Payroll

Payroll that's compliant by design

From CTC structure to payslip delivery, every step enforces Indian labour law automatically — EPF, ESIC, PT, TDS, LWF, and Code on Wages 2019.

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Full statutory auto-computation

EPF, ESIC, PT (all 21 states), TDS (old & new regime), and LWF calculated automatically on every payroll run. No manual look-ups, no rate errors.

Audit-ready payslips

Every payslip shows each deduction with the exact rate applied — EPF 12%, ESIC 0.75%, PT slab, TDS effective rate. Inspector-ready from day one.

Code on Wages 2019 enforcement

Platform automatically validates that at least 50% of CTC is structured as wages (Basic + DA + retaining allowance) before allowing a payroll run.

Pro-rata & arrears handling

Mid-month joiners and leavers get accurate pro-rata pay. Arrears from revised CTC are computed and posted in the correct period.

Advance & reimbursement tracking

Salary advances are recorded and automatically offset against gross pay. Reimbursements flow through as non-taxable components per IT rules.

Unlimited payroll runs

Run payroll as many times as needed per month — revisions, off-cycle payments, and supplementary runs are all included at no extra cost.

How payroll works

Four steps from employee record to compliant payslip.

01

Add employees

Import via CSV or add individually. Capture PAN, UAN, ESIC IP number, and state of work. The platform auto-assigns the correct PT slab and LWF schedule.

02

Configure CTC & policies

Define salary structure: Basic, HRA, Special Allowance, and reimbursements. Set leave policy, overtime rules (Factories Act / S&E Act), and TDS regime preference per employee.

03

Run payroll

Confirm attendance and LOP days, then click Run. All statutory deductions are computed in seconds — EPF, ESIC, PT, TDS, LWF, and advance recoveries — with a full calculation audit trail.

04

Download payslips & challans

Payslips are generated instantly and available to employees via the self-service portal. Export ECR files for EPF, ESIC return data, and PT challans ready for upload.

Statutory deductions handled automatically

Every deduction below is computed, tracked, and surfaced on the payslip with the exact rate applied.

DeductionEmployee %Employer %Cap / Notes
EPF (Provident Fund)12% of Basic + DA12% of Basic + DAEmployer split: 8.33% → EPS, 3.67% → EPF. Wage ceiling ₹15,000.
ESIC0.75% of gross wages3.25% of gross wagesApplicable if gross ≤ ₹21,000/month. Gross includes all allowances.
Professional TaxState slab (₹0 – ₹2,500/month)Nil (employer PT is a separate registration levy)Slabs vary by state; OpticompBharat auto-applies the correct slab.
TDS on salaryAs per IT slab (old or new regime)NilEstimated annual liability divided by remaining months; recalculated each run.
Labour Welfare Fund₹6 – ₹25/month (state-wise)₹12 – ₹75/month (state-wise)Collected twice a year in most states. Platform handles deduction timing.

Why compliance-first payroll matters

Payroll errors in India aren't just accounting mistakes — they attract statutory penalties, inspector scrutiny, and employee grievances that can escalate to labour court proceedings. Under the Employees' Provident Funds Act, late remittance attracts interest at 12% p.a. plus damages up to 25% of the arrears. ESIC defaults carry similar penalties. Professional Tax non-compliance can result in state-level prosecution.

The Code on Wages 2019 adds a structural compliance layer: at least 50% of CTC must be structured as "wages" (Basic + DA + retaining allowance). Employers who engineer low-Basic CTC structures to reduce EPF liability are exposed to back-demands with interest. OpticompBharat enforces this rule at the point of CTC configuration — before any payroll runs, not after an audit.

Penalty exposure at a glance

  • EPF late remittance: 12% p.a. interest + up to 25% damages
  • ESIC default: 12% p.a. interest + prosecution under ESI Act
  • TDS short-deduction: 1.5% p.m. interest + 271C penalty up to tax amount
  • Code on Wages CTC violation: back-demands + potential prosecution

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Full payroll + compliance platform. Up to 50 employees. No credit card. Operational in one working day.