Payroll you can explain line by line.
Salary comes straight from the attendance register and your pay settings. StaffPrime applies statutory deductions, recovers advances and loans, and gives every person a payslip that shows how it got there.
From paid days to net pay.
The payslip above, worked through. Nothing is estimated: every figure comes from the register, the pay structure and the month’s payments.
Earned = ₹30,000 ÷ 31 days × 29 paid days = ₹28,064.52
Split = Basic 50% (₹14,032.26) · HRA 40% of basic (₹5,612.90) · Special allowance, the rest (₹8,419.36)
Gross = ₹28,064.52 + ₹1,500 incentive = ₹29,564.52
Deductions = PF 12% of basic ₹1,684 + Professional Tax ₹200 + advance instalment ₹2,000 = ₹3,884
Net pay = ₹29,564.52 − ₹3,884 = ₹25,680.52 ESI does not apply because the monthly rate is above ₹21,000. Monthly pay can also be divided by a fixed number of days instead of the days in the month, and net pay can be rounded.
PF, ESI, Professional Tax and TDS.
Turn on the deductions that apply to your business and choose who each one covers. Your PF and ESI codes and TAN are printed on payslips.
Provident Fund
Employee and employer shares on basic pay, with the pension part split out.
- Contribution
- 12% + 12%
- Wage ceiling
- ₹15,000, optional
- Pension (EPS)
- 8.33%
Employees’ State Insurance
Applied to staff at or under the wage limit, and left off above it.
- Employee
- 0.75%
- Employer
- 3.25%
- Wage limit
- ₹21,000 a month
Professional Tax
Your state’s slabs, including February adjustments and separate slabs for women where a state has them.
- Example
- Maharashtra
- Above ₹10,000
- ₹200 a month
- February
- ₹300
Income tax
Monthly TDS from projected yearly salary, under the regime each person chooses.
- Regimes
- New and old
- Standard deduction
- ₹75,000 / ₹50,000
- Section 87A rebate
- Included
Rates as in force for FY 2025-26. They change with budgets and state notifications, so confirm them with your accountant. The yearly salary statement is not a filed Form 16.
Set up the way your business pays.
Monthly, daily or hourly
Monthly pay by paid days, daily pay per day worked, or hourly pay for the hours on the register.
Pay period and cycle
Divide by the days in each month or a fixed number of days, and start the attendance cycle on any day from the 1st to the 28th.
CTC templates
Ready-made splits of a CTC into basic, HRA and allowances, with a preview of take-home for any amount.
Incentives and bonuses
Incentive kinds such as sales incentive or commission, each shown as its own payslip line.
Reimbursements
Expense kinds staff can claim back with salary, each with an optional monthly limit.
Deductions and round-off
Fines, damage and uniform deductions with notes, and net pay rounded the way you choose.
Money lent to staff, recovered without reminders.
Record an advance and how many months to recover it over, up to 24. For larger amounts, create a loan with EMIs and an interest template. Each month’s share comes off salary automatically.
- Interest templates, simple or compounding, such as “Staff loan 12%”.
- Pause a loan when needed, or close or write it off.
- Always know what is outstanding for each person.
Keep exploring
Run this month’s payroll on StaffPrime.
Add your business and your first staff member in about five minutes.