Configure PF, ESI and gratuity
Switch on Provident Fund, ESI, professional tax, LWF and gratuity, and set wage ceilings, rates and net pay rounding for your company.
Statutory settings tell the payroll engine which statutory deductions apply to your company and how to work them out. Set them before your first payroll run.
Before you start
- You need the Run payroll, edit salary, FnF, deduction rules & adjustments permission to save. View-only users can read the settings.
- Your company's state should be set in your organisation details — professional tax falls back to it.
Steps
- Go to Payroll → Statutory Settings ( open Statutory Settings).
- Stay on the PF · ESI · general tab.
- Provident Fund — turn the switch on, then check:
- Components counted as PF wages — salary component codes, comma separated (Basic + DA by default).
- Wage ceiling (₹) and whether the Employee share on and Employer share on use Capped wages or Actual wages.
- Show admin charges as employer cost if you want PF admin charges on the payslip and CTC report.
- ESI — turn it on and check the Gross ceiling (₹), Ceiling – disabled (₹), Employee % and Employer %.
- Professional tax and Labour welfare fund — turn them on here, then set the state slabs on their own tabs.
- Gratuity provision — turn it on and set the Rate (% of Basic + DA). It shows as an employer cost, not a deduction.
- Choose Net pay rounding: Nearest rupee, Next rupee (up) or No rounding (paise).
- Enter the Salary debit account (bank files) — it is printed in bank transfer files.
- Click Save settings.
How the rules are applied
| Item | How it works |
|---|---|
| PF | Employee 12% and employer 12% of PF wages. The employer share is split into EPS 8.33% (up to the ceiling) and EPF 3.67%, plus EDLI and admin charges. EPS stops at age 58. Contributions are rounded to the rupee. |
| ESI | Coverage is judged on fixed monthly gross. Once covered in a contribution period (April–September or October–March), the employee stays covered until it ends. Contributions are on gross earned, rounded up. |
| PT and LWF | By the employee's work state: their own override, then their work location, then your organisation's state. |
Payslip warnings
If an employee has PF deducted but no UAN, the run's Review tab warns you and they are left out of the PF ECR file. Add UANs to employee profiles before you approve.
The FnF leave encashment ÷ and Notice pay on fields on the same tab are used by full and final settlements — see full and final settlement.
Next steps
Still stuck? Email info@cybexinnovation.com or WhatsApp +91 89277 73048.