Help Category: User Manual

Salary Components

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.

Employee Profile Management

  • Edit/update personal, job, and salary information.
  • Assign or update salary templates.
  • Deactivate or terminate employees while preserving historical payroll data for audits.

Tip: Always back up data before mass edits or terminations.

Bulk Upload Employees

  • Download the employee import template in CSV format.
  • Fill in all required fields accurately.
  • Upload the CSV and validate.
  • Correct any flagged errors before final submission.

Use Case: Useful for onboarding large batches of new hires in bulk, especially during campus recruitment drives.

Add Employee

Step-by-Step Instructions:

  1. Navigate to Employees > Add New Employee.
  2. Personal Details: Full Name, DOB, Gender, Email, Contact Number, Address.
  3. Job Details: Designation, Department, Date of Joining, Work Location, Reporting Manager.
  4. Salary Structure: Basic, HRA, Conveyance, Special Allowances, OT rates, Bonus eligibility.
  5. Statutory IDs: PF, ESI, PAN, PT, UAN.
  6. Bank Details: Account Number, IFSC, branch.
  7. Click Save to create the profile.

Best Practices:

  • Double-check statutory IDs and bank details to avoid salary and compliance issues.
  • Maintain reporting hierarchy correctly for approval workflows.

Multi-Organisation & Multi-Branch Setup (New Section)

INDPayroll supports multi-entity payroll management, ideal for enterprises operating across multiple cities, states, or business verticals.

Navigate to Company Settings → Multi-Organisation Setup.

A. Organizational Hierarchy Configuration

Define multi-level corporate structures:

  • Parent Company
  • Subsidiaries
  • Branches
  • Business Units
  • Departments

Each entity can have its own:

  • Payroll rules
  • Statutory configurations
  • Attendance policies
  • Holiday calendars
  • Reporting heads

B. Add and Configure Additional Organizations

For each new entity, specify:

  • Organization name & type
  • Location & jurisdiction (mandatory for PT, PF office codes, etc.)
  • Independent or shared payroll cycle
  • Separate bank accounts for salary disbursement
  • Entity-wise statutory registration numbers (PF, ESI, PT, TAN)

C. Assign Employees to Entities

Employees can be mapped to:

  • Primary organization
  • Branch
  • Department
  • Reporting manager

Transfer rules allow:

  • Inter-branch transfers
  • Inter-entity migration with audit history
  • Salary structure carry-over or recalculation based on entity policies

D. Entity-Wise Reporting & Permissions

Each organization can maintain:

  • Custom dashboards
  • Separate pay runs
  • Dedicated approvers

Role-based access ensures that:

  • HR/Payroll managers see only their assigned entities
  • Leadership sees consolidated analytics across all entities

E. Benefits of Multi-Organisation Setup

  • Scalability for growing businesses
  • Fully compliant state-specific statutory handling
  • Centralized control with decentralized operations
  • Consolidated reports for finance and audits
  • Standardized policy application across branches

Statutory Configuration

A critical part of setup ensuring adherence to Indian labor laws and tax regulations.

Navigate to: Company Settings → Statutory Compliance

A. Provident Fund (PF)

Configure EPF parameters:

  • Employee & Employer PF Contribution % – Standard 12% or custom setup.
  • PF Wage Ceiling – ₹15,000 or full-wage PF as per policy.
  • UAN Integration – Auto-linking with employee UAN numbers.

B. Employee State Insurance (ESI)

Enable ESI for eligible employees:

  • Automatic Eligibility Check – Based on salary threshold (as per current law).
  • Auto-Deduction – Ensures accurate monthly contributions.
  • ESI Report Downloads – For filing and audit.

C. Professional Tax (PT)

State-wise PT rules:

  • Slab-Based Deductions – Auto-applies based on salary.
  • State-level Variations – Maharashtra, Karnataka, West Bengal, etc.
  • PT Certificates & Reports – Auto-generated for each cycle.

D. TDS Configuration (Income Tax)

Define tax deduction settings:

  • Tax Slabs – Old regime, new regime.
  • Exemptions & Deductions – HRA, Section 80C, 80D etc.
  • Investment Declaration Window – Employee submission timeline.
  • Automatic TDS Calculation – Based on projections and proofs.

E. Statutory Document Uploads

Upload your compliance documents:

  • Form 16 (Part A & B)
  • Form 24Q
  • Challan PDFs
  • PF/ESI/GST certificates

F. Compliance Alerts

INDPayroll provides proactive reminders for:

  • PF, ESI, PT, TDS filing deadlines
  • Challan payments
  • Annual returns
  • Policy expiry notifications

Category: EPFO & ESI

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Subcategory: Employee Self-Service & Engagement

Subcategory: Introduction to Payroll

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Subcategory: Company Setup

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