What a salary sheet has to get right
A monthly salary sheet is more than gross minus deductions. Pay has to be pro-rated for loss-of-pay days, PF and ESI have their own wage bases and ceilings, professional tax follows state slabs, and the employer's own contributions have to be worked out and deposited on time. This template does each step in its own column so you can see exactly how every rupee of net pay was reached.
PF: employee and employer shares
The employee contributes 12% of PF wages (Basic + DA). The employer also pays 12%, split between the pension scheme (EPS, 8.33% of wages up to ₹15,000, so at most ₹1,250 a month) and the provident fund (the balance). On top, the employer pays EDLI insurance (0.5% of wages up to ₹15,000) and admin charges (0.5%). Many employers restrict PF to wages of ₹15,000; others contribute on full wages. Settings lets you choose either. The PF challan (ECR) is due by the 15th of the following month.
ESI and professional tax
ESI covers employees whose gross wages are up to ₹21,000 a month. The employee pays 0.75% and the employer 3.25% of gross wages, deposited by the 15th of the next month. Once an employee is covered, contributions continue until the end of that contribution period even if pay rises above the ceiling.
Professional tax is a state levy with its own monthly slabs, and some states don't levy it at all. The template ships with example slabs (including a higher February instalment, as some states use) that you replace with your own state's.
The 50% wage rule under the labour codes
Since 21 November 2025 the Code on Wages, 2019 defines wages as Basic + DA (and retaining allowance), and adds back any allowances that exceed 50% of total pay. That matters for PF, gratuity and bonus. The register shows 'Wages under Code' for every employee and flags those whose allowances exceed half their pay. In Settings you can choose whether PF is calculated on Basic + DA or on these Code wages.
TDS on salary
From 1 April 2026 TDS on salary falls under section 392 of the Income-tax Act, 2025, and the quarterly statement is Form 138 (earlier 24Q). The register takes each employee's monthly TDS from the Employees sheet; use the Salary TDS Calculator template to work it out. TDS deducted in a month is deposited by the 7th of the next month, and by 30 April for March.
Free vs Pro
The free edition runs the full monthly payroll. The Pro edition adds a payslip generator, a bank transfer list for salary payments, and a PF ECR and ESI contribution working so uploading to the EPFO and ESIC portals takes minutes.
Written by Prakash Bagchi, finance professional and founder of PB Lab. Last reviewed .