Payroll Setup

Statutory rule sets

Review and update PF, ESI, Professional Tax, TDS and other statutory rates as effective-dated versions — with a source for every number.

  • Payroll Admin
5 min read
On this page (7 sections)
  1. What a statutory rule is
  2. Review your rules
  3. Update a rate (add a new version)
  4. Add a new rule
  5. India: what’s calculated
  6. Troubleshooting
  7. Frequently asked questions

What a statutory rule is

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  1. Payroll
  2. Statutory Rule Sets

Each rule holds one statutory value — a rate, ceiling, threshold or slab table — for your country or for a specific state, with an effective date and a source citation. Pay runs use whichever version is in force on the pay date.

Rule key
The rule’s name, such as epf_employer_rate or professional_tax_slab.
Jurisdiction
The state the rule applies to. Blank means National. A state rule overrides the national rule with the same key for employees working in that state.
Formula shape
How the amount is calculated — see the table below.
Wage base
What the rate applies to: Gross Wages, or the earnings carrying a wage-base tag such as epf_wage_base.
Line code and label
The payslip line the rule produces, such as “EPF - Employee Contribution”.

Review your rules

The list shows each rule’s key, formula shape, jurisdiction, current value and effective date. Search by rule key or state, and click a row to see its current value, effective period, source and full version history.

Update a rate (add a new version)

Rules are never edited or deleted — you add a new version from the date the change takes effect, and past pay runs keep the old value.

  1. Click the rule, then Add New Version of This Rule. You need payroll create permission.

  2. The rule key, jurisdiction, formula shape, wage base and line codes are locked. Enter the new values — percentages as percent, so 12 means 12%.

  3. Set Effective From to the date the new value applies. Leave Effective To blank.

  4. Enter the Source / Citation, for example the circular or notification number and date.

  5. Click Save Rule Version. The previous version ends automatically the day before.

Add a new rule

Use Add Rule Version to add something that isn’t set up yet — for example a state’s Labour Welfare Fund.

  1. Enter the Jurisdiction exactly as the state appears in the Work State list (for example “Maharashtra”, not “MH”), or leave it blank for a national rule.

  2. Enter a Rule Key using lowercase letters, numbers and underscores, such as labour_welfare_fund.

  3. Choose the Formula Shape and Wage Base, then fill in the fields for that shape.

  4. Check the employee and employer line codes and labels — they’re suggested from the rule key.

  5. Set Effective From and Source / Citation, then click Save Rule Version.

Formula shapeCalculatesTypical use
% of Wage BaseEmployee and employer % of the wage base, with an optional per-period ceiling.EPF
% of Wage Base, Up to a ThresholdApplies only while the wage base is at or under the threshold.ESI
% of Wage Base, Up to an Annual CapStops once year-to-date wages reach the cap.US Social Security
Extra % Above an Annual ThresholdApplies only to year-to-date wages above the threshold.US Additional Medicare
Slab Amount by Wage BaseA fixed monthly amount by wage band, with an optional different February amount.Professional Tax
Progressive % Brackets by Wage BaseTax brackets applied to annualised wages.Income-tax style schedules
% of ComponentA percentage of the amount another rule produced.Splitting a contribution
None (Custom Value)A setting read by dedicated logic rather than a payslip formula.TDS slabs, LOP day count

India: what’s calculated

Statutory itemHow it’s calculated
EPF (employee and employer)% of the earnings tagged epf_wage_base, up to the ceiling in the rule.
ESI (employee and employer)% of gross wages while they’re at or under the threshold.
Professional TaxMonthly slab amount for the employee’s Work State, with the February amount where set.
TDS (income tax)New tax regime: projected annual taxable salary, standard deduction, slab tax, 87A rebate and cess, spread over the remaining periods of the financial year.

Gratuity, EDLI and PF administration charges aren’t calculated automatically.

LOP day-count convention

By default, working days are calendar days minus week offs and holidays. To start from a fixed number of days per month instead, add the loss_of_pay_day_count_convention rule with formula shape None and a raw JSON value such as {"convention":"fixed_days_per_month","fixed_days":26}. Week offs and holidays are still subtracted. Always include fixed_days — without it, calendar days are used.

Troubleshooting

ProblemWhat to do
Professional Tax isn’t deducted for an employeeCheck the employee’s Work State on Salary Structure Assignment and that a Professional Tax rule exists with exactly that state name as Jurisdiction.
“This rule was updated by someone else since you loaded it.”Refresh and try again.
“A rule version with this exact rule/jurisdiction/effective date already exists.”Pick a different Effective From date.
“A new version of an existing rule must keep the same …”Formula shape and wiring can’t change between versions. Create a new rule key instead.
“Component code(s) … already belong to rule …”Each rule needs its own payslip line codes. To add Professional Tax for another state, contact support so it’s set up to appear correctly in employer liability.

Frequently asked questions

Open the rule, click Add New Version of This Rule, enter the new value, the date it takes effect and the source, and save. Earlier pay runs keep the old rate.

No. Rules keep a full history; add a new version to change a value.

Statutory rule sets | Mocha HRMS Help Center