Payroll with PF and ESI for factory teams
Salary structures, PF and ESI worked out for the employee and the employer, and salary slips generated for the whole payroll run in one click.
Payroll next to the rest of the business
Payroll in ARUKZ ERP uses the same employee records as leave, timesheets and recruitment, and it is in the same login as sales and accounts. Access is controlled by role, so only the people you choose see salaries.
How a payroll run works
- Salary structure. For each employee, enter basic pay, allowances and any fixed tax deduction.
- Payroll run. Create a run for the month.
- Generate slips. One click creates a salary slip for every employee with a structure, with PF and ESI worked out.
- Review. Open any slip to check or adjust it. The run shows the totals.
How PF and ESI are worked out
| Scheme | Employee | Employer | Applies to |
|---|---|---|---|
| Provident Fund (EPF) | 12% | 12% | Basic pay, up to a wage ceiling of ₹15,000 a month |
| ESI | 0.75% | 3.25% | Gross pay, only when gross is ₹21,000 a month or less |
These are the rates the system is set up with. If the government revises a rate or a ceiling, it is changed in one place and every later run uses the new figure.
A worked example
An operator has basic pay of ₹12,000 and gross pay of ₹18,000 a month.
| Item | Amount |
|---|---|
| PF, employee share (12% of ₹12,000) | ₹1,440 |
| ESI, employee share (0.75% of ₹18,000) | ₹135 |
| Total deductions | ₹1,575 |
| Net pay | ₹16,425 |
| PF, employer share (12% of ₹12,000) | ₹1,440 |
| ESI, employer share (3.25% of ₹18,000) | ₹585 |
A supervisor on ₹30,000 gross with ₹20,000 basic pays PF on the ₹15,000 ceiling, which is ₹1,800, and no ESI, because gross is above ₹21,000.
Around payroll
- Employees. Departments, job positions and personal records.
- Leave. Leave types, allocations and approvals.
- Timesheets. Hours against projects and tasks.
- Recruitment. Openings, applicants and stages.
What it does not do
- It does not file PF or ESI returns. You file on the EPFO and ESIC portals using the figures from the run.
- It does not compute income tax (TDS) from tax slabs. You enter the monthly deduction on the salary structure.
- It does not yet pay salaries through a bank integration.
Related
Last updated 12 October 2026