PF ESI payroll software for Indian employers
AiroHR calculates PF, ESI, Professional Tax and TDS inside every salary run, 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. The employer share is split into 8.33% EPS, on wages up to the PF ceiling (at most ₹1,250 a month at ₹15,000, or ₹2,083 at ₹25,000), and the balance 3.67% to EPF. PF wages (basic plus DA) are capped at the ₹15,000 statutory ceiling by default, or the revised ₹25,000 ceiling a company can opt into from 17 September 2026.
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.
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.
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.
TDS on salary
Each payroll run deducts TDS from projected annual salary, or an amount HR sets per employee. Employees declare their regime and investments in the employee portal and see their TDS projection, and Form 16 is generated at year end.
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 (₹15,000 or ₹25,000) 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. Biometric devices, the AiroLens face-recognition kiosk and mobile selfie punches 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, PT and TDS are computed 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.
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 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 14-day 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?
PF is calculated on PF wages (basic plus DA), capped at the statutory ceiling: Rs 15,000 by default, or the revised Rs 25,000 if the company opts in with an effective date from 17 September 2026. The employer pension (EPS) share is 8.33% of wages up to the chosen ceiling, so it never exceeds Rs 1,250 a month (or Rs 2,083 at the Rs 25,000 ceiling), and the rest of the 12% employer share 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 Rs 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.
Is TDS on salary calculated in the payroll run?
Yes. Each payroll run deducts TDS worked out from projected annual salary, or an amount HR sets for the employee. Employees declare their tax regime and investments in the employee portal and can see their TDS projection 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: September 2026.
Run this month's PF and ESI from payroll
14-day free trial · No setup fees · Free data migration
Get started free