This setting allows the admin to set up compliance and taxes following the up-to-date Law of India.
There are four components in the compliance setting of India:
Employees State Insurance is a self-financed social security scheme designed to protect employees that are governed. For both employees and employers, there are set rates for ESI contributions paid to the ESI corporation. Grove HR will automatically update these indicators in accordance with the current laws of India.
By clicking the activate/deactivate button, the admin can choose whether or not to calculate this component in employees’ payroll.
📌 Note: This component will be applied to the entire employee's payroll.
Employees’ Provident Fund is a retirement benefits scheme. The employee and the employer each contribute 12% of the basic salary and dearness allowance to the EPF scheme on a monthly basis. Grove HR supports 3 main methods. The admin can click on the Pencil button to view more.
The admin can decide whether to calculate this component in employees’ Payroll or not by clicking the activate/ deactivate button as well.
📌Note: This component will be applied to the entire employee's payroll.
3. Professional tax
It is a direct tax that is deducted from employees' gross salaries by the employer.
This tax is levied by the state government and thus can vary depending on the state employees live in. Grove HR will automatically calculate this tax according to each office the admin set up.
The tax is calculated based on the slabs. The admin can click on the “View tax slabs" line to view more or click on the Pencil button to edit. Each state can have different salary slab rates for calculating professional tax.
4. Labor welfare fund
This fund is managed by individual states, the applicable rules are also determined by individual states and union territories. And, if we have offices in multiple states, we must follow the changing rules. Grove HR has automatically updated the rules of the Labor welfare fund depending on the office you have set up.