Statutory compliance — PF, ESI, and TDS

Why statutory compliance matters

Missing or incorrect statutory filings carry significant penalties in India. Dapplon automates PF, ESI, and Professional Tax calculations within payroll so that your compliance obligations are met with every payroll run.

Provident Fund (PF)

PF applies to all employees earning basic salary up to ₹15,000/month (employee contribution). For employees earning above this threshold, contribution is optional and configurable.

Steps to configure PF:

1. Go to Settings > Payroll > Statutory
2. Toggle Provident Fund to ON
3. Set the employee contribution rate (standard: 12% of Basic)
4. Set the employer contribution rate (standard: 12%, split across EPF and EPS)
5. Enter your company's PF Registration Number (PFAN)
6. Click Save

After each payroll run, Dapplon generates the PF Challan (ECR file) under Payroll > Statutory Reports > PF.

Employees' State Insurance (ESI)

ESI applies to employees whose gross salary is ₹21,000/month or less.

Steps to configure ESI:

1. In Settings > Payroll > Statutory, toggle ESI to ON
2. Enter your ESI Registration Number
3. Set contribution rates (employee: 0.75%, employer: 3.25% of gross as of 2026)
4. Click Save

Dapplon automatically includes or excludes employees based on their gross salary each month.

Tax Deducted at Source (TDS)

TDS is calculated based on the employee's income tax liability for the financial year, spread across the remaining months.

1. Go to Payroll > Tax Settings
2. Set the financial year
3. Choose the tax regime (Old or New) — employees can declare their preference via the Employee Portal
4. Dapplon calculates TDS using the projected annual income including all components and perquisites
5. After each run, download Form 16 Part A from Payroll > Statutory Reports > TDS