Process accurate salaries, auto-deduct PF, ESI, TDS, and professional tax, generate salary slips, and stay compliant with Indian labour laws and GCC WPS requirements — all within ERPNext.
ERPNext Payroll is a comprehensive salary management system that automates the monthly payroll cycle — from salary structure definition to salary slip generation, statutory deduction calculation, bank payment advice, and accounting journal entry — all within the same ERP that handles your HR, attendance, and finance. It eliminates the common disconnect where payroll is processed in a standalone system and then manually re-entered into accounting.
For Indian businesses, ERPNext handles the full statutory compliance burden automatically: Provident Fund (PF) at 12% employee and 12% employer on basic salary, Employee State Insurance (ESI) at 0.75% employee and 3.25% employer for eligible employees, TDS on salary based on the declared tax regime (old or new), and professional tax by state slab. PTEC and PTRC calculations for Maharashtra and other states are supported. PF challan data and ESI return data are exportable for portal submission.
Salary structures in ERPNext are fully configurable — you define earnings components (Basic, HRA, Special Allowance, LTA, Medical) and deductions (PF, ESI, PT, TDS, Loan EMI) with formula-based calculation. One salary structure can apply to hundreds of employees, with individual overrides for variable pay, ad hoc deductions, and incentives. Employees with different CTC structures — staff, management, factory workers — can each have their own salary structure.
For GCC businesses in Oman, UAE, and Saudi Arabia, ERPNext generates WPS (Wage Protection System) salary files in the SIF format required for bank submission. Gratuity calculation per GCC labour laws, end-of-service benefits, and WPS compliance reports are included. Quantbit Technologies configures salary structures, statutory components, and payroll journals for both India and GCC clients from a single ERPNext instance.
From salary structure design to statutory filing data — complete payroll in one system.
Define flexible salary structures with formula-based earnings and deductions for every employee category.
Statutory deductions auto-calculated and posted — no manual spreadsheet calculations needed.
Accurate income tax deduction at source based on declared investments and tax regime.
Generate and email salary slips for all employees in one batch run at month-end.
Generate WPS SIF files for on-time salary transfer compliance in Oman, UAE, and Saudi Arabia.
Salary journal entries posted automatically to accounting — with cost centre allocation per employee.
All the statutory reports and management summaries you need — exportable for portal submission.
Component-wise payroll summary for all employees for a month — the primary payroll audit document and management report.
HR / Finance / AuditEPFO ECR file for employee and employer PF contribution upload — ready for EPFO Unified Portal submission.
HR / ComplianceESI employer and employee contribution data for ESIC portal return filing — employee-wise challan data.
HR / ComplianceQuarterly TDS deduction data per employee in the format required for Form 24Q return filing with the income tax department.
Finance / TaxAnnual TDS certificate for each employee — generated from salary slip and investment declaration data for the financial year.
Employee / FinanceGratuity accrual per employee based on service tenure — for financial provision and audit purposes (India and GCC).
Finance / HRPF, ESI, professional tax, and TDS are calculated automatically on every salary slip. No more Excel formulas, no more manual double-checking — statutory accuracy is built into the system.
Leave without pay is deducted automatically from salaries based on attendance records. No manual LWP calculation and no disputes — the data trail from biometric to salary slip is complete and auditable.
When payroll is confirmed, accounting entries are posted automatically — salary expense to cost centres, PF and ESI to liability accounts, and net pay to the bank account. Finance never waits for payroll data.
GCC businesses avoid WPS penalties by generating the SIF file directly from ERPNext payroll and submitting it to the bank on time. Gratuity provisions are calculated and tracked automatically.
Employees access their salary slips, tax projections, and investment declaration forms through the ERPNext employee portal — reducing HR's administrative workload for routine payroll queries significantly.
Every salary slip, PF deduction, and TDS payment is logged with user and timestamp. Tax auditors and labour inspectors receive a complete, exportable compliance trail without any data reconstruction effort.
Define and validate all salary structures with component formulas and statutory configurations before processing the first payroll. Mid-month structure changes cause re-calculation and audit issues that are time-consuming to resolve.
Configure ERPNext to send investment declaration requests to employees at the start of each financial year. Timely declarations ensure TDS is deducted correctly throughout the year — avoiding large year-end adjustments and employee grievances.
Always run a trial payroll run and review the salary register for anomalies before finalising and posting. Quantbit configures a checker-maker workflow so a second HR user approves the payroll before accounting entries are posted.
Set a firm attendance cut-off date (e.g., 25th of the month) and ensure all leaves and attendance are marked before processing payroll. Late attendance corrections after salary is processed require complex reversal entries.
Generate and upload the WPS SIF file to the bank at least 3 working days before the contractual salary payment date. WPS processing time varies by bank — late uploads result in delayed salary payment and WPS violations.
Reconcile the PF liability account in ERPNext with the EPFO challan paid amount every month — before the next payroll run. Unreconciled PF liabilities compound quickly and create audit complications at year-end.
ERPNext Payroll serves Indian companies that need PF, ESI, TDS, and professional tax automation with EPFO and ESIC portal-ready exports, and GCC employers in Oman, UAE, and Saudi Arabia who require WPS-compliant salary processing, gratuity calculation per labour law, and multi-currency payroll in OMR, AED, and SAR. Quantbit Technologies, certified Frappe partner with offices in Pune and Muscat, configures payroll for manufacturing companies, trading firms, IT companies, and service businesses in both markets.
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Quantbit Technologies configures salary structures, statutory compliance, WPS payroll, and payroll accounting for Indian and GCC businesses — with an in-house HR and finance implementation team.