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Payroll Management

End-to-end salary processing with Indian statutory compliance

Complete payroll processing with configurable salary components, formula-based calculations, PF/ESI/PT/TDS auto-computation, loan EMI deductions, arrears handling, and payslip PDF generation with QR verification.

How It Works

Step-by-step workflow — watch the process flow

1
Step 1

Configure Components

Admin sets up salary components (Basic, HRA, DA, etc.) with calculation types: Fixed, Percentage, Formula, or Remaining.

2
Step 2

Create Template

Build salary template with component percentages/formulas. E.g., Basic = 40% of CTC, HRA = 50% of Basic.

3
Step 3

Assign Salary

Assign template to employee with their CTC. System auto-calculates all component breakdowns.

4
Step 4

Create Payroll Cycle

Admin creates monthly payroll cycle (e.g., 'January 2026'). System picks up all active employees.

5
Step 5

Process Payroll

System auto-calculates: earnings (prorated for attendance), PF, ESI, PT, TDS, loan EMIs, adjustments, and arrears.

6
Step 6

Review & Approve

HR reviews payslip summaries, department-wise cost breakdown, and statutory totals. Then approves.

7
Step 7

Mark as Paid

After bank transfer, mark cycle as Paid. Payslips become available to employees. Arrears marked as PAID.

What You Can Customize

Configure the module to match your organization's policies

1

Salary Components

Create unlimited components with 4 calculation types: Fixed amount, Percentage of another component, Formula (supports IF/MIN/MAX), or Remaining (CTC minus all other components).

2

PF Configuration

Enable/disable PF. Set employee/employer rates (default 12%/12%), wage ceiling (default ₹15,000), wage type (Ceiling, Full Basic, Custom).

3

ESI Configuration

Enable/disable ESI. Set employee/employer rates (default 0.75%/3.25%), wage limit (default ₹21,000).

4

Professional Tax

Enable/disable PT. Select state (Maharashtra, Karnataka, etc.). PT is auto-calculated based on state slab rates.

5

TDS / Income Tax

Enable/disable TDS. Set default tax regime (Old/New). System projects annual tax and deducts monthly TDS. Employees can submit tax declarations for exemptions.

6

Pay Cycle

Choose MONTHLY, BIWEEKLY, or WEEKLY. Set pay day and attendance cutoff date.

7

LOP Calculation

Choose Calendar Days or Working Days for Loss of Pay calculation method.

8

Gratuity

Enable/disable gratuity provisioning. Set rate (default 4.81% of Basic).

9

Payslip QR

Enable/disable QR code on payslip PDFs for verification.

Key Features

What makes this module powerful

Auto PF/ESI/PT/TDS calculation
Formula engine: IF(), MIN(), MAX() support
Loan EMI auto-deduction from payroll
One-time adjustments (bonus, penalty, etc.)
Salary arrears auto-detected and included
Payslip PDF with QR verification
Bulk salary import via Excel
4-tab reports: Cost, Statutory, Analytics, Trends

Frequently Asked Questions

Common questions about Payroll Management

Q:How is PF calculated?

PF is calculated on Basic salary: Employee contribution = 12% of Basic (capped at ₹15,000 wage ceiling by default), Employer contribution = 12% of same base. Both rates and ceiling are configurable.

Q:How does TDS work?

System calculates projected annual income tax based on the employee's salary, tax regime (Old/New), and submitted tax declarations. This annual tax is divided by remaining months in the financial year to get monthly TDS.

Q:What happens if salary is revised mid-month?

If you revise salary with a backdated effective date, the system auto-detects arrears for already-processed months. These arrears go through an approval flow and are then included in the next payroll cycle.

Q:Can I add a one-time bonus?

Yes! Use Payroll Adjustments. Create an adjustment of type 'EARNING' for the specific cycle and employee. It will be included as a line item in their payslip.

Q:How are loan EMIs handled?

When an employee has an active loan, pending EMIs due within the payroll period are auto-deducted during processing. The repayment is marked as paid and the loan balance is decremented.

Q:Can different employees have different salary structures?

Yes, each employee gets their own salary structure from a template + CTC. Individual components can be overridden per employee without affecting others.

Q:What is the 'Remaining' calculation type?

The Remaining type automatically calculates the component as CTC minus all other components. This is typically used for Special Allowance to ensure total CTC adds up correctly.

Need more help with Payroll Management?

Our team can walk you through the setup and configuration.