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India Payroll

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Indian payroll, by the rules

Payroll Compliance Simplified

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Every business in India has to comply to the rule and regulations stated by the wages code while running their payroll. And these rules aren't exactly straightforward. Professional Tax has a different rule and Labour Welfare Fund has a different frequency in states that levy it. Configuring the rules by hand is tiresome and messy even for the power users. India Payroll solves this very problem. It is a Frappe HR extension that comes preconfigured with salary components, let's you enable statutory deductions directly from payroll settings, and gives you reports that are ready to file.

Compliances covered in India Payroll

Professional Tax across every state

Professional Tax changes in every state - different slabs, different rules, and a few states with quirks of their own. Encoding each one by hand is slow and easy to get wrong.

India Payroll knows the map. Professional Tax across 15+ states with their individual slabs. You set the work state, and it deducts the right amount on every salary slip.

Labour Welfare Fund, on each state's schedule

Labour Welfare Fund keeps its own calendar - some states collect monthly, some half-yearly, some once a year - and the contribution split differs too.

India Payroll handles Labour Welfare Fund across 14 states on whatever schedule each one keeps, applying the correct employee and employer contributions automatically when they fall due.

ESI, with the ceilings built in

ESI has wage ceilings that decide who is covered, and a raised ceiling for employees with disabilities.

India Payroll applies ESI with the current wage ceiling, including the raised ceiling for employees with disabilities, and it's easy to configure right from salary structure assignments.

Provident Fund, the flexible way

Provident Fund is not just a flat statutory rate. Employees add voluntary top-ups, higher earners contribute on actual wages.

India Payroll handles the full range: the statutory 12%, voluntary top-ups as a fixed

amount or a percentage, an option to contribute on actual wages for higher earners, all correctly rounded.

Surcharge with marginal relief

For high earners who earn at the edge of a surcharge slab, a small raise can trigger a punitive jump. The law has relief for exactly this, Frappe HR did not have a way to calculate it.

India Payroll calculates surcharge and marginal relief according to rules, so no

employee gets an unfair result right at the boundary of a slab.

A tax regime comparator, built in

Most employees can't tell which of the two tax regime leaves them better off, and it usually becomes Payroll Manager's responsibility to set employee's chosen regime in their salary structure assignments.

India Payroll gives employees a self-serve tax regime comparator. It works out the year's tax under both the old and new regimes, recommends the cheaper one, lets people declare their exemptions, and writes the chosen regime back to salary structure assignment. Payroll managers can just send emails to notify employees to set their tax regime right from the salary structure assignment.

Registers that are ready to file

Compliance doesn't end at calculating the deduction. Someone still has to produce the returns in the exact format each authority expects.

India Payroll gives you EPF, ESIC, and LWF registers in one click, formatted for EPFO

ECR, ESI returns, and state LWF filings, no manually editing reports.

Also in Frappe HR v16

Complimentary features in Frappe HR that go along with India Payroll

Employee CTC Break Up Report

Employer Contribution Salary Components

Built with the community, for the community.   

Frappe HR is built to help your team work in sync. With contributions and ideas from the community, v16 offers better ways to manage your resources.