Karnataka Compliant: 6 Acts Covered

Never Miss a
Compliance
Deadline Again

Auto-calculate PF, ESI, Professional Tax, LWF, TDS, and Gratuity for every employee, every pay cycle. Built for Bangalore and Karnataka businesses.

PF 12% auto-filed ESI 3.25% auto-calc PT ₹200/₹300 auto LWF ₹40 auto-deducted
Statutory compliance software Bangalore — PF, ESI, PT, LWF filing dashboard

Powering HR for Bangalore's Fastest-Growing Companies

Nivea
Cycle Agarbathies
Bajaj
Titan Company
Soch
Tata Steel BSL
Gannon Dunkerley
Wipro
500+
Bangalore companies compliant
₹0
Penalties paid by our clients
100%
On-time filing rate
6
Acts covered automatically
Acts Covered

Every Karnataka Compliance Act, Automated

From EPFO challan generation to e-PRERANA PT filing, every statutory obligation is handled automatically every pay cycle.

Provident Fund (PF)

Auto-calculate 12% employee + 12% employer contributions. Generate ECR files, UAN-linked records, and challan, ready to upload directly to the EPFO Unified Portal.

Employee 12% + Employer 12%

ESI (Employee State Insurance)

Auto-apply 3.25% employer + 0.75% employee contribution for gross salary up to ₹21,000. Generate ESIC half-yearly returns and contribution statements automatically.

Employer 3.25% + Employee 0.75%

Professional Tax (Karnataka)

Auto-apply Karnataka PT slabs: ₹200/month for salaries ≥ ₹25,000, and the ₹300 rule in February. Files directly to e-PRERANA portal. Handles the annual ₹2,500 cap.

₹200/month · ₹300 in February

Labour Welfare Fund (LWF)

Auto-deduct ₹20 (employee) + ₹40 (employer) every June and December as mandated by the Karnataka Labour Welfare Fund Act. Generates payment receipts automatically.

Employee ₹20 + Employer ₹40 (bi-annual)

TDS on Salary (Form 24Q)

Auto-calculate TDS based on employee-declared investments (80C, HRA, LTA). Generates Form 16, Form 24Q quarterly returns, and syncs with the TRACES portal. Covers all tax regimes.

Auto-calc · Form 16 auto-generated

Gratuity (Payment of Gratuity Act)

Auto-accrue gratuity liability from day one using the formula (15 × last salary × years) ÷ 26. Triggers after 5 years, tracks up to the ₹25 lakh ceiling. Full liability report always ready.

Auto-accrual · Max ₹25 lakhs
How It Works

From Setup to Fully Compliant in 3 Steps

No manual calculations. No missed deadlines. Every deduction applied correctly from the first pay cycle.

1

Connect Your Payroll

Sync employee data, salary structures, joining dates, and applicable acts. The system detects which employees are covered under PF, ESI, PT, and LWF automatically based on headcount, salary, and location.

Auto-detects coverage thresholds
2

Auto-Calculate Every Deduction

Every pay cycle, the system applies the correct rate for every act: PF 12%, ESI 3.25%, PT ₹200 (₹300 in February), LWF in June & December, TDS on declared investments. Zero manual entry required.

6 acts · Every pay cycle · Zero errors
3

File & Stay Audit-Ready

One-click ECR challan for EPFO, ESIC contribution statements, PT returns to e-PRERANA, Form 24Q for TDS, all pre-filled and ready to submit. Automated reminders 7 days before every deadline. Full audit trail stored permanently.

One-click filing · Permanent audit trail
Why It Matters in Karnataka

Karnataka Has Some of India's Strictest Labour Compliance Penalties

Bangalore is India's most inspected city for labour law compliance. With over 2,500 inspections annually and penalties that compound monthly, manual compliance is a liability your business cannot afford.

Penalty Warning

Late PF payment attracts 12% per annum penal interest + damages between ₹5 and ₹25 per day per employee under Section 14B of the EPF Act. Non-remittance can result in prosecution and imprisonment up to 3 years.

PT Arrears

Karnataka PT late payment attracts 1.25% per month interest on arrears, plus a penalty of up to 50% of the tax amount under the Karnataka Tax on Professions Act, 1976.

We file directly on: e-PRERANA (PT) • EPFO Unified Portal (PF) • ESIC Portal (ESI) • TRACES (TDS) • Karnataka LWF Board (LWF)

2,500+
Labour inspections in Karnataka per year
₹25,000
Minimum penalty for ESI non-compliance
50%
Max penalty on PT arrears + 1.25%/month interest
₹25L
Max gratuity liability per employee after 5 years
3 yrs
Imprisonment for wilful PF non-remittance
20+
Employees triggers mandatory PF coverage
Before vs After

What Changes When Compliance Is Automated

Manual compliance in Bangalore means one missed deadline away from a notice. Here's what our clients stopped worrying about.

Without Compliance Software With HR Software Bangalore
PT calculated manually every month: wrong slab applied, February ₹300 rule missed, e-PRERANA filed late Auto PT slab applied every month: ₹200 standard, ₹300 in February, filed to e-PRERANA before the 20th
PF ECR challan prepared manually in Excel, uploaded late, penal interest compounding every month One-click ECR generation: UAN-linked, challan ready by the 10th, auto-reminder 7 days before due date
Gratuity liability tracked in a spreadsheet: outdated, understated, discovered only when an employee resigns Auto-accrual from day one: real-time gratuity liability report, triggers at 5 years, capped at ₹25 lakhs
Labour inspector visits and HR scrambles to produce registers, challans, and filing proof across 3 portals Complete audit trail always ready: all filings, challans, returns stored permanently, exportable in minutes
Customer Stories

Bangalore Companies That Stopped Worrying About Compliance

From Whitefield IT parks to Peenya factories, finance and HR teams across Karnataka share their experience.

"
★★★★★

We had received two PT notices in 2023 because our accountant kept applying ₹200 in February instead of ₹300. Since switching to HR Software Bangalore, we've had zero PT notices in 14 months. The system just handles it. No one even has to think about it.

SI
Suresh Iyengar CFO, Manthana Technologies 📍 Whitefield · 280 employees · Zero PT notices
"
★★★★★

ESI and LWF filing used to take our HR team 3 full working days every cycle: pulling data, cross-checking, uploading to the portal. Now it takes 20 minutes. The contribution statements are auto-generated and the system files before the deadline without anyone following up.

LV
Lakshmi Venkataraman HR Head, Peenya Garments Ltd 📍 Peenya · 600 workers · 3 days → 20 minutes
"
★★★★★

We had our first labour inspection last October. The inspector asked for PF challans for the last 2 years, ESI returns, and PT payment receipts. I pulled everything from the system in under 10 minutes. He actually complimented us. Zero findings, zero notices.

AC
Arun Chandrasekhar Finance Manager, FastMove Logistics 📍 Electronic City · Passed inspection · Zero findings
FAQ

Common Questions About Statutory Compliance

Everything Bangalore HR and finance teams ask before automating their compliance obligations.

Under the EPF & Miscellaneous Provisions Act 1952, PF is mandatory for all establishments with 20 or more employees. Once a business crosses the 20-employee threshold, it must register with EPFO within 30 days. Importantly, even if headcount later falls below 20, the obligation continues. PF applies to all employees earning up to ₹15,000/month basic salary; contributions on salary above ₹15,000 are voluntary. Employee contribution is 12% of basic+DA, and employer contributes 12% (of which 8.33% goes to EPS and 3.67% to EPF).

As of April 2025, the Karnataka PT slabs are: (1) Up to ₹24,999/month gross salary: NIL (exempt). (2) ₹25,000/month and above: ₹200/month, except in the month of February when it is ₹300. The annual maximum is ₹2,500. PT is deducted from the employee's salary and remitted by the employer to the Karnataka government via the e-PRERANA portal (pt.kar.nic.in) by the 20th of each month. Late payment attracts 1.25% per month interest plus up to 50% penalty on the arrear amount.

ESI contributions are due by the 15th of every month. Missing the deadline triggers simple interest at 12% per annum on the outstanding amount under Section 85B of the ESI Act. Additionally, non-compliance can result in prosecution under Section 85 with fines up to ₹25,000 for a first offence and up to ₹50,000 for repeat offences, along with possible imprisonment. ESIC also conducts inspections and can disallow the employer from availing any ESI benefits for their workers during the period of default.

Yes, this is one of the most common manual errors we fix. The system automatically deducts ₹200 PT for all eligible employees (gross salary ≥ ₹25,000) in all months except February, when it deducts ₹300 to make up the annual total of ₹2,500. This switch happens automatically without any manual intervention. New joiners mid-year are also handled correctly. PT is pro-rated based on the month of joining. The e-PRERANA challan is pre-filled with the correct amounts and filed before the 20th of each month.

Gratuity is calculated using the formula: (15 × last drawn basic salary × years of service) ÷ 26. For employees with variable salary (commission, incentives, or revised CTC), the system always uses the last drawn basic salary at the time of separation, not an average. Gratuity accrual tracking starts from the employee's date of joining, and the system automatically flags employees who cross the 5-year threshold. The maximum gratuity payable is ₹25 lakhs (as per the 2018 amendment). For employees completing 5 years and 6+ months, the service is rounded up to the next full year.

Free Demo

See Zero-Penalty Compliance in Action

We'll walk you through a live demo showing exactly how your PF, ESI, PT, LWF, and TDS are handled, with your own salary data.

  • Live compliance calendar walkthrough
  • ECR challan and e-PRERANA filing demo
  • Gratuity liability report for your team size
  • Audit trail export, ready for inspector visit
  • Dedicated Bangalore-based compliance support

Prefer to talk first?

+91 63589 00873

Book Your Free Demo

Fill in the form and our team will reach out within 2 business hours.

Free Demo No credit card needed
Book Free Demo →