PF ESI payroll software for Indian employers
AiroHR calculates PF, ESI and Professional Tax inside every salary run, deducts the monthly TDS you set, then gives you the EPFO ECR file and ESIC contribution data ready to upload. No separate compliance spreadsheet, no re-keying wages into a second tool.
Statutory deductions worked out from the same payroll data
Most PF and ESI errors come from copying wages between a payroll sheet and a compliance sheet. In AiroHR the statutory figures are computed from the locked payroll itself, so the payslip, the ECR and the ESI data always agree.
PF contributions, split correctly
12% employee and 12% employer on PF wages (Basic, plus any earning heads you mark 'PF applicable' once 'PF calculated on' in CTC Setup includes them). The employer share is split: 8.33% to EPS on wages up to the statutory ceiling (at most ₹2,083 a month at the ₹25,000 ceiling in force from 17 September 2026; ₹1,250 at the earlier ₹15,000 ceiling) and the rest to EPF. Contributions are mandatory on PF wages up to ₹25,000; contributing above it is your choice.
EPFO ECR file and reports
Generate the ECR text file in the format the EPFO Unified Portal accepts, with UAN, gross wages, EPF, EPS and EDLI wages and NCP days per member. Also get the ECR return statement PDF, PF enrolment and PF extract reports for your records. See the PF ECR filing guide and the ₹25,000 wage ceiling guide, or try the free PF calculator.
UAN on the employee record
UAN and PF applicability live on each employee profile, and the ECR is built straight from those records. The PF enrolment report lists new joiners so they are registered and appear in the right month's return.
ESI with eligibility rules
Employee 0.75% and employer 3.25% of gross wages for staff earning up to ₹21,000 a month (₹25,000 for persons with disability). The wage limit is re-tested every payroll month, and HR can keep ESI on for an employee to the end of the April–September or October–March contribution period. See the ESI calculation guide.
Professional Tax by state
PT is a state levy with its own slabs. AiroHR applies the state PT slabs you configure in CTC Setup for each employee's work state, on gross pay including overtime, which matters for multi-state companies and for months with heavy OT. See the Karnataka PT guide.
TDS on salary
HR sets each employee's monthly TDS and every payroll run deducts it, never more than the month's pay, with any balance carried forward. Employees declare their regime and investments in the employee portal and can compare regimes, and Form 16 is generated at year end. See the TDS on salary guide and the Form 130 guide.
Compliance holds and locks
The Compliance Command Center shows every statutory head in one place. Put a hold on a single compliance, for one employee or company-wide, or lock it once filed so figures cannot change after upload.
Per-employee applicability
Trainees, consultants, directors and workers above the ESI limit rarely share one rule. Switch PF, ESI and PT on or off per employee and the payroll run, payslip and reports follow.
Configurable rules
PT slabs per state, PF and ESI settings and the PF wage ceiling (₹25,000 from 17 September 2026) are configured per company, so you can update them when rules change instead of editing formulas in a spreadsheet.
From punches to PF and ESI upload in four steps
- Capture attendance. The Airo Lens face-recognition kiosk, mobile selfie punches and imported biometric logs feed attendance, with overtime rules and shifts applied.
- Lock the month. Attendance is locked before payroll, so payable days and NCP days cannot shift after statutory figures are calculated. Standard months, 26–25 and custom cycles are supported.
- Run payroll. PF, ESI and PT are computed, and the monthly TDS you set is deducted, per employee in the payroll run. Review, then lock; payslips go out by email and WhatsApp.
- Download and upload. Download the ECR file and ESI data, upload them on the EPFO and ESIC portals, and pay the challans there. PF and ESI dues are payable by the 15th of the following month. (EPFO moved the September 2026 PF date to 31 October 2026.)
AiroHR prepares portal-ready files that you upload; it does not submit returns to EPFO or ESIC on your behalf. You keep the final check before anything is filed.
Who uses PF and ESI software like this
- SMEs moving off Excel who file PF and ESI every month and want payroll and returns to match.
- Factories and plants with shift workers, overtime and many employees under the ESI wage limit.
- Security and manpower contractors deploying staff at several principal clients, with a separate profile per client and duty-based pay.
- Multi-state employers who need the right Professional Tax slab for each branch.
The rest of payroll comes with it
PF and ESI are one part of the monthly cycle. The same account covers the work around them:
- 15 payslip templates, delivered by email and WhatsApp
- Bank transfer file export for salary payouts
- Employee self-service portal and Android and iPhone app for payslips, leave and PF details
- Leave, onboarding and employee records in AiroHR's HR software
Pricing
Statutory calculations are included on every plan, not sold as an add-on. Starter starts at ₹49 per employee per month (see Pricing for all plans), with a free trial and no setup fee.
Compare plans Talk to a payroll specialistPF and ESI software questions, answered
Does AiroHR file PF and ESI returns directly with EPFO and ESIC?
No. AiroHR prepares portal-ready files and reports: the PF ECR text file in the EPFO upload format and the ESI monthly contribution data. You upload them on the EPFO Unified Portal and the ESIC portal and pay the challan there. Keeping the final submission with you means nothing is filed without your review.
How does AiroHR handle the PF wage ceiling?
The statutory PF wage ceiling is ₹25,000 a month from 17 September 2026 (₹15,000 for wages before that date), and every covered establishment must apply it; contributing on wages above the ceiling is optional. In AiroHR the PF wage ceiling is a company setting under Taxes & Compliance, so check it shows ₹25,000. PF wages are Basic, plus any earning heads you mark 'PF applicable' once 'PF calculated on' in CTC Setup is set to include them. EPS is 8.33% of wages up to the ceiling, at most ₹2,083 a month (₹1,250 at the old ₹15,000 ceiling), and the rest of the employer's 12% goes to EPF.
What happens when an employee's salary crosses the ESI limit mid-year?
ESI coverage follows contribution periods (April to September and October to March). An employee who was covered at the start of a period stays covered, and contributions continue, until that period ends even if gross wages rise above ₹21,000. AiroHR re-tests the ESI wage limit in every payroll month, so when an employee crosses it mid-period, HR keeps ESI on until the period ends by switching off that employee's ESI wage-limit check in their deductions settings.
Can AiroHR calculate Professional Tax for different states?
Yes. AiroHR applies the state PT slabs you configure in CTC Setup, on gross earnings including overtime, based on each employee's work location. Companies with branches in several states set up a slab for each state and get it applied per branch in the same payroll run.
How is TDS on salary handled in the payroll run?
HR sets each employee's monthly TDS amount and every payroll run deducts it (never more than the month's pay; any balance carries to the next month). Employees declare their tax regime and investments in the employee portal and can compare the two regimes there. Form 16 can be generated at year end.
Is this suitable for security and manpower contractors?
Yes. Contractor mode keeps a separate profile for each principal client, including duty hours and duty-based pay, so wages, PF and ESI can be worked out and reported client-wise for principal employer compliance checks.
Statutory rates and limits on this page are a general summary, not legal advice, and can change by government notification. Last reviewed: October 2026.
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