HR Module
Payroll & Salary
EPF & ESI Formulas

EPF & ESI Calculation Formulas

Source: SalaryCalculatorUtility.cs

EPF (Employee Provident Fund)

EPF Worked Example

ComponentValue
Basic Salary₹18,000
DA₹5,000
PF Applicable Salary₹23,000 → capped at ₹21,000
Employee EPF (12%)ROUND(21000 × 0.12) = ₹2,520
Employer EPS (3.67%)ROUND(21000 × 0.0367) = ₹771
Employer EPF2520 - 771 = ₹1,749

ESI (Employee State Insurance)

ESI Worked Example

ComponentValue
Gross Salary₹19,500 (≤ ₹21,000 → eligible)
Employee ESI (0.75%)ROUND(19500 × 0.0075) = ₹146
Employer ESI (3.25%)ROUND(19500 × 0.0325) = ₹634

Configuration Reference

// From UMApplicationSettingsBO
HR_PFLimitAmount         = 21000   // PF salary cap
HR_EmployeeEPFPercentage = 12      // Employee PF %
HR_EmployerEPSPercentage = 3.67    // Employer pension %
HR_ESIEligibilityLimit   = 21000   // ESI cutoff salary
HR_EmployeeESIPercentage = 0.75    // Employee ESI %
HR_EmployerESIPercentage = 3.25    // Employer ESI %
HR_BasicPayId            = (ID)    // EarningDeduction ID for Basic
HR_DAId                  = (ID)    // EarningDeduction ID for DA
HR_EPFId                 = (ID)    // EarningDeduction ID for EPF
HR_ESIId                 = (ID)    // EarningDeduction ID for ESI