreadsheets. Ours is templated into the cycle, so the extra ₹100 appears exactly once a year, correctly.

The calendar quirks are where in-house desks slip.

Moving someone across

Shift an existing Bengaluru payroll onto our desk mid-year.

Teams already running in Bengaluru, on a vendor or a stretched internal desk, move to us between cycles. We reconcile the year-to-date figures, keep every statutory clock running and take the next month live.

Tenure Kept
Gratuity clock Kept
PF and UAN Continuous
Payroll gap 0 days

The largest Bengaluru takeover we have run reconciled 200 records without a missed challan.

Supporting evidence

Verify the Bengaluru company behind the payroll.

Your team's employer would be Foo Falcon Technologies Pvt Ltd, registered in Bengaluru in 2022.

  • Incorporation
  • GST
  • EPFO code
  • ESIC
  • Shops and Establishments
  • PAN and TAN
  • Udyam MSME
What we verify
  • Incorporation Ministry of Corporate Affairs
  • GST Goods and Services Tax
  • EPFO code Employees Provident Fund Organisation
  • ESIC Ministry of Labour and Employment
  • Shops and Establishments Government of Karnataka
  • PAN and TAN Income Tax Department
  • Udyam MSME Government of India

Ask for the incorporation certificate and it arrives as a PDF by email, no call required.

200

employee records reconciled in our largest single payroll takeover

33

monthly cycles in a row delivered for one client with zero disputed payslips

5 days

for a Bengaluru hire to go from signed offer to live payroll

G2 4.8 / 5 on G2, from companies employing teams in India through us.

G2 4.8 / 5 on G2, from companies employing through us.

Clients on handing Bengaluru payroll to a Bengaluru company.

Founders and operators describe what changed after Karnataka's payroll calendar became our problem.

Video
Bharath Rasoi KS Rajeshwari Founder, Bharath Rasoi
Video
Open Theatre Anand Raj Founder, Open Theatre
Abid Hassan Verified client
Sensibull
“They moved fast and took the whole compliance side off my plate. For a founder making an early India hire, that is exactly what you want.”
Abid Hassan Founder and CEO, Sensibull
Via G2
Moonshot
“Every option was either 'set up your own entity' or a platform that quotes a great price then hits you with add-ons. Versatile was the one that actually made it simple. First payroll ran on time. No scramble.”
Angad S. Co-Founder, Moonshot
Via G2
Digital Marketing Agency
“Contracts, PF, ESI, TDS and payroll all in one place. Invoicing in USD meant zero exchange rate surprises. The compliance rigour is genuinely reassuring.”
Vedant T. Founder, Digital Marketing Agency
Via G2
Design Studio
“Setting up in a new country can get messy fast, but their India EOR made onboarding feel easy. The team is responsive, clear, and great to work with.”
Setu C. Studio Owner, Design Studio
Via G2
US Startup
“We used Versatile to hire our first employee in India after months of putting it off because the compliance side seemed like a mess. They walked us through it and now we don't think about it.”
Verified US Founder First-time Founder, US Startup
Via G2
Mid-Market Tech Co.
“Versatile consistently delivered work that was both strategically sharp and execution-ready. Their turnaround times are impressive, and they think about problems the way an in-house team would.”
Shivani K. Senior Manager, Tech TA
Via G2
Growth-stage Startup
“Their team was highly responsive, professional, and easy to work with. They made a complex process feel simple.”
Mukul S. Core Team, Growth-stage Startup

Case studies.

Largest food delivery app in India, decacorn View case study The world's largest professional network, part of Microsoft View case study Legacy US software company, publishing platforms View case study

Karnataka compliance included in one flat Bengaluru price.

$149 per employee monthly covers employment, the full payroll cycle and every Karnataka filing. $129 once you pass twenty heads. Recruitment optional at 12% of CTC.

Employer of Record

Bengaluru payroll inside
$149 /employee/mo

Employment on our Bengaluru entity with central and Karnataka filings bundled. Every seat reprices to $129 automatically past twenty heads.

Start hiring
  • Employment on our Bengaluru registration
  • Karnataka PT filed via e-Prerana
  • TDS, PF and ESIC on schedule
  • January LWF remittance covered
  • Payroll live in five working days
  • Named compliance owner
  • Employee payslip portal
  • Entity migration path when you scale
  • Employment on our Bengaluru registration
  • Karnataka PT filed via e-Prerana
  • TDS, PF and ESIC on schedule
  • January LWF remittance covered
Four more inclusions
  • Payroll live in five working days
  • Named compliance owner
  • Employee payslip portal
  • Entity migration path when you scale

Moving a Bengaluru team across? Sales will plan the cycle handover.

Recruitment

Bengaluru sourcing on tap
12% of annual CTC

Junior and mid-level Bengaluru searches at 12% of CTC, billed only at day ninety. Senior mandates run 15%; leadership quoted case by case. Your own candidates onboard free.

Send us a role
  • Shortlists within nine days
  • Bengaluru salary benchmarks
  • Loops scheduled around you
  • Nothing invoiced before day ninety
  • Senior roles at 15%
  • Leadership priced per mandate
  • Self-sourced hires free
  • Employ via us or your entity
  • Shortlists within nine days
  • Bengaluru salary benchmarks
  • Loops scheduled around you
  • Nothing invoiced before day ninety
Four more details
  • Senior roles at 15%
  • Leadership priced per mandate
  • Self-sourced hires free
  • Employ via us or your entity

Multiple Bengaluru seats? Ask sales about a bundled mandate.

Past twenty, automatically

$149 $129 /employee/mo

Head twenty-one triggers the drop, and the whole Bengaluru roster bills at $129 from that cycle.

The Karnataka work inside $149

  • Compliant Karnataka employment contract
  • Monthly gross-to-net, second-reviewed
  • e-Prerana PT by the 20th
  • TDS by the 7th, PF and ESIC by the 15th
  • January labour welfare fund cycle
  • Payslips, Form 16, state registers
  • Monthly proof pack for audit
  • Exit settlement computed correctly

Roster-wide at twenty-one

$149 $129 /employee/mo

Every existing seat repriced the same month, no paperwork exchanged.

Inside the fee

  • Compliant Karnataka employment contract
  • Monthly gross-to-net, second-reviewed
  • e-Prerana PT by the 20th
  • TDS by the 7th, PF and ESIC by the 15th
  • January labour welfare fund cycle
  • Payslips, Form 16, state registers
  • Monthly proof pack for audit
  • Exit settlement computed correctly

Recruitment bills 12% of annual CTC at day ninety for junior and mid-senior searches. Salaries and statutory contributions pass through at cost. Hardware and desks bill at usage via partners. Sanity-check the structure in the EOR versus entity calculator first.

Bengaluru payroll questions, with Karnataka specifics.

Eight questions Bengaluru employers ask us, answered with the state detail that generic payroll pages skip.

What is professional tax in Karnataka as of 2026?

Salaried employees earning ₹25,000 a month or more pay ₹200 monthly, with February stepped up to ₹300, and salaries below ₹25,000 attract nil. Employers deduct it, hold a PTRC obtained within 30 days of becoming liable, and remit through the e-Prerana portal by the 20th of the following month.

Does Karnataka labour welfare fund apply to small teams?

Since the 2025 Amendment took effect in January 2026, establishments with just 10 employees are covered, down from the earlier 50. The annual contribution is ₹50 from the employee and ₹100 from the employer, remitted each January. Teams under our employment are covered automatically whatever their size.

Do we need shops and establishments registration for Bengaluru staff?

An employer must register on Karnataka's e-Karmika portal, which is fully online. When your team is employed through us, our existing registration applies and there is nothing for you to file.

Which payroll deadlines matter most in Bengaluru?

TDS deposit by the 7th of the following month, PF and ESIC challans by the 15th, and Karnataka professional tax by the 20th. Miss any of them and interest at 12% a year starts, with damages reaching up to 25% of the shortfall.

How do Karnataka minimum wages work?

Rates are notified per scheduled employment on an April to March cycle, and the current notifications run April 2026 through March 2027. Our monthly review checks every Bengaluru salary against the applicable notification, though tech salaries sit far above the floors in practice.

Can we employ in Bengaluru without an Indian entity?

Yes. Foo Falcon Technologies Pvt Ltd, our own Bengaluru-registered company, employs your team, runs payroll on its registrations and invoices you once in USD. You direct the work; the statutory surface is entirely ours.

How fast can a Bengaluru hire be on live payroll?

Five working days from a signed offer. Recruitment, if you use it, adds a shortlist within nine days at 12% of CTC for junior and mid-level roles, invoiced at day ninety.

When should a Bengaluru company not outsource payroll?

If you already run a Karnataka-registered entity with finance staff who know e-Prerana and e-Karmika, a light payroll processor may suffice. Below three months of engagement, contractors fit better. And around forty to fifty settled heads, an in-house desk on your own entity becomes worth building. We will tell you when you cross that line.

Longer reading: India payroll hub · Payroll outsourcing Bengaluru · Outsource payroll India

Tell us where you are on the decision.

A role you want to hire, a team you want moved, or just the two routes to compare. A named person replies in 4 to 6 hours.

A named person replies in 4 to 6 hours, not an autoresponder.

We use these details to respond to your enquiry.

A named person replies in 4 to 6 hours, not an autoresponder. We use these details to respond to your enquiry.

What the first call covers

30 minutes

A cost comparison for your headcount, on your numbers, both routes.

  • A written cost breakdown
  • Entity documents before the call
  • PF, ESI, TDS, termination law
  • No follow-up sequence
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