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Every business in India has to get payroll right with the state - Professional Tax that
changes in every state, Labour Welfare Fund on its own schedule, EPF caps, ESI ceilings, dozens of exemptions, and two competing tax regimes. Until now, that meant configuring the same rules by hand. India Payroll is a Frappe HR extension that already knows the map. It comes bundled with Frappe HR and slots straight into the payroll module, so there's no second system to keep in sync.
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 all 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, including Maharashtra's half-yearly quirk. 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 that is easy to overlook.
India Payroll applies ESI with the current wage ceiling, including the raised ceiling for employees with disabilities, so the right people are covered and the right contributions land on every salary slip.
Provident Fund, the flexible way
Provident Fund is rarely just the flat statutory rate. Voluntary top-ups, higher earners
contributing on actual wages, and EPFO's rounding rules all have to line up to the rupee, or the filing bounces.
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, and EPFO-correct rounding so the numbers match exactly. All of it computed automatically on the salary slip.
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 the way the law intends, so no
employee gets an unfair result right at the boundary of a slab. Income tax is worked out correctly across the year and reflected straight in payroll.
A tax regime comparator, built in
Old regime or new? Most employees can't tell which one leaves them better off, and it usually becomes Payroll Manager's responsibility to set employee's chosen tax regimes 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, handles HRA exemption for metro and non-metro cities, lets people declare their exemptions, and writes the chosen regime back to payroll. 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. The numbers you calculated flow straight into the reports you actually have to submit.
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.