PF and ESI settings
Choose how employer PF and ESI are worked out for the business, which staff are covered, and the PF, UAN and ESI details each staff profile needs.
Business settings
Go to Salary → Payroll settings, section PF and ESI.
| Setting | What it does |
|---|---|
| Employer PF on the actual PF wage (not capped at the ceiling) | Employer PF on the full PF wage instead of the wage ceiling |
| Employer PF, EDLI and admin charges inside the CTC | Counts these inside the CTC you quote |
| Employer ESI inside the CTC | Counts employer ESI inside the CTC |
| When ESI wages go above the limit | Keep ESI to the end of the contribution period or Stop ESI from that month |
Select Save after changes.
Which pay counts
Each salary component says whether it Counts for PF (Always, Only below the PF ceiling or No) and whether it Counts for ESI. See Salary components.
Each staff member
Open the staff profile, Profile tab, Employment section:
- UAN, PF number and PF joining date;
- ESI number;
- under Eligibility: PF, EPS (pension), ESI, Professional tax and Labour welfare fund.
Turn an item off for someone who is not covered. You need the Edit bank, PAN and personal details permission to change these.
Rates and limits
The PF wage ceiling, the ESI wage limit and all rates are dated statutory data, not settings. Payroll uses the value in force for each period. See What statutory payroll computes.
Related articles
What statutory payroll computes
Which of PF, ESI, Professional Tax, LWF and TDS payroll works out for your business, why one may show as pending, and what each status means.
Salary components
Add earnings and deductions such as Basic, HRA or a canteen deduction, choose how each is worked out, and set how it counts for PF, ESI, PT and tax.
Add statutory registrations
Record your PF establishment code, ESI employer code, PT, LWF and TAN registrations by branch and state, so payroll computes those items.
Still need help?
Write to us with your business name and what you were trying to do. We answer by email.