Payroll setup

Before you start

• Only workspace admins can see and use payroll.
• Payroll is built for India: PF, ESI, professional tax and TDS. Structures for the United States and Singapore are marked coming soon.
• Set up holidays and leave first. Payroll uses them to count working days and paid leave.

Create a salary structure

1. 1Go to Settings → Payroll. The page is called Salary Structures.
2. 2Click Create structure.
3. 3Type a Structure name, for example “Staff grade A”.
4. 4Enter Basic % of CTC and HRA % of Basic.
5. 5Tick PF applicable and ESI applicable as needed.
6. 6Keep Country as India.
7. 7Check the Live preview (₹50,000 CTC), then click Create structure.

Example: Basic is 50% of CTC and HRA is 40% of Basic. For a monthly CTC of ₹50,000, Basic is ₹25,000, HRA is ₹10,000 and the Special allowance is ₹15,000.

Give a person a salary

Each person has a Salary & Payroll page. It shows Current salary, the bank account, the salary history and tax declarations.

1. 1Open the person's Salary & Payroll page.
2. 2Click Edit (or Assign/Edit salary).
3. 3Choose the Salary structure.
4. 4Enter CTC Monthly and Effective from.
5. 5Enter Bank account number, Bank IFSC and Bank name.
6. 6Choose the Tax regime: New Regime or Old Regime.
7. 7Choose the State for PT (professional tax).
8. 8Click Save.

• The IFSC must look like 4 letters, then 0, then 6 digits, for example HDFC0001234. Otherwise you see “Invalid IFSC format”.
• An admin cannot set their own salary. Another admin must do it.
• A new salary with a later Effective from date applies from that date. The history table shows Effective From, Effective Until, CTC Monthly, Structure and Changed By.

How bank details are protected

Bank account numbers and IFSC codes are stored encrypted. Screens show only the last 4 characters. Full numbers appear only in the bank file you download after a payroll run is approved.

Who is included in a payroll run

A payroll run includes every person with a salary whose Effective from date is on or before the 1st of that month.

How pay is calculated

• Gross: monthly CTC split into Basic, HRA and Special allowance.
• Loss of pay (LOP): gross divided by working days, times LOP days.
• PF: 12% of Basic for the employee and 12% for the employer, scaled to the days paid, when PF applies.
• ESI: 0.75% employee and 3.25% employer, when ESI applies and gross after LOP is ₹21,000 or less.
• Professional tax: by the state's slab.
• TDS: an estimate from the yearly salary, the tax regime and the declarations.
• Salary advance: approved advances are recovered.