How Automated Payroll Software Manages PF, ESI, and Professional Tax

Managing payroll involves more than calculating employee salaries. Businesses in India may also need to calculate and manage statutory deductions such as Provident Fund (PF), Employees’ State Insurance (ESI), and Professional Tax (PT), depending on employee eligibility and applicable state rules.

Employees' State Insurance Corporation (ESIC) scheme in India. It outlines the 4% total contribution rate (3.25% employer / 0.75% employee), wage ceiling thresholds of ₹21,000 for standard employees and ₹25,000 for employees with disabilities, daily wage exemption rules, and monthly payroll compliance requirements.