Professional tax, LWF and employee overrides

Professional tax (PT) and labour welfare fund (LWF) differ by state. This article shows how to set the slabs for the states you employ people in, and how to override statutory options for one employee.

Before you start

• Turn on Professional tax and Labour welfare fund on the PF · ESI · general tab first. LWF rows are ignored while LWF is switched off.
• You need the Run payroll, edit salary, FnF, deduction rules & adjustments permission.

Load professional tax slabs

1. Go to Payroll → Statutory Settings ( open Statutory Settings) and open the Professional tax tab.
2. In Load state template, pick a state and click Load. Current slabs for that state are retired and replaced.
3. To add or change a slab by hand, click Add slab and fill in State, Gender, Gross from (₹), Up to (₹, blank = no limit), PT per month (₹) and Effective from.
4. If the state charges a different amount in one month (for example February), set Different in month and Amount in that month (₹).

If an employee works in a state with no slabs, payroll still runs but the Review tab lists them under Professional-tax slabs missing.

Set up labour welfare fund

1. Open the Labour welfare fund tab.
2. Click Add state and enter the State, Employee (₹) and Employer (₹) amounts, the months it is Deducted in, and the Min gross (₹) and Max gross (₹, 0 = any) limits.
3. Click Save.

Override one employee's statutory options

1. Open the Employee overrides tab. It lists every employee with their PF, ESI and PT / LWF state.
2. Click the pencil icon on an employee's row to open their Statutory settings.
3. Change what you need:
   • PF member or Opted out — opt out only someone not eligible (for example joined with PF wages above the ceiling and never a member).
   • EPS member, Employee PF on (Org setting, Capped wages or Actual wages) and VPF % for voluntary PF.
   • ESI — By gross ceiling or Not applicable; tick Person with disability where it applies.
   • PT exempt, Work state (PT/LWF) (or From location / org) and LWF.
4. Click Save. The next payslip you generate or recalculate uses the new options.

Next steps

• Run monthly payroll