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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
Attendance becomes loss of pay, loss of pay becomes gross, gross becomes statutory deductions, and deductions become filings. HRMagix runs the whole chain in one pass and leaves the working visible at every step.
Payroll at a glance
The reason payroll takes days in most Indian companies has almost nothing to do with arithmetic. Multiplying a per-day rate by a number of days is trivial. Establishing the number of days is not.
That number is the sum of a biometric log, a set of leave applications in various states of approval, a comp-off credited for a Sunday worked in a previous month, a late-mark policy with a grace period, and a manager who confirmed a work-from-home day over WhatsApp. Payroll teams do not spend four days calculating. They spend four days establishing what happened, and then a few minutes calculating.
HRMagix removes the establishing. Because attendance, leave and payroll read one ledger, the number of payable days for every employee is already settled when the cutoff arrives, and every statutory deduction that follows from it is derived rather than typed.
They own the number but not the people. Payroll errors land on their desk, and statutory filings carry personal risk.
The moments that usually start the search
A payroll error reaches employees before anyone catches it.
Audit season arrives and the evidence is spread across files and inboxes.
A statutory rate or threshold changes mid-year.
The month-end close keeps slipping because payroll is late.
The whole run, from the inputs it reads to the files it produces. Statutory items are named as the statute names them, so you can check each against your own obligations.
“Payroll teams do not spend four days calculating. They spend four days establishing what happened.”
Attendance becomes loss of pay, loss of pay becomes gross, gross becomes statutory deductions, and deductions become filings. HRMagix runs the whole chain in one pass and leaves the working visible at every step.
Every statutory head in an Indian payslip has an eligibility test, a base, a rate and a ceiling, and each of them can move independently. An employee crossing the ESI gross threshold mid-contribution-period does not simply drop out. A Professional Tax slab in Maharashtra behaves differently in February. Gratuity provisioning begins mattering long before anyone becomes eligible to be paid it.
HRMagix holds each of these as a rule against the employee record rather than as a column in a sheet. The consequence is that applicability is re-evaluated every month from the structure in force that month, not carried forward from the last one because nobody remembered to check.
Since employees may elect between the old and new regimes, the monthly TDS schedule under Section 192 depends on a declaration that many employees make late and some change. Getting it wrong in April produces a painful correction in February.
Employees compare their liability under both regimes inside their own self-service portal before declaring, then upload proof, Section 80C and 80D investments, HRA rent receipts, home loan interest, for HR to verify. The monthly deduction schedule follows the verified declaration, quarterly Form 24Q is generated from the same data, and Part B of Form 16 at year end is a report rather than a project.
A payroll run is only finished when money and paperwork have both moved. HRMagix closes both ends: a bank payment batch file formatted for NEFT, RTGS or IMPS on one side, and on the other the electronic challan receipt file for the EPFO unified member portal, the monthly ESIC contribution return, the state Professional Tax working and the payslips themselves.
Payslips are issued to employees through their own login rather than emailed as attachments, which means an employee looking for March 2024 in November finds it without asking anybody.
A payroll management system cannot calculate anything until the salary structure exists, and the structure is where most of the consequential decisions are made. Basic pay determines the PF wage. The split between basic, house rent allowance and special allowance determines how much of the package is exemptible. Whether a component is treated as part of the gross determines ESI eligibility near the threshold.
Those are policy decisions with statutory consequences, not formatting choices, and they are made once per grade rather than once per employee. Holding the structure as a template on the grade, and the individual's figures as an instance of it, is what stops two people on the same band being paid under different arithmetic because their offer letters were drafted by different people in different years.
It is also what makes an increment a change to one field rather than a re-derivation of everything downstream of it.
An increment agreed in July and effective from April is the ordinary case, not the exception, and it is where payroll processing systems are most often found wanting. The revision changes four months that have already been paid, filed and reported.
The correct treatment in any salary management system is to recompute those months under the new figures, pay the difference as an identified arrear in the current month, and leave the original payslips as they were issued. What must not happen is a silent restatement of history: the earlier payslips were correct under the salary in force at the time, and the statutory returns filed against them were correct too.
The arrear then carries its own consequences. It is part of the PF wage for the month it is paid, it moves the year-to-date figure the TDS projection is built on, and it appears on the payslip as a separate line so the employee can see what the difference was for.
A final settlement is the only payroll event that reads from every other module simultaneously. Salary to the last working day comes from attendance. Leave encashment comes from the leave ledger. Notice pay or recovery comes from the resignation record. Gratuity, where five years of continuous service have been completed, comes from the date of joining and the last drawn basic.
Against those sit the deductions: outstanding advances, unrecovered assets, the notice shortfall if any. The reason settlements are slow in most companies is not the arithmetic but the collection, four people confirming four figures by email, in a week when the employee has already left.
When each of those figures is already a record rather than an opinion, the settlement is assembled rather than negotiated, and the employee gets a statement showing every component and where it came from.
The same eight steps run every month. Steps one to four require nothing from the payroll team at all.
Biometric punches, mobile check-ins and approved regularisations settle into the attendance ledger as they happen, not at month end.
Approved leave, sandwich-rule outcomes, comp-off credits and unpaid days are applied against each employee's scheme.
Payable days fall out of the ledger automatically. A backdated approval on the 28th changes the figure before the cutoff.
Effective-dated salary structures, overtime, night-shift differentials and any one-off components build the month's gross.
EPF, ESI, Professional Tax by state, Labour Welfare Fund and TDS under the employee's declared regime are each evaluated against this month's structure.
A variance view shows what changed against last month and why, so the check is on exceptions rather than on all nine hundred rows.
A bank payment batch file is generated in NEFT, RTGS or IMPS format for upload to your corporate banking portal.
EPFO ECR text file, ESIC contribution return, PT working and payslips to every employee's self-service login.
These are provisions of Indian law, not HRMagix settings. What HRMagix does is evaluate them monthly against the structure in force, so applicability is never assumed.
12% employee and 12% employer contribution, with the statutory wage ceiling of ₹15,000 available as a configurable cap, plus voluntary PF where an employee elects it.
Output: ECR file for the EPFO unified member portal
0.75% employee and 3.25% employer contribution, applicable against the ₹21,000 gross wage threshold, with contribution-period rules respected rather than a simple monthly test.
Output: monthly contribution return and challan report
State-specific slabs configured for Maharashtra, Karnataka, Telangana, Tamil Nadu, Andhra Pradesh, Gujarat and West Bengal, including the February slab change and gender-specific exemptions where a state provides them.
Output: state-wise PT working
Old and new regime comparison in the employee portal, declarations under 80C, 80D, HRA and home loan interest, HR verification, and a monthly deduction schedule that follows the verified position.
Output: quarterly Form 24Q, annual Form 16 Part B
Provisioning and settlement on the fifteen days of last drawn basic salary formula, for employees completing five years of continuous service.
Output: provision schedule and settlement working
Half-yearly and annual deductions matched to state deadlines, Maharashtra's June and December cycles among them, applied inside the payroll run rather than remembered separately.
Output: state LWF statement
Attendance, leave and the rules that govern them.
The monthly run, from salary structure to payslip.
Asked most often by finance leads and payroll managers part-way through an evaluation.
EPF is calculated at 12% employee and 12% employer contribution, with the ₹15,000 statutory wage ceiling available as a configurable cap and voluntary PF supported where an employee elects it. ESI applies at 0.75% employee and 3.25% employer against the ₹21,000 gross wage threshold, with contribution-period rules respected rather than a naive month-by-month test. Both produce filing-ready output: an ECR file for the EPFO portal and a monthly contribution return for ESIC.
Yes. The employee self-service portal includes a tax simulation that shows liability under both regimes before an annual declaration is made. Employees upload proof for Section 80C, 80D, HRA and home loan interest, HR verifies it, and the monthly TDS schedule follows the verified position.
HRMagix generates Part B of Form 16 annually from the same payroll data used for the monthly TDS schedule and quarterly Form 24Q. Part A is issued by TRACES against the employer's TAN.
The run produces a bank payment batch file formatted for NEFT, RTGS or IMPS, which is uploaded to your corporate banking portal. HRMagix does not hold or move funds itself.
The affected months are recomputed under the revised salary, the difference is paid as an identified arrear line in the current month, and the original payslips stay as issued. The arrear counts toward the PF wage of the month it is paid and moves the year-to-date figure the TDS projection uses.
Salary to the last working day, leave encashment from the leave ledger, notice pay or recovery from the resignation record, and gratuity where five years of continuous service are complete, less advances, unrecovered assets and any notice shortfall. Each component is drawn from the module that owns it rather than confirmed by email.
Substantially. Basic pay drives the PF wage; the split between basic, HRA and special allowance drives what is exemptible; and whether a component sits inside the gross drives ESI eligibility near the threshold. These are decisions made once per grade, and they are the reason two packages of the same total can cost the employer different amounts.
It is locked. Corrections are made as identified adjustments in a later run rather than by editing a closed period, because the closed period has already been filed against. That is also what allows a payslip reprint to be the original document rather than a regenerated approximation.
Looking for a custom walkthrough or have specific statutory policy requirements? Connect with our product specialists in Pune for a 1-on-1 consultation.
A walkthrough against your own policies, with a dry-run before the first live cutoff.
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