Statutory Configuration
Set up PF, ESI, Professional Tax, LWF, and Gratuity rules for automated statutory payroll compliance.
Statutory configuration sets the compliance rules used automatically during every payroll run.
Statutory Components to Configure
Provident Fund (PF)
| Setting | Description |
|---|---|
| PF Wage Ceiling | Maximum salary on which PF is calculated |
| Employee PF Rate | Employee contribution percentage (default 12%) |
| Employer PF Rate | Employer contribution percentage |
ESI — Employee State Insurance
| Setting | Description |
|---|---|
| ESI Wage Limit | Maximum salary eligible for ESI |
| Employee ESI Rate | Employee contribution rate |
| Employer ESI Rate | Employer contribution rate |
Professional Tax (PT)
PT is state-specific. Configure slabs per state.
| Field | Description |
|---|---|
| State Code | State identifier |
| Salary From | Minimum salary for this slab |
| Salary To | Maximum salary for this slab |
| PT Amount | Monthly PT deduction amount |
| Effective Date | Date from which slab applies |
Labour Welfare Fund (LWF)
LWF applies only in specific states and months.
| Field | Description |
|---|---|
| State Code | State where LWF applies |
| Employee Contribution | Employee LWF amount |
| Employer Contribution | Employer LWF amount |
| Applicable Months | Months when LWF is deducted |
| Effective Date | Date from which rule applies |
Gratuity
| Setting | Description |
|---|---|
| Gratuity Percentage | Percentage of basic salary for gratuity |
| Applicability | Eligibility rules for gratuity calculation |
How to Configure Statutory Rules
- Go to Payroll → Statutory Configuration
- Select the statutory component
- Enter applicable values
- Set effective date
- Save configuration
Review statutory configurations at the start of every financial year. Government-revised PF wage ceilings, ESI limits, and PT slabs must be updated in HRORA to keep payroll compliant.