Provident Fund (PF)
PF is a retirement savings scheme. Both employer and employee contribute 12% of basic salary. The employer's share is split—8.33% goes to EPS (pension) and 3.67% to the EPF account. Filing is monthly via the EPFO portal.
Employee State Insurance (ESI)
ESI provides health and disability benefits. It applies to employees earning up to ₹21,000/month. Employee contribution: 0.75%. Employer contribution: 3.25%. Filing is bi-annual.
Tax Deducted at Source (TDS)
TDS on salary is governed by Section 192 of the Income Tax Act. The employer estimates annual tax liability and deducts it monthly from salary. The rate depends on the employee's total income and chosen tax regime (old vs. new).
How Finkey Helps
Finkey automatically calculates PF, ESI, and TDS deductions for each employee based on their salary structure and applicable slabs. It generates the required challans and reports, making compliance straightforward.
