How Much Should We Pay for Outsourcing Payroll and Labor Compliance in Chennai?

Dear All, Our small company with 30 employees is based in Chennai and is involved in manufacturing. We are looking to outsource our payroll, which includes payroll calculation, PF, ESI returns filing, and maintaining registers and records as per applicable labor laws.

Consultant Fees and Representation

How much should we pay a third-party consultant for these services? Can we require them to represent the company during inspections related to PF, ESI, etc.?

Regards,
Rao

Hi,

Yes, if you wish, you can include a clause in your terms of engagement to have the consultant represent the company during inspections. This is a common practice. How will you present an explanation for something an external expert has done unless you are rechecking everything they did, which would be counterproductive?

The cost of services depends on your location and company size. Costs are generally higher for smaller services like yours. Not being in this field, I cannot provide you with an estimate. Logically, the costs will be similar to having a person in-house, except that you don't need to monitor them all the time or worry about them leaving, etc.

Please find enclosed the format for the payslip. Maybe it can help you.

Regards,
Rakesh