What are Statutory Components in Payroll? A Simple Guide

Statutory Components

STATUTORY COMPONENTS

Statutory Components

Configure every statutory component your payroll needs — PF, ESI, PT, LWF, Gratuity, NPS — with region-aware rules and payment trackers.

Overview
👥 WHO USES THIS
▸Payroll admins enabling statutory programs
▸Finance tracking statutory liabilities
▸HR ensuring region-specific compliance
✨ WHAT YOU'LL ACHIEVE
▸Enable all statutory components
▸Apply region-specific rules
▸Track payments and filings centrally

Tax and Statutory Compliances → Statutory Components

The Statutory Components section in payroll is used to define and manage salary components that are mandated by law for compliance with government regulations. These include contributions and deductions such as Provident Fund (PF), Employees’ State Insurance (ESI), Professional Tax (PT), Income Tax (TDS), and any other statutory payments applicable as per the selected country.

These components are automatically applied during payroll processing based on the employee’s eligibility and configured rules, ensuring statutory compliance. The system uses predefined formulas and thresholds as per government norms, but they can be customized within the permitted legal framework to align with organizational requirements.


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