HR & Payroll / Indian Payroll
Payroll & Statutory Compliance, Without the Month-End Rush
Attendance, salary rules and deductions should come together in one clear process. Help your HR team prepare accurate payslips, check what needs attention and move towards payroll with fewer repeated calculations.
Built around suitable Frappe HR and India Payroll capabilities. Every business needs the right setup and checks.
Watch a Payslip Take Shape
Follow one sample employee’s monthly payroll. See how payable days, salary components and illustrative deductions form a draft payslip for HR to review.
Watch a Payslip Take Shape
Example onlyAssumes all three earnings follow payable days on a 30-day month. Your setup may differ.
Illustration: a salary structure folder and a perforated attendance strip on the left feed a draft salary slip in the centre; a deduction review sleeve and an HR review note sit on the right.
Salary structure
Assigned · monthly
- Basic salary₹24,000.00
- HRA₹8,000.00
- Other allowance₹4,000.00
Attendance & leave
30-day example month- Total days
- 30
- Unpaid leave days
- 0
- Payable days
- 30
Salary Slip - Draft
DraftNeeds HR review
Sample employee:Nisha Patel(fictional)
Salary structure Assigned · monthly
- Basic salary₹24,000.00
- HRA₹8,000.00
- Other allowance₹4,000.00
Full-month amounts. The slip uses them once payable days are checked.
Attendance & leave30-day example month
- Total days
- 30
- Unpaid leave days
- 0
- Payable days
- 30
Earnings
- Basic salary₹24,000.00
- HRA₹8,000.00
- Other allowance₹4,000.00
Gross earnings₹36,000.00
Deductions example entries
- Employee PF₹1,800.00
- Professional Tax₹200.00
- Other statutory checks may applyPrevious example entries - not recalculated
Sample total₹2,000.00To recheck
- Gross earnings
- ₹36,000.00
India Payroll extension: ESI, TDS and LWF are checked separately; employer shares are not deducted from pay.
Example net payIllustrative, after these sample entries onlyGross updated - deduction recheck needed
₹34,000.00Not submitted · not paid · not filed
Deduction review
Reviewed for this sample
Deductions need to be rechecked
- PF example
- ₹1,800.00
- Illustrative reviewed PF entry - not a rate calculator
- PT example
- ₹200.00
- Illustrative state-based PT entry - depends on actual state and rules
ESI, TDS and LWF are checked separately. Employer PF and ESI shares are not deducted from pay.
HR review
- Check every line, then submit
- Pay and file separately
Step 1 of 4 · Salary set up
Start with the employee’s assigned salary structure and payroll period.
Step 2 of 4 · Payable days checked
Check payable days from approved leave or attendance settings before using the salary figures.
Step 3 of 4 · Earnings and deductions
Bring earnings and the applicable reviewed deductions onto the payslip.
Step 4 of 4 · Draft ready for HR review
HR checks the draft payslip. Submission, salary payment and statutory filing are separate steps.
Illustrative amounts, not a statutory payroll calculator. Real PF, ESI, PT, TDS and payment days depend on your configured rules and the employee’s circumstances. No real payroll is processed here. Other statutory checks may apply; this illustration is not a complete statutory payroll result.
The important difference: the same records can support a clear review, instead of calculating every employee’s salary again in separate files.
Payroll should not depend on one spreadsheet
In many businesses, HR has attendance in one file, salary details in another and last-minute changes in messages. A small correction can mean checking the whole payroll again.
Attendance to verify
Make sure payable days use the right approved records and rules.
Salary details to check
Keep each employee’s earnings and deductions tied to their salary setup.
Changes to review
Check unpaid leave, extra payments and recoveries before finalising slips.
Reports to prepare
Keep applicable statutory information and payroll records available for review.
The aim is not to remove HR review. It is to help HR spend less time rebuilding figures and more time checking them.
Give every salary a clear structure
Salary details are not the same for every employee. A good payroll setup keeps the right components and rules with each employee’s assigned structure.
- Salary structure
- Define basic pay, allowances, applicable deductions and how each component is calculated.
- Attendance and leave
- Use payable days based on the HR policy and system configuration. Paid and unpaid leave do not have the same effect.
- Extra earnings and recoveries
- Review bonuses, approved reimbursements or advances using the appropriate records and salary components.
- Payslip review
- Show earnings, deductions and the amount to be paid clearly before payroll is submitted.
A small error in employee details or working days can affect the final amount. Review the inputs before approving the result.
Basic salary
- Full month
- ₹24,000.00
- 1 day paid leaveCounts as payable
- ₹24,000.00
- 1 day unpaid leave29 of 30 payable days
- ₹23,200.00
Example only. Which leave is paid depends on your leave types and payroll settings.
Indian payroll needs more than a salary formula
Payroll in India can involve PF, ESI, professional tax, income tax and other employee or employer contributions. The rules are not the same for every employee or state.
PF and ESI
Check scheme applicability, employee details, contribution basis and reports. Keep the employee and employer portions separate.
Professional Tax and other state rules
Review state-based eligibility, payroll location and the applicable schedule. A single fixed deduction does not suit every state.
Income tax and TDS
Consider the relevant tax regime, declarations, payroll period and applicable deductions before calculating salary TDS.
Statutory reports
Keep the required underlying data ready for reports and files, such as PF ECR, ESIC registers or salary TDS reporting, where the installed setup supports them.
Frappe HR payrollStandard
- Salary components and structures
- Payment days from attendance or leave
- Salary slips, drafted then submitted
- Payroll Entry for a group of employees
- Payroll accounting entries
India Payroll extensionInstalled separately
- PF and ESI contributions
- State professional tax and LWF
- Old or new tax regime
- Form 16, 24Q and PF ECR workflows
When installed, compatible and configured for your business.
Frappe HR and the separate India Payroll extension can support these processes with the right configuration. Statutory filing, challan payment and legal compliance still require the applicable checks and steps.
Talk About Our Payroll SetupCatch missing payroll details before month-end
A missing salary assignment or an unresolved attendance issue is easier to handle before HR prepares the final slips. See how a simple review step can make the remaining work clearer.
Month-end payroll review
Illustration: a clipboard with a month-end payroll review sheet listing four checks, beside a salary structure folder and an HR review note.
Month-end payroll review
Sample review only- Salary structureAssigned
- Payable days reviewedNeeds attentionMissing payroll input - review needed
- Statutory details reviewedReviewed
- Draft checkedOn hold
Needs attention: payable days
Check the missing itemAll four sample checks reviewed
Confirm leave/attendance record before proceeding
The sample information is ready for HR to review. This is not approval of a real salary slip or statutory filing.One or more details need review before this example should move forward.
Process monthly payroll for a growing team
Payroll work grows when employees are spread across offices, factories and branches. The process should stay organised even when different teams have different pay structures.
- Payroll EntryAhmedabad branch · July (example)
- Salary slipsDrafts for each employee
- HR reviewChanges checked, then submitted
- Accounting entrySalary expense and payroll payable
- Bank paymentA separate, reviewed step
Pay employees by the right group
Prepare payroll for a company, branch, department or designation where supported by the setup.
Check changes before submission
Review unpaid leave, additional salary items and deductions employee by employee.
Keep payslips traceable
Use proper records, review permissions and salary slip history.
Connect payroll with accounts
Create appropriate payroll expense and payable accounting records using the supported payroll workflow.
Creating salary slips or accounting entries is not the same as transferring salaries to employee bank accounts.
Finance & AccountingAccounting Automation & Bank Reconciliation
Useful for offices, factories and multi-branch businesses
Office and service teams
Keep different salary structures, approved leave and monthly pay records organised.
Factories
Review shifts, attendance and payable days before payroll. Overtime and holiday rules must follow your company policy and configured workflow.
Field and multi-branch teams
Keep employee and branch information linked to payroll processing. Location-based attendance requires its own suitable check-in and policy setup.
The right payroll process should work for your workforce, not force every employee into one pay rule.
How YourOrderBook can help
Payroll is a sensitive business process. We help you assess and configure a practical Frappe HR solution around the way your company works.
Understand your current payroll
Map attendance, salary structures, HR checks, statutory deductions and payment steps.
Configure the right setup
Review employee records, salary components, roles, permissions and applicable India Payroll options.
Test real scenarios safely
Check paid/unpaid leave, salary changes, relevant deductions, employer contributions and payroll review steps with your team.
Prepare the handover
Define what HR, accounts and employees will do after implementation, including what requires manual review.
Start with one monthly payroll cycle and identify the corrections your team repeats most often.
Review My Payroll ProcessRelated processes that should stay connected
HR & Payroll Management
The bigger employee journey, from joining and attendance to leave, payroll and self-service.
Attendance & GPS Tracking
Reliable attendance inputs make payroll reviews easier. Check-in rules and data corrections belong to the attendance process.
Shift Scheduling & Overtime
Shift assignments and approved overtime can affect the payroll inputs. The calculation still depends on policies and setup.
Employee Self-Service & Expense Claims
Once payroll submits a salary slip, employees with the right access can view their own copy instead of asking HR.
Finance & Accounting
Reviewed payroll expenses, payables and payment entries should have a clear accounting handoff.
Questions about payroll and statutory compliance
Can Frappe HR calculate employee salaries?
Can payroll include PF and ESIC deductions in India?
Can I generate salary slips for all employees together?
Will unpaid leave reduce salary automatically?
Does the system support Professional Tax for different states?
Can employees choose between old and new tax regimes?
Can it prepare Form 16 and salary TDS reports?
Can payroll include factory overtime and shift details?
Does creating a payslip mean the employee has been paid?
Is this suitable for a small Indian business using Excel payroll?
Make the next payroll run easier to review.
Tell us how your employees are paid today, what your HR team checks each month and where payroll changes create delays. We’ll help you identify what can be connected first and which Frappe HR and India Payroll capabilities fit your needs.
No promise of automatic legal compliance or live salary disbursement. The right setup depends on your company and applicable rules.