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.
Powering HR for Bangalore's Fastest-Growing Companies
Every Karnataka Compliance Act, Automated
From EPFO challan-ready data to e-PRERANA PT reports, key statutory workflows are organized 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. Prepares e-PRERANA-ready data and handles the annual ₹2,500 cap.
₹200/month · ₹300 in FebruaryLabour Welfare Fund (LWF)
Auto-deduct ₹20 (employee) + ₹40 (employer) every June and December as mandated by the Karnataka Labour Welfare Fund Act. Generates contribution reports for review.
Employee ₹20 + Employer ₹40 (bi-annual)TDS on Salary (Form 24Q)
Auto-calculate TDS based on employee-declared investments (80C, HRA, LTA). Prepares Form 16 and Form 24Q data for review. Covers all tax regimes.
Auto-calc · Form 16 auto-generatedGratuity (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 lakhsFrom Setup to Fully Compliant in 3 Steps
No manual calculations. No missed deadlines. Every deduction applied correctly from the first pay cycle.
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 thresholdsAuto-Calculate Every Deduction
Every pay cycle, the system applies configured rates for PF, ESI, PT, LWF, and TDS on declared investments, reducing manual entry before payroll review.
6 acts · Every pay cycle · Zero errorsFile & 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.
Filing-ready reports · Permanent audit trailKarnataka Has Some of India's Strictest Labour Compliance Penalties
Bangalore employers face regular labour-law scrutiny, and manual compliance can create avoidable risk when records, challans, registers, or deadlines are missed.
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.
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)
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 factoHR Bangalore |
|---|---|
| PT calculated manually every month: wrong slab applied, February ₹300 rule missed, e-PRERANA filed late | PT slab applied every month: ₹200 standard, ₹300 in February, with e-PRERANA-ready data before filing |
| PF ECR challan prepared manually in Excel, uploaded late, penal interest compounding every month | ECR-ready generation: UAN-linked reports with reminders before the 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 ready: filings, challans, and returns stored for review and export |
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 PT notices because our accountant kept applying ₹200 in February instead of ₹300. With factoHR Bangalore, the February adjustment is clearly flagged before payroll approval.
ESI and LWF reporting used to take our HR team a lot of time every cycle: pulling data, cross-checking, and preparing portal uploads. Now contribution statements are generated in one place for review.
During a labour inspection, we needed PF challans, ESI returns, and PT payment receipts. Having organized records and exports in one system made the review much easier.
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 help catch. The system applies ₹200 PT for eligible employees (gross salary ≥ ₹25,000) in all months except February, when it applies ₹300 to make up the annual total of ₹2,500. New joiners mid-year can be handled based on the month of joining. The e-PRERANA challan data is prepared for review before filing.
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.
See Zero-Penalty Compliance in Action
We'll walk you through a live demo showing how your PF, ESI, PT, LWF, and TDS workflows can be handled with your salary data.
- Live compliance calendar walkthrough
- ECR-ready and e-PRERANA-ready report demo
- Gratuity liability report for your team size
- Audit trail export, ready for inspector visit
- Dedicated Bangalore-based compliance support
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