As enforcement of India’s new labour codes gathers pace, payroll compliance has moved from a back-office function to a business-critical requirement. Employers are now expected to meet stricter norms around wage structuring, statutory deductions, filing timelines, and digital record-keeping, with limited tolerance for error.

Against this backdrop, Kredily, a Bengaluru-based HRMS and payroll technology company, has announced a one-year complimentary Bharat Payroll OS Plan to help Indian MSMEs and startups adapt to the evolving regulatory framework.

The initiative aligns with the Next Generation Incubation Scheme (NGIS)Chunauti 5.0 framework, with Kredily being the winner of STPI - NGIS Chunauti 5.0 and backed by Meity Startup Hub - Govt of India through the Samridh scheme. It is available to DPIIT-recognised startups and MSMEs holding a valid Udyam registration. In addition, registered chartered accountant firms and licensed CA partners can extend the plan to their client organisations.

“Compliance today directly impacts a company’s ability to operate without disruption,” said Devendra Khandegar, Founder and Chief Executive Officer of Kredily. “For MSMEs, the challenge is rarely intent; it is access — access to payroll systems that are accurate, audit-ready, and aligned with Indian labour laws. This initiative is meant to ensure that regulatory compliance does not become a cost or complexity barrier.”

The rollout of the labour codes has increased scrutiny on provident fund, employee state insurance, bonus calculations, wage ceilings, and digital employment records. Many smaller businesses, particularly in tier-2 and tier-3 cities, continue to rely on manual processes or disconnected tools, increasing exposure to compliance risks and penalties.

Kredily’s Bharat Payroll OS Plan offers a ready-to-deploy platform built specifically for Indian regulatory requirements. The system supports automated payroll processing with statutory calculations, compliance filings across PF, professional tax, TDS, and ESI, and the generation of payslips and digital audit trails. It also integrates employee onboarding and HR documentation, reducing dependence on spreadsheets and manual reconciliations.

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By extending eligibility to chartered accountant firms, the initiative also targets a critical layer in India’s compliance ecosystem. CAs continue to serve as primary compliance advisors for MSMEs, yet payroll execution often remains fragmented. A centralised, regulation-aligned system enables greater consistency, visibility, and audit preparedness for both employers and advisors.

The company said the initiative aligns with the government’s Digital India and Ease of Doing Business objectives, which emphasise formalisation, digitization, and reduced compliance friction for smaller enterprises. As labour law enforcement intensifies, early adoption of compliant payroll systems is expected to play a key role in business continuity and scalability.