Indian payroll, explained properly

The statutory math behind every Indian salary — written to be understood, with the exact formulas the suite itself runs.

• How EPF is calculated on salary

  EPF calculation explained: employee 12% of basic+DA, employer 12% split into EPS 8.33% (capped at ₹15,000 wages) and EPF 3.67%, plus EDLI and admin charges — with a worked example.

• How ESI is calculated and who it covers

  ESI calculation explained: 0.75% employee and 3.25% employer on gross wages, applicable when gross pay is ₹21,000 or less — with coverage rules and a worked example.

• Professional Tax: the state-level payroll deduction explained

  What Professional Tax is, why it differs by state, how slab-based deduction works on payslips, and how employers remit it — plus how payroll software automates the slab lookup.

• Old vs new regime: how salary TDS is projected

  How employers project salary TDS under the old vs new regime: standard deduction, Section 80C, HRA exemption, the Section 87A rebate, surcharge and cess — and what employees should declare.

• How Loss of Pay (LOP) is calculated

  How LOP works in Indian payroll: absent days and unpaid leave become LOP days, salary components are prorated by paid days, and statutory deductions follow the prorated pay.

• Full and Final settlement, decomposed

  FnF settlement explained for Indian employers: final salary, leave encashment, gratuity eligibility (5-year rule), notice-period recovery and statutory deductions on exit.

• Form 16: the employer's TDS certificate, explained

  What Form 16 is, what Parts A and B contain, when employers must issue it, and how it relates to the TDS your payroll deducted through the year.

• The PF ECR file, demystified

  The Electronic Challan-cum-Return (ECR) file explained: what EPFO expects, the member-wise contribution rows it contains, common upload errors, and generating it from payroll.

• Filing ESI contributions with ESIC

  How employers file ESI contributions with ESIC: monthly contribution submission, the return file's member-wise rows, deadlines, and generating the file from finalized payroll.

• Designing leave accrual policies that survive contact with payroll

  Designing leave accrual policies: casual, sick and earned leave conventions in India, accrual schedules, carry-forward and encashment, and enforcing balances transactionally.

• The Indian payroll compliance calendar

  The employer's recurring statutory calendar: EPF ECR by the 15th, ESI by the 15th, PT per state schedule, TDS deposit by the 7th, quarterly TDS returns and annual Form 16.