Statutory rates

What it does

Statutory rates is where your hotel enters its own provident fund, ESI, professional tax and income tax (TDS) figures. Payroll then computes exactly those.

The page ships empty. Nothing is deducted until you fill it in, and a hotel that fills in nothing gets a payroll run with no statutory lines - which is the right answer for a hotel that is not a registered employer.

These numbers are yours

Upstay computes what you enter here and nothing else. The rates, the ceilings, the slabs and whether any of this applies to your hotel at all are between you and your accountant, and the filing is theirs. The hints on the form name a commonly used value as a convenience. They are not advice.

Who can use it

Admins (owners).

Where to find it

Payroll in the rail, under People, then Statutory rates.

How to enter your rates

1. Open Statutory rates.
2. Under Provident fund, enter the Employee share, the Employer share and the Wage ceiling.
3. Under ESI, enter the same three.
4. Enter In effect from if the rates start on a date.
5. Under Professional tax, click Add a slab for each band. Enter Monthly gross over, Up to (leave blank for “and above”) and the Tax a month. A slab with a tax of 0 deducts nothing.
6. Under Income tax (TDS), click Add a slab for each band. Enter Yearly income over, Up to and the Rate. Add a Standard deduction and a Cess if your accountant uses them.
7. Tick the confirmation that these rates are yours.
8. Click Save.

A rate counts only when all three parts are filled in. Half a rate saves as nothing rather than as a guess.

How a change affects past months

A month you have already finalised keeps the rates it used. Changing anything here only affects months you have not run yet.

Tips & good to know

• Save stays off until something changes, like every other settings card.
• Above the ESI wage ceiling nobody is covered at all, rather than being deducted on the ceiling.
• Each TDS rate applies only to the part of the year’s income inside its slab. Upstay multiplies this month’s gross by 12. It does not adjust for earlier months or for tax-saving declarations, so your accountant settles the difference when filing.
• A slab row that is half filled in, or whose Up to is not above its over, is left out when you save. Remove slab takes a row out.
• Gratuity is your own formula too: days per year, after how many years, and whether it is worked out on basic or on gross.

Troubleshooting

• No statutory lines on the payslip → Nothing is filled in here, or your hotel does not have statutory deductions switched on.
• The confirmation is asked for again → It is asked once. If it reappears, the rates were cleared.

Related features

• Salary & payroll
• Exits & final settlement