Zoho Payroll: PF, ESI, and Statutory Compliance for Indian Companies

Aaxonix Team Aaxonix Team · Mar 26, 2026 · 3 min read #ESI #Indian Payroll #PF
Zoho Payroll: PF, ESI, and Statutory Compliance for Indian Companies

Payroll in India means Zoho Payroll India setup guide contributions, ESI deductions, Professional Tax, TDS on salary, and compliance with multiple statutory bodies. Zoho Payroll handles all of these within a single payroll run, reducing calculation errors and missed filings.

Statutory payroll calculations in Zoho implementation partner India Payroll

Statutory Components

ComponentEmployeeEmployerAuthority
EPF12% of basic12% of basicEPFO
ESI0.75% of gross3.25% of grossESIC
Professional TaxVaries by stateN/AState govt
TDS on SalaryAs per slabN/AIncome Tax

Setting Up PF

Enter your PF establishment code in Settings > Statutory Components > PF. Choose whether PF is on Rs. 15,000 ceiling or actual basic. Zoho Payroll computes both employee and employer shares on every payroll run.

ESI Configuration

ESI applies to employees with gross up to Rs. 21,000/month. Enter your ESIC code. Zoho Payroll auto-discontinues ESI when salary crosses the tZoho People HR and attendance managementeshold.

PF and ESI remittance challan preparation

Professional Tax

Pre-configured slabs for all states that levy PT (Maharashtra, Karnataka, Tamil Nadu, etc.). Set your state and Zoho Payroll applies the correct slab per employee.

TDS on Salary

Employees submit investment declarations at the start of the financial year. Zoho Payroll distributes projected tax across months. Update with actual proofs in January-February and the system recalculates remaining TDS.

Filing and Remittance

After each payroll run, Zoho Payroll generates challan reports for PF (due 15th), ESI (due 15th), and TDS (due 7th). It also generates ECR files for direct upload to the EPFO Unified Portal.

Frequently Asked Questions

Does Zoho Payroll generate PF ECR files?
Yes. Download the ECR file and upload directly to the EPFO Unified Portal. No manual ECR preparation needed.
Can it handle different PT rates for employees in different states?
Yes. PT is calculated based on each employee’s work location state, not the company’s registered state.
New tax regime vs old?
Each employee selects their regime. Zoho Payroll handles both in the same payroll run for different employees.
Code on Wages 2019 compliance?
Zoho Payroll is prepared for the changes. When rules are officially enforced, the system will update PF and gratuity calculations accordingly.
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