Payroll Components: Salary, Deductions, EPF, ESI, PT & More

Payroll Components in Bharat Payroll: Your Complete Guide

Bharat Payroll caters to all essential payroll components to ensure accurate salary disbursements and adherence to regulations. This helps businesses to stay transparent and efficient.

Employee Payroll Structure

Employee payroll structure is the organised layout of all elements of an employee’s salary which includes- earnings, allowances, and mandatory deductions. Bharat Payroll allows the customisation of payroll structures based on employee hierarchy, department, and location to ensure compliance with regulatory standards.

Gross Salary

Gross salary is the total income before any deductions. It contains the base salary, bonuses, allowances, and overtime ( OT ). Bharat Payroll HRMS dashboard provides a transparent breakdown of gross salary, helping employees understand their total earnings before any deductions.

Basic Salary Components

Basic salary forms the core of an employee’s earnings and generally accounts for 35-65% of the total Cost to Company (CTC) . Bharat Payroll allows organizations to configure basic salary proportions that best align with their industry standards and practices.

Net Salary Calculation

Net salary is the actual amount ( take-home payment ) an employee gets after all mandatory deductions from the gross salary. Bharat Payroll’s platform displays net salary clearly within employee profiles, enhancing transparency.

Flexible Payroll Policies

Payroll policies outline the rules regarding salary structures, benefits, and payment schedules in an organisation. Bharat Payroll allows custom payroll policies for different employee categories, roles, and locations to meet organisational needs.

Payroll Processing and Cycle Management

Payroll processing involves various steps from calculating and validating to salary disbursement on a fixed schedule. Bharat Payroll automates every step of the payroll cycle incorporating attendance tracking, leave management, and final salary.

Secure Data Management

Secure data management involves protecting sensitive payroll data against unauthorised access. It helps in maintaining confidentiality and compliance. Bharat Payroll uses advanced E2E encryption protocols to safeguard sensitive employee data.

Attendance and Leave Management

Attendance and leave management is based on tracking employee working hours and leave credits for accurate payroll processing. Bharat Payroll integrates attendance with payroll for real-time accuracy in salary calculations and leave deductions.

Digital Payment Options

Digital payment options are electronic methods such as bank transfers for salary disbursement. Bharat Payroll supports multiple digital options for payments which offers flexibility and convenience for both employees and employers.

Reports and Analytics

Ai-driven reporting provides detailed insights and records of payroll data, attendance, and deductions which helps in strategic decision-making. Reporting tools generate detailed HR and finance reports which help managers access relevant data and improve workforce management.

Additional Payment Components

Bonuses and Incentives

Bonuses are additional payments awarded periodically or based on performance to recognize employee contributions. Bharat Payroll supports different bonus types, such as performance incentives and festival bonuses, allowing flexible configuration.

Reimbursements for Business Expenses

Expenses employees pay for work-related activities, like travel or meals are referred to as “Reimbursements”, which the company refunds later. Bharat Payroll provides reimbursement options for work-related expenses on the portal itself while complying with regulatory standards.

Overtime Pay ( OT )

Overtime payment is additional compensation paid to the employees for extra hours worked beyond scheduled working hours. Bharat Payroll calculates OT according to the company’s predefined rules ( mostly on an hourly basis ). This ensures compliance with labour regulations.

Allowances and Benefits

Allowances are additional benefits for employees, including:

House Rent Allowance or HRA: Based on the employee's residence location (metro/non-metro).
Conveyance Allowance: Tax-deductible for work-concerned travel.
Medical Allowance: Exempt up to limits for healthcare expenses.

Elements in Payroll Deductions

Payroll deductions are the required amounts taken from gross salary for taxes and contributions which reduces in take-home pay. Bharat Payroll automates the calculation and compliance for essential deductions

Employee Provident Fund (EPF)

EPF builds a secure financial future for employees after retirement. Under this, both employer and employee pay a fixed percentage ( 12% in India ) of the employee's salary every month on the EPFO portal. This amount can be withdrawn under specific conditions such as retirement, job change, illness, or house purchase.

Income Tax (TDS)

Tax Deducted at Source or simply TDS is the tax amount an employer deducts from the employee’s salary for certain incomes (like salary, interest, rent, etc.) before crediting. This same amount is then paid directly to the government on the employee’s behalf.

Employee State Insurance (ESI)

ESI is a state-oriented health insurance program which provides medical/cash benefits as per the ESI Act of 1948 to employees having an income less than ₹21,000 monthly ( and ₹25,000 for the specially-abled ).

Professional Tax (PT)

A state-level tax levied on salaried employees and professionals, with rates varying by state. Configurable by state, ensuring accurate deductions based on location.

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Additional Competitive Benefits of Bharat Payroll

Early Wage Access (EWA) : Bharat Payroll offers employers an option to provide early access to wages. This adds to employee satisfaction and financial welfare in emergency conditions.

Employee Self-Service Portal ( ESS ) : Our dedicated HRMS portal allows employees to access salary slips, tax forms, manage leaves, and more from a single platform.

Updated compliance : Our software keeps you updated on the latest payroll regulations. This makes sure your business remains compliant always.

Why do Businesses Prefer Bharat Payroll for Payroll Management?

Seamless Compliance with Indian Payroll Regulations

Bharat Payroll ensures effortless compliance with Indian laws like EPF, ESI, PT, and TDS, automating updates to meet regulatory changes.

Automated Payroll Processing & Error-Free Calculations

Bharat Payroll automates the entire payroll processing, reduces manual errors and ensures timely and accurate salary breakdowns and deductions.

Actionable Payroll Insights & Advanced Reporting

Detailed reports provide valuable insights into payroll components, expenses, and workforce data, supporting strategic decisions.

Efficient Attendance & Leave Management Integration

Integrated attendance and leave tracking sync with payroll calculations, ensuring accuracy in employee pay based on real-time data.

Flexible Payment Options to Suit Employee Preferences

Bharat Payroll supports multiple payment methods, from bank transfers to digital wallets, offering flexibility for salary disbursement.

Real-Time Access for Employees and HR

A user-friendly portal offers both employees and HR smooth access to payroll details, deductions, and pay slips. This promotes transparency and trust among employees.

Payroll Policies for Every Business Need

The platform allows the customisation of payroll policies, accommodating unique needs across employee roles, locations, and salary structures.

Data Security & Privacy at Every Step

With advanced encryption, Bharat Payroll protects sensitive payroll data, maintaining confidentiality and security at all stages.

Frequently Asked Questions

What is an Employee Provident Fund ( EPF )?
The Employee Provident Fund is a financial scheme mandated by the Indian government to protect the future of workers. In this, both employees and employers contribute an equal share on the EPFO portal ( approximately 12% in India ) of the employee's salary.
How does Bharat Payroll handle ESI?
Bharat Payroll automatically calculates ESI deductions based on salary and eligibility criteria. We ensure compliance with ESI regulations by providing accurate filings and tax reports.
What is Professional Tax (PT) and how does Bharat Payroll calculate it?
Professional tax is a tax charged by state governments in India on employees. Bharat Payroll provides PT calculations based on the employee's wage and the state-specific rates. It also helps in PT filing and compliance.
Can I configure dynamic salary components in Bharat Payroll?
Bharat Payroll allows the customisation of dynamic salary components like- variable pay, bonuses, allowances, etc. This flexibility helps in managing diverse pay structures across employee categories.
How does Bharat Payroll ensure the security of payroll data?
Bharat Payroll uses advanced industry-standard E2E encryption and security protocols to protect sensitive payroll data. The software gives user access control and role-based permissions which enhances data security.
Does Bharat Payroll provide compliance reports for audits?
Yes, Bharat Payroll generates detailed compliance reports for EPF, ESI, PT, and tax filings. These comprehensive resorts can be used for further audits and regulatory checks.
Can employers customise salary components in Bharat Payroll?
Bharat Payroll allows full customisation of salary components in which employers can add or modify components based on the specific requirements of the organisation.

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