Frappe HR payroll for India
Payroll with PF, ESI, professional tax and income tax set up so it stands up to an audit. Mistakes in statutory deductions are easy to miss, so we work the numbers out by hand first and check the payroll against them before you run a real month.
Systems
What you get.
- State-specific statutory setup, including states that levy no professional tax
- Salary structures worked out from base pay, so loss of pay is deducted correctly
- Income tax spread over a declared payroll period
- A test pack with expected values that you run and sign off before going live
Proof
Who it's for
Companies whose finance team re-checks the HRMS's deductions by hand every month, or who still run payroll in spreadsheets.
More on who this suits
Companies paying per seat for an HRMS that won't show how it works out deductions, so finance ends up re-checking payroll by hand every month. It also suits companies running payroll in spreadsheets who want salary slips, statutory deductions and accounting entries to come from one place.
What's included
Statutory deductions, state by statePF, ESI, professional tax and income tax for each state you employ in.
We set up provident fund, ESI, professional tax and income tax for each state you employ people in. Frappe HR's India setup comes with Basic, HRA, Provident Fund and Professional Tax components, and we configure and test the rules behind them. Some states, including Delhi, don't levy professional tax at all.
Salary structures that prorateLoss of pay reduces the whole gross salary.
Earnings are worked out from base pay, so loss of pay reduces the whole gross salary and not just one component.
Income tax over the payroll periodSlabs, declarations and proofs, with mid-year joiners taxed correctly.
Income tax slabs, a declared payroll period, tax exemption declarations and proof submission, with HRA exemption calculated. Because tax is spread over the payroll period, someone who joins mid-year has the right amount deducted.
Accounting and acceptancePayroll posts to ERPNext, and you sign off a test pack first.
Payroll posts to the ERPNext ledger. Before you go live, you get a test pack with expected values, which you run and sign off.
Common mistakes we help you avoid
Professional tax where there isn't any
Professional tax set up for states that don't levy it.
PF on the wrong base
PF calculated on gross pay when it should be capped on basic, or the other way round.
Tax as if everyone joined in April
Tax withheld as if every employee joined in April.
Loss of pay that skips allowances
Loss of pay that cuts basic but leaves allowances untouched.
No hand-checked month before go-live
Going live without first checking a full month against numbers worked out by hand.
How we work
Every build runs through the same six steps, from a free call to go-live.
01
A call
30 minutes, no charge
02
Discovery
1 to 2 weeks, paid
03
Blueprint
Included in discovery
04
Build
3 to 8 weeks
05
Acceptance
1 to 2 weeks
06
Go-live and run
Ongoing
How it's priced and run
Every build follows our process. We start with a free call, then paid discovery and blueprint, then the build. Your team tests it on a separate site that gets wiped afterwards, and we go live with a runbook.
We run it as an Implementation. The scope is fixed against a signed blueprint and we bill across four milestones instead of by the hour, so you'll know the price before work starts.
After go-live, a Managed run covers support, small changes, framework upgrades (tested on a UAT site first) and regular checks that your backups actually restore.
Questions buyers actually ask.
It comes with the building blocks, such as salary components, income tax slabs, payroll periods, tax exemption declarations, HRA exemption and gratuity rules. The state-specific rules still need setting up and testing, and that's the work we do.
We work out the expected values by hand first, then run the month and compare. In one run, all 30 salary slips matched to the rupee and every UAT case passed.
A focused HR and payroll build takes four to eight weeks. How fast it goes usually depends on how quickly we can get clean employee data and the last few payslips from your old system.
Yes. With ERPNext on the same site, payroll entries post to the general ledger, so salary cost sits beside every other expense.
It means we already know how the product is meant to work and where its limits are, so we spend less of the build finding them out. Our founder also built Frappe HR UI, a simpler front end for Frappe HR and Indian payroll.
Let's start with a call.
Thirty minutes, free of charge, and you won't sit through a sales deck.