Pay your staff right. File with MRA without fear.

1. PAYEPAYE this monthHow much income tax to deduct from an employee this pay period.

   FA 2026 s.7(v)PAYE tax bands 2026-2027The Finance Act 2026 replaced the income tax bands from 1 July 2026: the first Rs 500,000 is tax free, the next Rs 500,000 is taxed at 10%, the next Rs 11,000,000 at 20%, and everything above Rs 12,000,000 at 35%.

   Tax free, per year

   Rs 500,000

   The next Rs 500,000 a year

   10%

   The next Rs 11,000,000 a year

   20%

   Above Rs 12,000,000 a year

   35%

2. CSGCSG, NSF and training levyCSG is the social contribution, NSF the National Savings Fund. What you deduct from the employee and what you pay on top, on the basic wage.

   CSG threshold, per month

   Rs 50,000

   SCSB Act Sch. 1 Pt IICSG threshold: Rs 50,000 a monthPart II of the First Schedule sets the monthly earnings figure that switches CSG from the lower to the higher rates: Rs 50,000.

   CSG up to the threshold, employee and employer

   1.5% / 3%

   SCSB Act s.4(1)(a)CSG ratesBelow the threshold the employee pays 1.5% and the employer 3%. Above it the employee pays 3% and the employer 6%.

   CSG above the threshold, employee and employer

   3% / 6%

   SCSB Act s.4(1)(b)CSG ratesBelow the threshold the employee pays 1.5% and the employer 3%. Above it the employee pays 3% and the employer 6%.

   NSF, employee and employer

   1% / 2.5%

   NSF Act s.5NSF contributionsEvery employer pays the NSF contribution set in the First Schedule for every employee, and deducts 1% of the basic wage from the employee. The Schedule sets the employer share at 2.5%, rounded to the nearest rupee.

   NSF insurable wage, per month

   Rs 4,580 to Rs 29,710

   MRA Employers' GuideNSF insurable wage floor and ceilingMRA publishes each year the lowest and highest monthly wage on which NSF is charged. For income year 2025-2026 the monthly figures are Rs 4,580 (floor), Rs 2,910 (floor for a household worker) and Rs 29,710 (ceiling). They are updated each July.

   HRDC training levy, employer

   1.5%

   HRD Act s.18HRDC training levy: 1.5% of basic wageEvery employer pays a training levy of 1.5% of each employee's basic wage, excluding overtime, bonuses and allowances. Household workers are excluded.

3. PRGFPRGF contributionThe retirement gratuity contribution you pay for each worker every month.

   PRGF, employer, on monthly remuneration

   4.5%

   PRGF Regs reg. 3PRGF contribution rate: 4.5%From 1 January 2025, every employer pays 4.5% of monthly remuneration into the PRGF for each worker. The lower phase-in rates for small businesses ended on 31 December 2024.

   No PRGF above a monthly basic of

   Rs 200,000

   WRA s.87PRGF: who is a worker, and the Rs 200,000 capFor the PRGF, a worker drawing a monthly basic wage above Rs 200,000 is not covered. Job contractors, public officers, non-citizens and workers with an equal or better private pension scheme are also outside the fund.

Not on the payslip, free too:TDS on a paymentDo I need an auditor?