ERPNext Module

ERPNext HR & Payroll
Automate Your People Operations from Hire to Retire

From biometric attendance to automated payroll, PF, ESI, Form 16 and statutory compliance — ERPNext HR gives Indian businesses a complete HRMS with zero manual calculations and zero software licensing cost.

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HAPPY CUSTOMERS
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CUSTOMIZED PRODUCTS
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DEDICATED TEAM
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YEARS OF EXPERIENCE
KEY FEATURES

Complete HR & Payroll Management in One Platform

ERPNext HR covers every aspect of employee management — from recruitment to retirement — with India-specific payroll compliance built in.

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Employee Master & Onboarding

Maintain a comprehensive employee database with all personal, professional, and compensation details in one place.

  • Employee profile with all documents
  • Department, designation, and grade management
  • Onboarding checklist and task assignment
  • Employment history and promotions
  • Document storage (Aadhaar, PAN, offer letter)
⏱️

Attendance & Time Tracking

Track attendance accurately with biometric integration, manual attendance, or shift-wise time tracking.

  • Biometric device integration (ZKTeco, ESSL)
  • Manual and bulk attendance upload
  • Shift management and shift rostering
  • Overtime calculation and tracking
  • Work from home and remote attendance
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Leave Management

Define leave policies, allocate leave balances, and let employees manage their leave through a self-service portal.

  • Leave types: PL, CL, SL, ML, and custom
  • Leave allocation and carry-forward policies
  • Employee self-service leave application
  • Manager approval workflows
  • Leave encashment calculation
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Automated Payroll Processing

Run monthly payroll in minutes. ERPNext auto-calculates salaries, deductions, and taxes based on attendance and salary structures.

  • Flexible salary structure with formula components
  • Attendance-linked payroll calculation
  • Arrear and stop-payment management
  • Salary revision with arrear auto-calculation
  • Bulk payroll processing for all employees
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Statutory Compliance (PF, ESI, PT)

Auto-calculate all Indian statutory deductions. Generate PF/ESI challans and stay compliant with every payroll run.

  • PF (12% employee + 12% employer) auto-deduction
  • ESI calculation (employee 0.75% + employer 3.25%)
  • Professional Tax — all state-wise slabs
  • PF and ESI challan generation
  • ECR file for PF portal upload
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TDS on Salary & Form 16

Auto-calculate income tax deductions on salary throughout the year and generate Form 16 for all employees at year-end.

  • Investment declaration collection from employees
  • Auto TDS calculation — Section 192
  • Monthly TDS adjustment as declarations change
  • Form 16 Part A and Part B generation
  • Form 24Q (quarterly TDS return support)
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Expense Claims & Reimbursements

Let employees submit expense claims online. Managers approve and reimbursements are included in the next payroll cycle.

  • Employee expense submission with receipts
  • Category-wise expense limits
  • Multi-level approval workflows
  • Reimbursement via payroll or direct payment
  • Expense reports by department or employee
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Performance Management & Appraisals

Set goals, conduct appraisals, and link performance ratings to salary revisions — all within ERPNext.

  • Goal setting and KRA tracking
  • 360-degree appraisal support
  • Self-rating and manager rating
  • Performance history by employee
  • Link appraisal outcome to increment
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Employee Self-Service Portal

Empower employees to manage their own HR needs — reducing HR team workload and improving employee satisfaction.

  • View and download payslips
  • Apply for leave and check balance
  • Submit investment declarations
  • Raise expense claims
  • Update personal details and emergency contacts

Built-in India Payroll Compliance
— PF, ESI, TDS, PT & More

Running payroll in India involves a complex web of statutory requirements — PF, ESI, Professional Tax, TDS on salary, Gratuity, Bonus, and more. A single missed calculation can result in penalties and employee dissatisfaction.

ERPNext HR & Payroll handles all of this automatically — configured by GSeven’s payroll experts to match your exact company structure and state-specific requirements.

  • PF: Employee 12% + Employer 12% with EPS split
  • ESI: Employee 0.75% + Employer 3.25%
  • Professional Tax: All states — Kerala, Karnataka, West Bengal, Maharashtra, etc.
  • TDS on salary (Section 192) with investment proofs
  • Labour Welfare Fund (state-specific)
  • Gratuity and bonus calculation
  • Full and final settlement processing
  • ECR file for PF portal, ESI challan

IN Payroll Compliance Checklist

PF

Employee 12% + Employer 12% auto-calculated. ECR file for EPFO portal. Pension contribution (EPS) split handled.

ESI

Threshold-based applicability. Employee and employer contributions auto-calculated. ESI challan generated.

TDS

Monthly TDS calculation on estimated annual income. Old and new tax regime support. Form 16 and Form 24Q.

Prof. Tax

All state-wise slabs covered. Auto-applied based on employee state. Monthly and annual PT challan support.

Gratuity

Auto-calculated at time of full & final settlement. Gratuity Act formula with years-of-service check.

SEAMLESS INTEGRATION

HR & Payroll Connected Across the Business

When payroll is processed in ERPNext, the accounting entries are created automatically. No more duplicate data entry between your HR software and accounting system.

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Accounting & Finance

Payroll journal entries auto-posted to GL — salary expense, PF payable, ESI payable, and TDS payable accounts.

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Manufacturing

Labour costs from shop floor job cards flow directly into production cost analysis.

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Projects

Timesheet-based payroll — employee time logged to projects flows into project cost and payroll calculation.

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CRM & Sales

Sales team attendance and performance data linked to incentive and commission calculation in payroll.

FAQS

Frequently Asked Questions — ERPNext HR & Payroll

Does ERPNext Payroll handle PF, ESI, and Professional Tax? +
Yes. ERPNext Payroll has built-in support for PF (Employee 12% + Employer 12% with EPS split), ESI (Employee 0.75% + Employer 3.25%), and Professional Tax with state-wise slabs for all Indian states. These deductions are auto-calculated every payroll cycle based on each employee's salary structure and applicable thresholds.
Can ERPNext integrate with biometric attendance systems? +
Yes. ERPNext supports biometric attendance integration with popular devices including ZKTeco, ESSL, and others. Attendance data can be imported or synced via API, and used to auto-calculate payroll based on actual days worked, late arrivals, and overtime hours.
Does ERPNext generate Form 16 and payslips? +
Yes. ERPNext auto-generates professional payslips for every employee every month, which employees can download from their self-service portal. At year-end, ERPNext calculates annual tax liability, generates Form 16 (Part A and Part B), and supports quarterly Form 24Q for TDS return filing.
How does ERPNext manage employee leave? +
ERPNext has a complete leave management system. You define leave types (PL, CL, SL, ML, etc.), allocate leave balances per employee based on your policy, and employees apply for leave through the self-service portal. Managers approve or reject through the system. Leave balances auto-update and feed into payroll calculations for loss of pay.
Can employees access their payslips and apply for leave online? +
Yes. ERPNext has an Employee Self-Service portal where employees can view and download their monthly payslips, check their leave balance, apply for leave, submit expense claims, declare their tax-saving investments, and update personal details — all without involving the HR team for routine queries.
Does ERPNext support different salary structures for different employee categories? +
Yes. ERPNext allows you to create unlimited salary structures with different earnings and deduction components. Components can be formula-based (e.g., HRA = 40% of Basic) or fixed amounts. Different structures can be assigned to different employee grades, departments, or locations — making it flexible for businesses with complex compensation models.
EXPLORE MORE

Other ERPNext Modules by GSeven

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Accounting & Finance

GST, e-Invoicing, TDS, multi-currency, and full financial reporting.

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Inventory & Warehouse

Real-time stock tracking, barcode scanning, and automated reorder.

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Manufacturing

Production planning, BOM, work orders, and shop floor control.

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CRM & Sales

Lead management, sales pipeline, and customer lifecycle tracking.