Payroll software with PF and ESI should calculate the employee and employer shares on the correct wage base, deduct professional tax by state and TDS, and export the PF ECR and ESI contribution files ready for upload, with a bank transfer file for salary. FundRaksha HR Pro does this at ₹79 per employee per month + GST, with PF ECR, ESI, PT, TDS, bank and Tally exports.
What the software must calculate
| Deduction | Base | Who pays | Source of rule |
|---|---|---|---|
| PF (EPF and EPS) | PF wages: basic, DA, retaining allowance, up to the wage ceiling | Employee 12%, employer 12% split between EPS and EPF | EPFO; see the PF calculator |
| ESI | Gross wages, for employees within the ₹21,000 limit | Employee 0.75%, employer 3.25% | ESIC |
| Professional tax | Gross salary, by state slab | Employee, deducted by employer | State law |
| TDS | Projected annual taxable income | Employee, deducted by employer | Income-tax Act |
The wage base is where most errors happen: PF on gross instead of basic, ESI deducted for someone above the limit, or PT from the wrong state.
The files you need each month
- PF ECR to upload on the EPFO employer portal.
- ESI contribution file for the ESIC portal.
- Professional tax working for the state return.
- TDS working for the quarterly return.
- Bank transfer file to pay salaries.
- Accounting export, for example Tally XML, so your accountant does not re-enter payroll.
FundRaksha HR Pro produces all six. It does not list Form 16 or labour welfare fund on its website; if you need those inside the software, ask before you buy.
Worked example: PF and ESI for one employee
A machine operator earns ₹20,000 gross: basic plus DA ₹11,000, other allowances ₹9,000. He worked all 30 days.
| Item | Calculation | Amount |
|---|---|---|
| Employee PF | 12% of ₹11,000 | ₹1,320 |
| Employer PF (EPS + EPF) | 12% of ₹11,000 | ₹1,320 |
| Employee ESI | 0.75% of ₹20,000 | ₹150 |
| Employer ESI | 3.25% of ₹20,000 | ₹650 |
If his gross rose above ₹21,000 at the start of a contribution period, ESI would no longer be deducted for the next period. Check edge cases with the ESI calculator and current PF ceiling and EDLI charges with the PF calculator.
Monthly compliance routine in FundRaksha HR
- Attendance and leave close for the month; paid days are calculated.
- Advances, incentives and reimbursements are added.
- PF, ESI, professional tax and TDS are calculated.
- Review, then lock payroll.
- Download the PF ECR, ESI, PT and TDS files, the bank file and the Tally XML.
- Release payslip PDFs to employees.
| Plan | Price (per employee per month, + GST) | Main additions |
|---|---|---|
| Standard | ₹49 | GPS check-in (one phone per employee), attendance rules, holidays and week-offs, corrections, leave, salary calculation, payslip PDFs, mobile admin app and web console |
| Pro | ₹79 | Everything in Standard, plus PF, ESI, professional tax and TDS; PF ECR, ESI, PT, TDS, bank and Tally files; advances, reimbursements, incentives, shift roster, Excel import, manager approvals |
| Enterprise | ₹99 | Everything in Pro, plus biometric devices (ZKTeco / eSSL), API for other attendance systems, admin roles, priority support and guided onboarding |
Every plan has a 30-day free trial with your real team, and there is no bill for the trial period. After that, you pay only for active employees in the month. See pricing.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.