Payroll Center
End-to-end monthly payroll processing with full Indian statutory compliance -- PF, ESI, Professional Tax, and TDS handled automatically.
The Payroll Center is the heart of Fuzen HRMS Pro's compensation management. It handles everything from computing monthly salaries to generating statutory filings -- all in one place. You can reach it by clicking Payroll Center in the sidebar or navigating to /a/payroll_center.
The module is organized into three tabs:
- Run Payroll -- compute, review, and approve the current month's payroll
- Payroll History -- view past payroll runs, download payslips, and export statutory files
- Salary Structures -- define reusable templates that control how CTC is split into salary components
Tab 1: Run Payroll
This is where you process each month's payroll. The tab gives you a complete view of what every employee will be paid, broken down by earnings and deductions.
Summary Cards
Four summary cards at the top of the page give you an at-a-glance picture of the current payroll run.
Total Employees
The number of active employees included in this payroll run. Employees on unpaid leave or terminated before the pay period are excluded.
Total Gross
The sum of all gross salaries (Basic + HRA + Conveyance + Medical + Special allowances) for every employee in the run.
Total Deductions
The combined total of all statutory deductions: PF (employee share), ESI (employee share), Professional Tax, TDS, and any other configured deductions.
Total Net Pay
The final take-home amount across all employees -- calculated as Total Gross minus Total Deductions. This is what you'll disburse.
Controls
Above the preview grid, you'll find the controls that drive the payroll process:
- Month / Year Picker -- select the pay period you want to process. The system defaults to the current month, but you can pick any previous month if you need to run a late payroll.
- Compute Payroll -- click this button to calculate salaries for all active employees. The system uses each employee's CTC, assigned salary structure, attendance records, approved leave, and statutory rules to produce the full breakdown.
- Approve & Lock Run -- once you've reviewed the numbers and confirmed everything is correct, click this to finalize the payroll. A locked run cannot be edited or recomputed.
Preview Grid
After you click Compute Payroll, the Preview Grid displays a detailed per-employee breakdown. Each row shows one employee; each column shows a salary component or deduction.
| Column | What It Shows |
|---|---|
| Employee Name | Full name of the employee |
| Basic | Basic salary component -- the foundation for PF and gratuity calculations |
| HRA | House Rent Allowance -- typically 40-50% of Basic, used for rent-related tax exemptions |
| Conveyance | Conveyance / transport allowance for commuting expenses |
| Medical | Medical allowance for healthcare-related expenses |
| Special | Special / flexible allowance -- the balancing component that absorbs the remainder of CTC after other heads are allocated |
| Gross | Total of all earning components (Basic + HRA + Conveyance + Medical + Special) |
| PF (Employee) | Employee's Provident Fund contribution -- 12% of Basic, capped at Rs.1,800/month when Basic is Rs.15,000 or below |
| ESI (Employee) | Employee State Insurance contribution -- 0.75% of Gross, applicable only when monthly Gross is Rs.21,000 or below |
| Professional Tax | State-specific deduction -- varies by state (typically Rs.200/month in most states) |
| TDS | Income Tax Deducted at Source -- calculated based on the employee's projected annual income, chosen tax regime, and investment declarations |
| Net Pay | Final take-home pay: Gross minus all deductions (PF + ESI + Professional Tax + TDS) |
How to Run Monthly Payroll
Follow these steps each month to compute, review, and finalize payroll for your organization.
Navigate to Payroll Center from the sidebar. You'll land on the Run Payroll tab by default.
Select the Month and Year for the pay period using the picker at the top. Verify you have the correct period selected -- processing the wrong month is a common mistake.
Click Compute Payroll. The system calculates salary for all active employees based on their CTC, assigned salary structure, attendance records, approved leave, and statutory rules. This may take a few seconds depending on your team size.
Review the Preview Grid carefully. Check each employee's earnings breakdown (Basic, HRA, Conveyance, Medical, Special) and deductions (PF, ESI, Professional Tax, TDS). Look for anything unusual -- a zero where there should be a value, or a deduction that seems too high or too low.
Verify the summary cards at the top: Total Employees, Total Gross, Total Deductions, and Total Net Pay. Cross-check the employee count against your active roster and confirm the totals look reasonable compared to previous months.
If everything looks correct, click Approve & Lock Run. The system will ask you to confirm -- this action is irreversible. Once confirmed, the payroll run is locked and no further edits can be made.
Once locked, payslips are automatically generated for each employee. You can find them in the Payroll History tab along with bank files and statutory export options.
Indian Statutory Deductions Explained
Fuzen HRMS Pro automatically calculates all mandatory statutory deductions under Indian labor law. Here's what each one means and how it's applied.
| Deduction | Rate | Applicability | Paid By |
|---|---|---|---|
| PF (Provident Fund) | 12% of Basic | All employees (statutory for Basic up to Rs.15,000; voluntary contributions allowed above this threshold) | Employee 12% + Employer 12% |
| ESI (Employee State Insurance) | 0.75% of Gross | Only applicable when monthly Gross salary is Rs.21,000 or below | Employee 0.75% + Employer 3.25% |
| Professional Tax | Varies by state | All salaried employees (rates differ by state -- typically Rs.200/month in most states) | Employee only |
| TDS (Tax Deducted at Source) | Per income tax slabs | All employees whose projected annual income exceeds the basic exemption limit | Employee only |
Tab 2: Payroll History
The Payroll History tab gives you a record of every payroll run your organization has processed. Use it to look up past months, download payslips, and generate statutory filing documents.
History Table
Each row in the table represents one payroll run with the following columns:
| Column | Description |
|---|---|
| Month / Year | The pay period this run covers |
| Status | Draft -- computed but not yet approved; Approved -- reviewed and locked; Locked -- finalized and payslips generated |
| Total Gross | Sum of all gross salaries for that run |
| Total Net | Sum of all net (take-home) pay for that run |
| Approved Date | The date and time when the run was approved and locked |
| Actions | View details, download payslips, and export statutory files |
Available Downloads
Once a payroll run has been approved and locked, you can download the following files from the Actions column:
Payslips (PDF)
Individual payslip documents for each employee, showing their complete earnings and deductions breakdown for the month. Share these with employees as proof of salary payment.
Bank Salary File
A formatted file ready for upload to your bank's NEFT/RTGS portal. Contains each employee's bank account details and net pay amount for bulk salary transfer.
PF ECR File
Electronic Challan cum Return file for EPF (Employee Provident Fund) filing. Upload this directly to the EPFO portal to report monthly PF contributions.
ESI Contribution File
ESI contribution statement for filing with the ESIC portal. Contains employee-wise ESI contribution details for the month.
Tab 3: Salary Structures
Salary structures are reusable templates that define how an employee's CTC (Cost to Company) is split into individual salary components. Instead of manually entering each component for every employee, you assign a structure and the system handles the math.
How Structures Work
Each salary structure defines the percentage allocation for these components:
- Basic -- the base salary, used as the foundation for PF and gratuity calculations
- HRA (House Rent Allowance) -- typically a percentage of Basic, eligible for tax exemption if the employee pays rent
- Conveyance Allowance -- for commuting and transportation expenses
- Medical Allowance -- for healthcare-related expenses
- Special Allowance -- the flexible component that absorbs the remaining CTC after all other heads are allocated
When you assign a structure to an employee and enter their monthly or annual CTC, the system automatically calculates the rupee value of each component based on the defined percentages.
Common Salary Structures
Most organizations need just two or three structures. Here are the most common configurations:
Standard CTC
The most widely used structure, balanced across all components.
| Basic | 40% of CTC |
| HRA | 20% of CTC |
| Conveyance | 10% of CTC |
| Medical | 10% of CTC |
| Special | 20% of CTC |
Basic Heavy
Higher Basic allocation -- increases PF contributions and gratuity but also raises the PF deduction.
| Basic | 50% of CTC |
| HRA | 25% of CTC |
| Conveyance | 5% of CTC |
| Medical | 5% of CTC |
| Special | 15% of CTC |
Assigning a Structure to an Employee
To assign a salary structure, go to the employee's profile in the Employee Directory, open the Compensation tab, and select the appropriate structure from the dropdown. Enter the employee's CTC, and the system will calculate the component-wise breakdown automatically.
After Payroll is Approved
Once you approve and lock a payroll run, several actions become available. Here's your post-approval checklist:
Download payslips -- generate individual PDF payslips for every employee and distribute them via email or the employee self-service portal.
Generate the bank salary file -- download the bulk NEFT/RTGS file and upload it to your bank's corporate internet banking portal to initiate salary transfers.
Generate the PF ECR file -- download the Electronic Challan cum Return file and upload it to the EPFO (Employees' Provident Fund Organisation) portal for monthly PF filing.
Generate the ESI contribution statement -- if any employees fall under ESI eligibility (Gross up to Rs.21,000/month), download the contribution file and submit it to the ESIC portal.