This guide explains the payslip math shown on Payslips and view_payslip.php.
Earnings (monthly structure)
- Basic Salary — fixed monthly amount from salary structure.
- HRA — House Rent Allowance (fixed monthly).
- TDA — Transport Allowance (fixed monthly).
- Total Earnings = Basic + HRA + TDA (full month before LOP).
Attendance adjustments
- Working Days — days in month excluding weekoffs/holidays (and pre-join days).
- LOP Days — absent + unpaid leave + half-day equivalents.
- Effective Paid Days — days salary is paid for; earnings are prorated: component × (effective paid days ÷ working days).
- LOP Deduction = Total Earnings − prorated earnings (shown as its own line).
- Overtime — approved OT hours × hourly basic rate × policy multiplier (from Operations → Overtime).
Gross Pay
Gross Pay = prorated Basic + HRA + TDA + Overtime Earnings.
Statutory deductions (employee)
- PF — 12% of PF wages (Basic, capped at company PF ceiling) if PF applicable.
- ESIC — 0.75% of gross if gross ≤ ESIC ceiling and ESIC applicable.
- Professional Tax — state slab (Maharashtra / Karnataka) or flat amount from Payroll Settings.
- TDS — monthly estimate from annual taxable income using employee tax declaration and new/old regime slabs.
Net Pay
Net Pay = Gross Pay − (PF + ESIC + PT + TDS) + Gems Bonus (if Gems Calculation is enabled on the company).
Example
Basic ₹30,000 + HRA ₹12,000 + TDA ₹2,000 = ₹44,000 total earnings. After 4 LOP days, LOP deduction ≈ ₹5,714. Overtime +₹600. Gross ≈ ₹38,886. PF −₹3,600, PT −₹200 → Net ≈ ₹35,086 (+ gems if any).
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Verify salary structure
Employee salary page must have correct Basic, HRA, TDA before generating payslips. Basic also syncs to Employees.BaseSalary.
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Verify statutory flags
PF Applicable and ESIC Applicable on employee statutory tab. UAN required for PF ECR export.
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Verify tax declaration
For meaningful TDS, enter 80C, 80D, HRA rent paid, and regime on the tax declaration tab.
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Generate and compare
After Generate Payslips, open Payslips sidebar and confirm each section matches expectations. Re-run only after fixing attendance or structure — locked periods should not be regenerated.
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Export compliance
Reports → PF / ESIC uses real payslip line items (Basic, PF, ESIC, gross, net) from approved payslips for the period.