RubanTools

Payroll Calculator India

Add employees, enter their salary components, and get a complete monthly payroll sheet with PF, ESI, Professional Tax, and net take-home pay.

Payroll Sheet

Employee Earnings (₹) Deductions (₹) Net Pay (₹)
BasicHRAGross PF (Emp)ESIPTTDS

India Payroll Calculator with PF, ESI and PT

Processing payroll in India involves significantly more complexity than a simple salary payment - employers must calculate and remit statutory deductions to multiple government bodies every month. The three primary statutory deductions are Employees' Provident Fund (EPF), Employees' State Insurance (ESI), and Professional Tax (PT), each governed by separate central and state laws with their own applicability thresholds, rates, and filing deadlines. This calculator automates all three, enabling HR teams and small business owners to generate accurate payroll figures in minutes.

EPF, ESI, and Professional Tax Explained

Under the Employees' Provident Funds Act 1952, both employer and employee contribute 12% each of the employee's Basic + DA to the EPF, mandatory for establishments with 20 or more employees. ESI (Employees' State Insurance) applies to employees earning up to Rs. 21,000/month in companies with 10 or more employees - the employee contributes 0.75% and the employer 3.25% of gross wages. Professional Tax, levied by state governments, varies from Rs. 0 to Rs. 200/month depending on the salary slab and state - Maharashtra, Karnataka, and Tamil Nadu being the largest PT-collecting states.

Compliance for Indian MSMEs and Startups

India has over 6.3 crore registered MSMEs employing approximately 11 crore people, most of which process payroll manually or through basic spreadsheets. EPFO (Employees' Provident Fund Organisation) reported over 7 crore active EPF accounts as of 2024, indicating the scale of statutory payroll compliance. Non-compliance with EPF and ESI carries penalties under respective acts. This tool helps business owners, chartered accountants, and HR managers generate a multi-employee payroll sheet with all statutory deductions pre-calculated, which can be downloaded as a printable PDF for records and compliance audits.

Payroll FAQ

Employee PF (EPF) contribution is 12% of basic salary. The employer also contributes 12%, of which 8.33% goes to EPS (Employees' Pension Scheme, capped at ₹1,250/month) and 3.67% to EPF. The PF cap is on ₹15,000 basic - maximum employee contribution is ₹1,800/month.

Employees earning a gross salary of up to ₹21,000 per month are covered under ESIC. Employee contribution is 0.75% of gross salary; employer contribution is 3.25%. ESI provides medical, maternity, disablement, and dependent benefits.

TDS on salary (Section 192) is calculated based on the employee's estimated annual income and applicable income tax slab. The employer divides the estimated annual tax liability by 12 and deducts that amount each month. Employees submit Form 12BB declaring investment proof to reduce TDS.

Gross salary = Basic + HRA + Transport Allowance + Medical Allowance + Special Allowance. It excludes Employer PF and Gratuity. CTC = Gross Salary + Employer PF + Gratuity. Net salary = Gross Salary − (Employee PF + ESI + Professional Tax + TDS).