How to Configure Statutory Components in CrmLeaf
All editions. Requires the Payroll add-on module to be enabled for your account by an Administrator. Which statutory items you configure depends on the countries in which you employ people.
Availability: All editions. Requires the Payroll add-on module to be enabled for your account by an Administrator. Which statutory items you configure depends on the countries in which you employ people.
Overview
Statutory components are the payroll items required by law rather than by your own pay policy. CrmLeaf handles tax deducted at source, Provident Fund, Employees' State Insurance, Professional Tax and Gratuity as statutory items, and produces reports per statutory type. This article explains how to configure them and what regional detail to confirm before you go live.
CrmLeaf calculates and reports using the values you configure. The values themselves are set by government authorities, so they must be confirmed before every live cycle in which they may have changed.
How It Works
Statutory items are configured as components, included in the salary structures that are liable for them, applied during the payroll run, and then reported per statutory type and turned into filing outputs.
Configure statutory component → Include in salary structure → Run payroll → Statutory report → Filing output
- Each statutory item is a component in the employee's salary structure, so it appears on the payslip.
- Payroll reports exist per statutory type, which is how you check a month's liability before filing.
- Government compliance forms for Provident Fund, Employees' State Insurance and Professional Tax are produced from the same processed payroll data.
- Gratuity is handled separately as an end-of-service calculation as well as being a statutory concern.
Who Can Use This Feature?
Administrator
- Configure statutory components for the countries in which the organisation operates.
- Include statutory components in the correct salary groups and employee salary records.
- Review statutory reports after each payroll run.
- Produce statutory filing outputs for the organisation's advisor or filing agent.
This functionality is available only to Administrators.
Prerequisites
- The Payroll add-on module enabled for your account and your role.
- Payroll settings, salary components and salary groups configured.
- Your organisation's statutory registration details for each country of operation.
- Current rates, wage thresholds and deadlines confirmed in writing by a qualified compliance advisor.
For Administrators
Step 1: Establish which statutory items apply
What to do: List the statutory items you are liable for in each country where you employ people, together with the current rate, the wage base each rate applies to, and any eligibility threshold.
What to verify: Your list is confirmed by a qualified compliance advisor and dated, so you know when it was last checked.
Step 2: Create the statutory components
What to do: Create a component for each statutory item and identify it as that statutory type, so payroll reporting groups it correctly. Enter the rate or amount you confirmed in step 1, then select Save.
What to verify: Each component computes against the correct wage base, for example basic pay rather than gross pay where the rule requires it.
Step 3: Add the components to the right salary structures
What to do: Include each statutory component in the salary groups and employee salary records that are liable for it. Employees in different countries, or above an eligibility threshold, may need different structures.
What to verify: No employee carries a statutory deduction they are not liable for, and none is missing one they are.
Step 4: Test on a single payroll run
What to do: Generate payroll for one department and reconcile each statutory deduction on a sample of payslips against a manual calculation.
What to verify: Employee and employer portions are both accounted for as your advisor expects.
Step 5: Review the statutory reports
What to do: Open the report for each statutory type and reconcile the totals for the period before any filing output is produced.
What to verify: The period's statutory totals match the payslips and your own expected liability.
Field and Option Reference
| Field / Option | Description | Required |
|---|---|---|
| Statutory type | Identifies the component as tax deducted at source, Provident Fund, Employees' State Insurance, Professional Tax or Gratuity, which determines the report it appears in. | Yes |
| Rate or amount | The percentage or fixed value applied, as confirmed with your compliance advisor. | Yes |
| Wage base | The salary value the rate is calculated on, for example basic pay or gross pay. | Yes |
| Eligibility threshold | The wage limit above or below which the item applies, where the statutory rule sets one. | No |
Regional Statutory Reference
The following are documented reference points for CrmLeaf's target markets. They are provided so you know what to configure and what to confirm. They are not advice, and they are not a substitute for a current confirmation from your own advisor.
| Country | Statutory items and documented detail |
|---|---|
| India (INR) | Provident Fund administered by the Employees' Provident Fund Organisation (EPFO): employee 12% of basic pay, employer 12% (8.33% to the Employees' Pension Scheme and 3.67% to the Employees' Provident Fund), applicable to establishments with 20 or more employees. Employees' State Insurance administered by the Employees' State Insurance Corporation (ESIC): employee 0.75% of gross pay, employer 3.25%, where gross pay is up to ₹21,000 per month. Professional Tax is levied at state level and varies by state, with a maximum of ₹2,500 per year in Maharashtra. Tax deducted at source under the Income Tax Act 1961, filed quarterly as Form 24Q. Provident Fund deposits are due by the fifteenth of the following month; late deposits attract interest at 12% per annum under Section 7Q of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and damages under Section 14B of up to 25% of arrears. |
| United Arab Emirates (AED) | Wages are paid through the Wages Protection System using approved financial institutions, monitored by the Ministry of Human Resources and Emiratisation (MOHRE). United Arab Emirates nationals are subject to contributions to the General Pension and Social Security Authority (GPSSA). End-of-service gratuity is 21 working days' pay per year for the first five years and 30 working days' pay per year thereafter, based on the last basic salary. Employment is governed by Federal Decree-Law No. 33 of 2021. Value added tax is 5%, administered by the Federal Tax Authority. |
| Saudi Arabia (SAR) | Contributions to the General Organization for Social Insurance (GOSI): Saudi nationals 21.5% in total (employee 9.75%, employer 11.75%); expatriates 2% employer occupational hazard contribution. End of service under Article 84 of the Saudi Labour Law is half a month's pay per year for the first five years and one month's pay per year thereafter. Saudisation quotas are administered under Nitaqat. Value added tax is 15%, administered by the Zakat, Tax and Customs Authority (ZATCA). |
| Qatar (QAR) | Contributions to the General Retirement and Social Insurance Authority (GRSIA) for Qatari nationals. Wages are paid through the Wages Protection System, monitored by the Ministry of Labour. There is no personal income tax. Gratuity is a minimum of three weeks' basic salary per year of service under Article 54 of the Labour Law. Employment is governed by Law No. 14 of 2004. |
| Kuwait (KWD) | Contributions to the Public Institution for Social Security (PIFSS) for Kuwaiti nationals only: employee 7.5%, employer 11%. Indemnity is 15 days' pay per year for the first five years and one month's pay per year thereafter. Employment is governed by Law No. 6 of 2010. No value added tax is currently in force. |
| Bahrain (BHD) | Contributions to the Social Insurance Organisation (SIO): Bahraini employees 19% in total (employee 7%, employer 12%); expatriates 3% employer only. Value added tax is 10%, administered by the National Bureau for Revenue. Employment is governed by Law No. 36 of 2012. |
Expected Result
Statutory components are configured, included in the correct salary structures, applied on generated payslips, and visible in the payroll report for each statutory type.
Important Notes
- Menu names and their position can differ between product editions and can be customised for your account, so your sidebar may not match these paths exactly. Use Search or your Quick Access items if you cannot find a screen.
- Payroll is a paid add-on module. Confirm it is included in your plan.
- Contribution rates, wage thresholds, eligibility limits, forms and filing deadlines are set by the relevant government authorities, change over time, and must be confirmed with a qualified compliance advisor before every live payroll run in which they may have changed.
- CrmLeaf calculates using the rates you configure. It does not update statutory rates for you and does not verify that a configured rate is current.
- CrmLeaf produces the statutory filing outputs. It does not submit returns or contributions to any authority on your behalf.
- The regional reference in this article is documentation, not tax or legal advice. Obtain advice from a qualified professional in the relevant jurisdiction.
- Registration and eligibility rules matter as much as rates. For example, Social Insurance Organisation contributions in Bahrain must be registered from the first month of employment, and retroactive registration triggers back-payment plus penalties.
Common Scenarios
Example: an employee crosses the Employees' State Insurance wage limit. After an increment, an employee's gross pay rises above the documented ₹21,000 per month limit. The Administrator confirms the correct treatment with the organisation's compliance advisor and updates the employee's salary structure accordingly before the next run.
Example: employing in two countries. An organisation with staff in India and Saudi Arabia configures Provident Fund and Employees' State Insurance components for its India structures, and General Organization for Social Insurance contributions for its Saudi structures, keeping the two salary groups separate.
Example: state-level Professional Tax. Because Professional Tax is levied at state level in India and varies by state, the Administrator configures the component to match the state of each employment location rather than using one value for the whole organisation.
Troubleshooting
| Issue | Possible Cause | Resolution |
|---|---|---|
| A statutory deduction does not appear on payslips | The statutory component is not in the employee's salary structure | Add the component to the salary group or employee salary record, then generate payroll again. |
| The statutory report shows no data | No component is identified with that statutory type, or payroll has not been processed for the period | Set the statutory type on the component and process payroll for the period. |
| Contribution amounts are wrong | The configured rate, wage base or threshold does not match the current statutory rule | Confirm the current values with your compliance advisor, correct the component, and generate payroll again. |
| An employee is deducted an item they are not liable for | The employee is assigned a salary group intended for another jurisdiction or wage band | Assign the correct salary structure to the employee. |
Frequently Asked Questions
Does CrmLeaf keep statutory rates up to date automatically?
No. CrmLeaf calculates using the rates you configure. Keeping those rates current is the organisation's responsibility, with advice from a qualified professional.
Does CrmLeaf file my returns?
No. CrmLeaf produces the filing outputs from your payroll data. Submission to the relevant authority is done by you or your filing agent.
Which statutory items does CrmLeaf handle?
Tax deducted at source, Provident Fund, Employees' State Insurance, Professional Tax and Gratuity are handled as statutory items, with reports per statutory type.
Can one account cover employees in several countries?
Yes. Use separate salary groups so that each group carries only the statutory components relevant to that jurisdiction.
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