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Payroll · India

Payroll Software Built for Indian Statutory Compliance

PF, ESI, TDS, and professional tax applied automatically on every payroll run — inside a complete HR platform, not a payroll-only tool.

The Problem

Indian Payroll Is Where Spreadsheets Break

Five statutory heads, two tax regimes, and state rules that differ across your offices — all recalculated by hand every month.

Deductions Get Missed

A wrong PF base, an employee who crossed the ESI wage limit mid-year, or a professional tax slab applied from the wrong state — none of it announces itself in a spreadsheet until it becomes a notice.

Month-End Eats Days

Attendance and loss-of-pay reconciled in one sheet, salary structures in another, deductions in a third, then payslips typed out one by one. Every month, from scratch.

Employees Chase HR

No self-service means every payslip copy, Form 16 query, and reimbursement status check lands in someone's inbox instead of resolving itself.

What Payroll Software Has to Handle in India

Indian payroll is not one calculation, it is several that have to agree with each other. Gross salary is built from basic pay, HRA, conveyance, and allowances. From that, EPF takes 12% of basic plus DA from the employee, with a matching 12% from the employer that splits between the Employees' Pension Scheme and the provident fund against a ₹15,000 wage ceiling. ESI applies to employees earning up to ₹21,000 a month at 0.75% employee and 3.25% employer. Professional tax follows the slab of the state the employee works in, capped at ₹2,500 a year, and is not levied at all in states like Delhi, Haryana, and Uttar Pradesh.

TDS is the one that shifts the most. Each employee picks between the old regime with its deductions and exemptions and the new regime with lower slab rates, and their annual liability has to be spread evenly across twelve months so nobody gets a shock in March. Declared investments, HRA exemption, and mid-year salary revisions all move the number.

Then there are entitlements that accrue quietly in the background. Gratuity under the Payment of Gratuity Act, 1972 builds at 15 days' wages per completed year and becomes payable after five years of continuous service. Statutory bonus applies to employees within the wage threshold set by the Payment of Bonus Act. Earned leave carries forward or gets encashed depending on the Shops & Establishments Act your state runs, and maternity leave is 26 weeks of paid absence that payroll still has to account for.

SnapHRM turns that into setup work you do once. Define salary structures and statutory components per employee, and each month's payroll applies them in a single click — pulling in attendance and approved leave for loss-of-pay, adding approved reimbursements, calculating arrears on any revision, and producing payslips your team can see for themselves. Payroll registers and compliance reports export to Excel in the shape your CA needs for ECR, ESIC, and Form 24Q filings.

Reference

Indian Payroll Statutory Components at a Glance

The deductions and contributions SnapHRM applies on every payroll run.

Component Employee Employer Applies To
Provident Fund (EPF) 12% of basic + DA 12%, split between EPS and EPF ₹15,000 wage ceiling for the mandatory portion
Employee State Insurance (ESI) 0.75% of gross 3.25% of gross Employees earning up to ₹21,000/month
Professional Tax (PT) State slab, up to ₹2,500/year Deduct and deposit Levying states only — not Delhi, Haryana, or UP
TDS on Salary Per income tax slab Deduct and deposit monthly Employees with taxable income, old or new regime
Gratuity Nil 15 days' wages per completed year Payable after 5 years of continuous service
Statutory Bonus Nil 8.33%–20% of eligible wages Employees within the Payment of Bonus Act threshold

Rates and thresholds are set by statute and revised from time to time — confirm current figures with your CA before filing.

How It Works

Your Month-End, in Three Steps

Set up once. After that, payroll is a review, not a rebuild.

1

Define the Salary Structure

Set basic, HRA, conveyance, and allowances, then attach PF, ESI, professional tax, and TDS per employee. Group-wise structures let you apply the same setup to a whole category of staff.

2

Generate in One Click

Attendance and approved leave feed in as loss-of-pay, approved reimbursements are added, arrears on any revision are computed, and every statutory deduction is applied across the company at once.

3

Review, Publish, Export

Check the payroll summary, adjust anything that needs it, and publish payslips to the employee portal. Export the register and compliance reports to Excel for your CA.

Features

Everything Indian Payroll Needs

Included on every plan — including the free one. No payroll add-on, no compliance module to unlock.

PF, ESI, PT & TDS

Configure each statutory head once per employee and SnapHRM applies it every month — including the PF wage ceiling, the ESI wage limit, and the professional tax slab for that employee's state.

Salary Components

Basic, HRA, conveyance, special allowance, and any custom component you need. Define group-wise structures so a new joiner inherits the right setup on day one.

Payslip Generation

Detailed payslips generated automatically after each run, showing earnings, deductions, and net pay. Employees download their own from the self-service portal.

Increments & Arrears

Apply revisions individually or in bulk. When a hike is effective from an earlier date, arrears are calculated and added to the next payroll automatically.

Attendance-Linked Payroll

Loss-of-pay flows in from attendance — ZKTeco biometric punches, GPS-tagged mobile check-ins, or web clock-in — and from approved leave.

Excel Reports for Filing

Export payroll registers, salary breakdowns, and statutory reports to Excel so your accountant has what they need for ECR, ESIC, and Form 24Q filings.

Comparison

Why Not Just a Payroll Tool?

Payroll-only software gets salaries out, then leaves you buying separate tools for everything that feeds into them.

SnapHRM Payroll-Only Tools
PF, ESI, TDS & PT deductions
Leave & attendance feeding payroll Usually separate
Recruiting, expenses & assets included Rarely
Flat pricing, not per-employee Often per-seat
Self-hosted option Almost never

SnapHRM vs RazorpayX Payroll SnapHRM vs Keka SnapHRM vs greytHR SnapHRM vs Zoho People

Pricing

Flat Pricing, Payroll Included

Priced by team size, not per employee. Payroll is on every plan, including the free one.

Free for up to 5 employees

Full payroll and every HR feature. No credit card required.

Paid plans for growing teams:

  • Basic (10 employees) — ₹499/mo
  • Standard (25 employees) — ₹1,490/mo
  • Premium (50 employees) — ₹2,490/mo
  • Enterprise (100 employees) — ₹3,990/mo

More than 100 employees? Talk to us for a custom plan, or run SnapHRM Pro self-hosted with no employee limit.

FAQ

Frequently Asked Questions

Common questions about running Indian payroll on SnapHRM.

Which payroll software is best for Indian companies?

For Indian SMBs the deciding factors are usually statutory coverage, pricing model, and whether payroll sits inside a wider HR system. SnapHRM covers PF, ESI, TDS, and professional tax on every plan, prices by employee tier instead of per employee, and includes leave, attendance, recruiting, expenses, and assets in the same platform. Teams of up to 5 employees use it free.

Does SnapHRM calculate PF and ESI automatically?

Yes. Configure PF and ESI as salary components against each employee and SnapHRM applies the deductions on every payroll run. EPF is calculated at 12% of basic plus DA with the ₹15,000 wage ceiling rule, and ESI at 0.75% employee and 3.25% employer for employees within the ₹21,000 monthly wage limit.

How does SnapHRM handle TDS under the old and new tax regimes?

TDS is computed per employee from their salary structure and the tax regime they have opted for, spread across the financial year so monthly deductions stay even. You can use the free TDS on salary calculator to sanity-check a specific employee before you run payroll.

Can SnapHRM deduct professional tax at different state rates? +

Does SnapHRM generate payslips for employees? +

Can I file PF, ESI, and TDS returns from SnapHRM? +

How does SnapHRM handle salary increments and arrears? +

What does payroll software cost in India? +

Have more questions? Check our knowledge base or contact us.

Run Your Next Payroll in One Click

Free for up to 5 employees. Set up in minutes. No credit card required.