INDPayroll provides a comprehensive and flexible framework to configure all salary components—earnings, deductions, reimbursements, and statutory obligations. Each component can be customized to match company policy, industry standards, and Indian statutory requirements.
Key Salary Components
| Component | Type | Description | Calculation Notes / Best Practices |
| Basic | Earning | The core fixed wage component forming the foundation of salary structure. | Ideally 40–50% of CTC; the primary basis for PF, ESI, HRA, Gratuity, and statutory calculations. |
| HRA | Earning | House Rent Allowance with conditional tax exemptions. | Tax benefit: 50% of Basic for metro cities, 40% for non-metro; employee must submit rent proofs. |
| Conveyance | Earning | Transport allowance for daily commute to office. | Exempt up to ₹1,600 per month as per IT rules. |
| Special Allowances | Earning | Flexible allowance zone covering medical, meal, telecom, or custom benefits. | Can be structured as taxable or partially exempt based on company rules. |
| Bonus / Incentives | Earning | Performance-based or statutory bonus payouts. | May be monthly, quarterly, or annual; ensure minimum bonus rules if applicable. |
| Overtime (OT) | Earning | Compensation for extra hours worked beyond standard duty. | Calculated hourly or daily using Basic + DA. Ensure OT approval workflow is enabled. |
| PF | Deduction | Employee’s contribution to EPF. | Standard 12% of Basic + DA; ensure wage ceiling and voluntary PF are configured correctly. |
| ESI | Deduction | Employee State Insurance contribution. | Applicable if Gross ≤ ₹21,000; auto-calculates 0.75% employee contribution. |
| TDS | Deduction | Tax deducted at source based on income tax laws. | Uses real-time projections, exemptions, and declarations for monthly accuracy. |
| PT | Deduction | State-wise Professional Tax. | INDPayroll auto-applies correct slabs based on location. |
| Other Deductions | Deduction | Includes loan EMIs, salary advances, penalties, or custom deductions. | Ensure proper approval trail is documented. |
Tip:
Always validate statutory components at the beginning of every financial year to reflect new government updates.