> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vritti.works/llms.txt
> Use this file to discover all available pages before exploring further.

# Indian Statutory Compliance

> Overview of automated calculations for EPF, ESI, Professional Tax (PT), TDS, and Loss-of-Pay (LOP) deductions.

# Statutory Compliance Coverage

Vritti automates payroll deductions and calculations in full accordance with Indian labor laws and tax regulations, eliminating manual error during monthly payroll runs.

## Employees' Provident Fund (EPF)

### Standard Deductions

* **Employee Contribution**: 12% of basic wage plus Dearness Allowance (DA).
* **Employer Contribution**: 12% split between Employee Pension Scheme (EPS - 8.33% capped at ₹1,250) and EPF (3.67%).
* **Statutory Ceiling**: Configurable application of the standard ₹15,000 monthly basic wage ceiling.

### Admin Controls

* Enable or disable EPF per employee based on eligibility.
* Automated generation of EPF ECR text files ready for upload to the EPFO portal.

## Employee State Insurance (ESI)

### Applicability & Rates

* Applies to employees with a gross monthly wage of ₹21,000 or lower.
* **Employee Contribution**: 0.75% of gross wages.
* **Employer Contribution**: 3.25% of gross wages.

### Automated Eligibility Rules

If an employee's salary increases above ₹21,000 mid-contribution period, Vritti maintains ESI status until the end of the statutory contribution period as mandated by ESIC regulations.

## Professional Tax (PT)

### State-Specific Tax Slabs

Professional Tax varies by state across India. Vritti supports configurable state PT rules:

* **Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana, Gujarat, Madhya Pradesh**, and others.
* Gender-based slab variations (e.g., Maharashtra PT exemptions for female staff earning under specified thresholds).
* February month slab adjustments accounted for automatically.

## Tax Deducted at Source (TDS) & LOP

### Income Tax Deductions

* Support for Old and New Tax Regimes.
* Automated monthly TDS deduction calculation based on declared investments and projected annual earnings.

### Loss of Pay (LOP) Integration

* Direct integration between biometric attendance summaries and salary processing.
* Automated calculation of sandwich leave rules, half-day deductions, and late arrival penalties based on institutional policy.