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New Labour Codes and the Income-tax Act, 2025.see what’s changing

Pay

Payroll & statutory compliance

One run. Every statutory number calculated, and every one traceable.

Payroll is where an HRMS either earns its keep or creates a second job. EZER calculates gross, deductions, employer contributions and every applicable statutory head in a single pass, from the attendance you already captured and against the salary structure you already configured.

Illustrative · sample data

Without a system

How this gets done today

Without a system, month-end is a chain of spreadsheets. Attendance comes off a biometric export, the salary sheet is built by hand, and EPF, ESIC, PT and TDS are each worked out in their own tab.

Every one of those handoffs is a place for a number to change. The register is reconciled twice because nobody quite trusts it the first time, and when an employee disputes a deduction there is no calculation to point at, only a cell.

What it does

Inside payroll & statutory compliance

  1. 01

    A run you can reverse

    Lock attendance, calculate, review the variance against last month, then release. Nothing is final until you release it, so a mistake found on the 29th is a re-run, not a correction cycle.

  2. 02

    EPF, exactly as the act requires

    Employee and employer contribution, the EPS split, admin and EDLI charges, and wage-ceiling handling for members above and below the limit. ECR-ready output.

  3. 03

    ESIC with contribution-period rules

    The wage ceiling, mid-period crossings and the rule that an employee who crosses mid-period stays covered to the end of it. All handled, rather than left to whoever remembers.

  4. 04

    Professional Tax, state by state

    PT slabs configured per state and applied by the employee’s work location, so a company operating in five states runs one payroll, not five.

  5. 05

    LWF at the right frequency

    Labour Welfare Fund varies by state in both rate and frequency: monthly, half-yearly or annual. Configured once per state registration.

  6. 06

    TDS across both regimes

    The new regime by default and the old one where an employee opts out, under the Income-tax Act, 2025. Declarations, verified proofs, a month-on-month projection that updates as the tax year progresses, and Form 130 (formerly Form 16) at the end of it.

  7. 07

    Arrears that reach backwards

    A retrospective increment recalculates the affected months and carries its statutory effect with it, rather than being dropped in as a lump sum that breaks the PF reconciliation.

  8. 08

    Full & final in one settlement

    Notice period, leave encashment, gratuity, loan recovery and pending claims resolved together, with the statutory deductions applied to the settlement itself.

A worked example

One payslip, with the arithmetic shown

A fictional employee in Pune on a monthly gross of ₹58,000. The figures tie out, which is the whole point of showing them.

Priya Deshmukh

EZ-1042 · Senior Executive, Finance

August 2026

Pune, Maharashtra

Paid days: 31 of 31

Earnings

Basic
₹23,200
House Rent Allowance
₹11,600
Conveyance Allowance
₹1,600
Special Allowance
₹21,600
Gross earnings₹58,000

Deductions

EPF employee contribution
₹1,800
12% of the ₹15,000 ceiling in force for August 2026
Professional Tax
₹200
Maharashtra slab for this gross
TDS
₹4,350
Projected across the remaining year
Total deductions₹6,350
Net pay₹51,650

Employer contributions

EPF employer contribution
₹1,800
3.67% EPF + 8.33% EPS on ceiling wage
EPF admin & EDLI charges
₹225
Employer cost, not an employee deduction
  • ESIC does not apply: the gross is above the ₹21,000 wage ceiling.
  • From 17 September 2026 the EPF wage ceiling is ₹25,000, so the same employee’s October payslip carries EPF on ₹25,000.
  • Employer contributions are shown for transparency. They are a cost to the company, not a deduction from the employee.

Every statutory head, act by act

Every number traces back

Every figure on a payslip can be opened to show what produced it: the attendance days counted, the salary structure in force that month, the statutory rate and ceiling applied, and the regime or slab used. That trail is the difference between a payroll that is correct and one that can be shown to be correct. Only the second kind survives an audit or a dispute.

On the demo call

What you will see working

  1. A payslip that explains itself

    Each deduction carries its basis. When an employee asks why PF changed, the payslip answers before HR has to.

  2. What is due, and what is filed

    Every registration you hold, with due dates and filing status. Nothing is due only in someone’s head.

Who it’s for

What each person gets out of it

HR
Month-end closes in hours. Statutory heads are calculated, not assembled.
Finance
Every figure traces to its calculation. The audit question has an answer on screen.
Employees
Payslips arrive in the portal with each deduction explained.
Managers
Cost by department and location, without asking HR for an extract.

Questions

About payroll & statutory compliance

Can you handle multiple states and multiple entities?

Yes. Professional Tax and LWF are configured per state registration and applied by the employee’s work location. Multiple legal entities each keep their own EPF, ESIC and PT registrations, their own letterhead and their own statutory calendar, while HR works in one system.

What happens to year-to-date figures when we migrate mid-year?

They come across with the migration. This matters more than most other data: without accurate year-to-date earnings and tax deducted, the TDS projection for the remaining months is wrong, and every employee sees a mismatch in their Form 130.

Is the calculation auditable?

Every component on a payslip can be opened to show the inputs it was derived from: the attendance days, the salary structure in force that month, the statutory rate applied and the ceiling logic used. That trail is what makes a payroll defensible in an audit rather than merely correct.

See EZER on your own data

See payroll & statutory compliance on your own data

Tell us your headcount and your states, and we will walk through payroll & statutory compliance against your actual setup rather than a generic demo account.

No obligation, no credit card, and we won't add you to a mailing list without asking.

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