Payroll - Xls Download - Payroll Software

Can I get help on "How to prepare payroll"? Is any software mandatory for that, or can it be done manually? If an example is provided, it will be helpful.

Thank you in advance.

Hi friends, it's me Sivasakthere. I want to give more importance in HR. I have completed my MBA in HR. During my college life, they didn't teach us how to calculate payroll, PF, ESI, etc.

Can anyone help me regarding the same topic and area where I want to be alert and learn in the non-IT field? I am fully lacking behind in this part.

ESI is calculated as 1.75% of the basic salary. PF is calculated as 12% of the basic salary.

Ensure there is a single line break between paragraphs.

Hi Rakesh, you are absolutely right. PF is contributed with 12% from the employee side on the basic salary, and 12% from the employer side. ESI is 1.75% from the employee side and 4.75% from the employer side on the basic salary.

Neesu

Hi all,

Employee ESI contribution = 1.75% on gross.
Employer ESI contribution = 4.75% on gross.
The slab for ESI is Rs. 10,000/- gross. If an employee's gross is above the mentioned slab, he will not be covered under ESI.

Employee PF contribution = 12% on BASIC.
Employer PF contribution = 12% on BASIC.
The PF slab is Rs. 6,500/- basic, over and above which no need to pay PF, i.e. the maximum contribution is Rs. 780/- (12% of 6,500).

Actually, all the employees must be covered under PF even though their basic is above 6,500. However, there is an exception for this: an employee with the prior consent of the employer can exempt himself from PF contribution.

Please let me know if you have any more doubts or if you don't understand something.

Warm regards,
Sirisha.k

Hello everybody,

Here's a format where you can find the full calculation of salary along with the percentage of deduction. Hope this will solve your purpose.

Hi PF Employee Contribution Calculation - 12% on Basic + DA. ESI Employee Contribution Calculation - 1.75% on Gross Salary.

PF Employer Contribution Calculation - 13.61% on Basic + DA. ESI Employer Contribution Calculation - 4.75% on Gross Salary.

Hi,

Payroll is the salary processing system. Payroll can be seen from two aspects: one from the HR side and the other from the commercial people side. The HR personnel process the payroll by sending attendance details or, more precisely, Leave Without Pay (LWP) details and other complete information that an employee is entitled to receive in a particular month. Upon receiving these details, the commercial team begins entering the data into the payroll software and starts processing the salaries.

During the salary processing for a specific month, we, the HR staff, provide comprehensive LWP details to the commercial department. When calculating LWP, we create an attendance sheet which includes weekly offs. In addition to weekly offs, we check the number of days an employee is absent, and out of those days, how many were taken as leave, which we cross-reference with the leave applications. If an employee has submitted an approved leave application and has sufficient leave balance, we mark them as on leave. However, if an employee has not submitted the leave application or lacks sufficient leave balance, they will be considered absent for that day, and their salary will be deducted accordingly.

Similarly, if there is a provision to grant one day's extra salary for a specific day if the employee attends work, we calculate the additional salary for those employees present on that day.

I hope this explanation clarifies the process. If not, please let me know.

Regards,

Amit Seth

Hi Rakesh,

A little correction I would like to make:

ESI employee share = 1.75% of Gross salary
ESI Employer share = 4.75% of Gross Salary
Total Contribution is 6.5% of gross salary.

Raj

Hello all,

I am attaching the salary breakdown that we are currently using.

Newage

Hi Shiva,

Herewith, I am attaching compensation & benefits information. This information was obtained from a senior member of citehr. I hope this will be helpful to you.

Prakash

Hello,

PF Employee Contribution Calculation: 12% on Basic + DA + Food Allowance.
ESI Employee Contribution Calculation: 1.75% on Gross Salary.
PF Employer Contribution Calculation: 13.61% on Basic + DA + Food Allowance.
ESI Employer Contribution Calculation: 4.75% on Gross Salary.

Akanksha Kukhraniya

Dear friends,

I just want to know how the salary is calculated, how much percentage is to be divided for BASIC, HRA, DA, and other allowances. Payroll processing differs from one company to another. Please give me a brief discussion.

Thanks & Regards,
Paramagurunaath.SPS

Hi Ramesh,

Could you please tell me how to prepare payroll? Please let me know what general benefits will be included in the payroll.

Regards,
Ramesh

Hi,

What Sirisha K. says is correct. Regarding payroll, it depends on the company as they will categorize components such as Basic, HRA, TA, FBP, Allowance, Bonus, etc. The percentages vary, with some companies allocating 35%, 40%, or 45% of the Gross to Basic pay. Therefore, we cannot specify exactly.

Bye

Hi,

The percentage that is divided for the various components varies from one company to another. In my company, we have the following components: Basic, HRA, CA, and CCA.

Where basic is 55%, HRA (house rent allowance) is 20%, CCA (City compensatory allowance) is 15%, and CA (Conveyance allowance) is 10%. All the above components are calculated on gross, where Gross is CTC minus employer contribution of PF and ESI (if applicable).

Calculations for PF and ESI:
- PF to be calculated on Basic. Employer and employee both contribute 12%. For basic above 6.5k, PF is a constant 780.
- ESI to be calculated on Gross. Employer 1.75%, Employee 4.75%. ESI is applicable only up to the net 10k.
- Net pay is gross minus PF minus ESI minus PT (Professional tax).

The Professional tax (PT) has the following slab:
- Rs.3000/- to 4999/- - Rs.30/-
- 5000/- to 7999/- - Rs.60/-
- 8000/- to 9999/- - Rs.100/-
- 10000/- to 14999/- - Rs.150/-
- Above Rs.15000/-, it is Rs.200/-

Hope this clarifies.

Regards,
Jayashri

ESI Employee Contribution Calculation - 1.75% on Gross Salary (always round up). For example, if the contribution amount is Rs. 50.20, then you have to take it as Rs. 51.00.

ESI Employer Contribution Calculation - 4.75% on Gross Salary (even the employer contribution is also rounded up).

PF employee - 12% of Basic + DA.

PF employer - 12% of Basic + DA (out of which 8.33% is towards Pension and 3.67% to PF).

[QUOTE=sharmaneesu;378907]
Hi Rakesh, you are absolutely right. PF is contributed at 12% from the employee's side based on the basic salary and 12% from the employer's side. ESI is calculated at 1.75% from the employee's side and 4.75% from the employer's side, both based on the gross salary.

Ashok

Hi,

You mentioned that ESI is contributed on gross, so can you please specify if gross includes the basic salary + incentives or what it includes? I am a little bit confused! Please do let me know more about ESI.

Regarding competency mapping, how does it measure, as it is my project topic? Please guide me on this.

Thank you.

Dear all,

I am attaching the simple salary process in Excel. Please take the time to learn it as it will be very useful. Everyone should know how to work in Excel and understand the salary processing procedures. The document includes all the necessary details such as PF, ESI, etc. I believe that I have provided a valuable resource to all of you. Kindly view the attachment.

Warm Regards,
Vinoth.R

Hi Jayshri,

As far as I know, the ESIC contribution of the employee is 1.75%, and the employer's contribution is 4.75%.

Regards,

Hi All,

This is Devendra.

I want to know, for the calculation of salary, how many days shall be counted per month, i.e., 26, 27, 30, or 31.

Dev

Hi everybody,

I am an HR Executive in a private company. I would like to learn about the entire payroll process as handled in a corporate setting, including information on PF, ESI. Kindly send me the relevant details to clear all my queries.

Thanks & Regards,
Deepa.K

Hi Jeyell,

If I am right, PF Employee Contribution Calculation is 12% on Basic + DA. PF Employer contribution is also 12% on Basic + DA. Within that 12% (Employer Contribution), 8.33% goes to the PF Scheme and the remaining 3.67% goes to the Pension Scheme.

Thanks and Regards, Jai

Hi Friends,

If I am right, PF: Employee Contribution 12% on Basic + DA. Employer Contribution 12% on Basic + DA (Among this 12%, 8.33% will go to PF Scheme, and the remaining 3.67% will go to the Pension Scheme).

ESI: Employee Contribution 1.75% on Gross Salary. Employer Contribution 4.25% on Gross Salary.

If I committed a mistake anywhere, just let me know.

Thanks and Regards, Jai

Hi,

Please find the breakup of PF for the employee and employer sides. The employer's amount goes into five accounts - account No. 1, 2, 10, 21, and 22.

PF Challan
Following challans duly filled in should be submitted:
- P.F. Cont. (Employee's + Employer's Share) A/c No. - 01 - 12% + 3.67%
- Pension Fund Contribution A/c No. - 10 - 8.33%
- Administrative Charges A/c No. - 02 - 1.10%
- E.D.L.I.F. A/c No. - 21 - 0.50%
- Administrative Charges A/c No. - 22 - 0.01%

I believe it will be useful for you. :)
Thanks,
Shuchi

Hello sir, I am searching for a job in HR. I have completed M.P.M in '07 and have 1 year of experience in Consultancy. Please guide me.

Nidhi Saxena

Hi, Payroll is the salary processing system. Payroll can be seen from two aspects. One is from the HR side and the other from commercial people's side. The HR personnel process the payroll by sending attendance details or, better to say, LWP details and other complete details that an employee is going to receive in a particular month. After receiving those details, the commercial people start making entries into the payroll software and begin the salary processing.

While processing the salary for a particular month, we, the HR personnel, provide complete LWP (Leave without Pay) details to the commercial department. When calculating LWP, we prepare the attendance sheet with the weekly offs. Besides the weekly offs, we check how many days an employee is absent, out of which how many days he was on leave. We crosscheck this with leave applications. If the employee has submitted the approved leave application form and the leave is in his account, then we mark him on leave. However, if the person has not submitted the leave application form or does not have any leave balance, then for that day, the employee will be considered absent, and we will deduct his salary for that day.

Similarly, if there is any provision to provide one day's extra salary for a specific day if the employee does come, then we calculate one day's extra salary for those employees who were present on that day. I hope this explanation clarifies things for you. If not, please revert.

Regards, Amit Seth

Hi all,

Employee ESI contribution = 1.75% on ESI earning gross Employer ESI contribution = 4.75% on ESI earning gross Note: Washing allowance is exempted from ESI earning. And the cutoff limit for ESI is Rs. 10,000/- PM, if an employee's gross is above the mentioned cutoff after the first half or before, then he will not be covered under ESI act. But in between the 1st and 2nd half ESI gross will cross the cutoff limit then he has to contribute till the 1st or 2nd half will not over. 1st half: Apr to Sep and 2nd half means: Oct to Mar

Also, if an employee is drawing average daily wages less than 70 Rs. per day, then the employee need not pay ESI; only the employer will pay 4.75% on ESI earned gross.

Employee PF contribution = 12% on BASIC+DA Employer PF contribution = 12% on BASIC+DA PF Cutoff limit is Rs. 6500/-, over and above which no need to pay PF, i.e., the maximum contribution is Rs. 780/- (12% of 6500). Actually, all the employees must be covered under PF even though their Basic+DA is above 6500. However, there is an exception for this, an employee with the prior consent of the employer can exempt himself from PF contribution.

Please do let me know if you have any more doubts or if you don't understand something.

Warm regards, Hansraj Pawar

Hi all,

There are many payroll vendors who provide the software/solution to process our payroll - why worry? They will provide the solution. We can make use of them.

Dear Jayshri,

A little correction in your post: the employer's contribution towards ESIC is 4.75%, and the employee contribution is 1.75%.

Regards,
Jai

Employee ESI contribution is 1.75% of the gross salary.

Employer ESI contribution is 4.75%, and the total is 6.50%.

Employee PF contribution is 12% of the basic salary (maximum basic is Rs. 6,500) on the earned monthly salary.

Employer PF contribution is 12%.