Under the ESI Act, employees whose gross salary exceeds Rs 21,000 per month (Rs 25,000 for persons with disability) are excluded from ESI coverage. Zoho Payroll checks gross salary each month when computing ESI contributions. If an employee’s salary rises above the threshold mid-year, Zoho Payroll stops ESI deductions from the following contribution period.
PF is not calculated on gross salary but on ‘PF wages’, which typically include only Basic and DA. The distinction matters in structures where gross is Rs 40,000 but Basic (PF wages) is Rs 15,000. Zoho Payroll computes PF on the tagged PF-applicable components only, ensuring statutory accuracy without overstating contributions.
Zoho Payroll payslips show a clear Earnings section that totals to Gross Salary, followed by a Deductions section. Gross Salary is printed explicitly as a subtotal line, making it easy for employees to verify their package and for employers to use the figure in reference letters or bank loan applications.
Gross Salary is the total of all earning components in a pay period before any deductions. Zoho Payroll calculates it by summing all positive components in the salary structure, then uses it to determine ESI eligibility, display on payslips, and as a reference for TDS and statutory reports.
No. Gross Salary is the employee-facing earnings total before deductions. CTC also includes employer contributions to PF, ESI, and gratuity accrual that the employee does not directly receive. Gross Salary is always less than or equal to CTC.
Aaxonix is a certified Zoho implementation partner based in Pune. Architecture-first, no surprises.