Payroll &
Compensation
The Payroll module calculates and processes employee salaries. It integrates with Attendance (hours worked) and HR (salary structures, deductions) to generate accurate payslips every pay period.
What is Payroll Management?
Payroll Management handles the entire salary cycle: salary structure setup (basic pay, allowances, deductions), attendance integration (overtime, late deductions), payroll generation (calculating net pay for all employees), deductions (tax, insurance, loan repayments, security deposit, canteen credit), approval workflow, and payslip generation (printable PDFs).
Hub tabs: Payslips, Salary structures, Statutory policies, Employee loans, Carry-forwards. Lists stamp/filter clinical Payslip.branchId / employee work campus (Working-in), with optional HR OrgUnit AND — never OrgUnit alone for campus geography. It also manages employee loans with installment deduction tracking, and increments.
Why Does It Exist?
- → Calculation errors — Manual payroll calculation is error-prone and time-consuming
- → Tax compliance — Payroll must comply with tax laws; manual tracking risks penalties
- → Delayed payments — Without a system, payroll processing takes days instead of hours
- → Audit trail — Salary is sensitive; every change must be tracked and approved
How Payroll Works
Attendance Freeze
At the end of the pay period, attendance is finalized. HR reviews exceptions (missing check-ins, late marks) and approves corrections. Once frozen, attendance cannot be changed without special authorization.
Salary Calculation
The system calculates each employee's gross pay: base salary + allowances (HRA, travel, medical) + overtime + bonuses. Then deductions are applied: taxes, insurance premiums, loan installments, and unpaid leave deductions.
Approval Workflow
The calculated payroll is sent for review. Department heads review their team's pay. HR reviews the overall payroll. Finance reviews totals and cash requirements. After all approvals, the payroll is locked.
Disbursement & Payslips
After final approval, the payroll is ready for payment. Bank transfer files can be generated. Each employee receives a digital payslip (PDF) showing earnings, deductions, and net pay. Payslips are archived for future reference.
Every Feature Explained
Salary Structure
Define each employee's pay components (basic, allowances, deductions).
Standardizes compensation and ensures consistent calculations.
Structures are configured with earning heads (Basic, HRA, Travel, Medical) and deduction heads (Tax, Insurance, Loan). Values can be fixed amounts or percentages of basic.
Attendance Integration
Auto-calculate overtime and unpaid leave deductions from attendance data.
Ensures pay accurately reflects actual work done.
Regular hours are paid at standard rate. Overtime hours are paid at premium rate (1.5x, 2x). Unpaid leave days are deducted from gross pay.
Tax & Deduction Management
Calculate and deduct taxes and other contributions.
Ensures legal compliance and correct net pay.
Tax brackets are configured. System calculates tax based on taxable income. Insurance premiums, loan installments, and other deductions are applied automatically.
Loan Management
Manage employee loans with installment deduction.
Allows employees to get advances while ensuring repayment.
Loan amount, repayment period, and monthly installment are configured. Each month, the installment is auto-deducted from the employee's salary until the loan is repaid.
Payslip Generation
Generate detailed payslips for every employee.
Employees need documentation of their earnings and deductions.
Payslips show all earning heads, deduction heads, gross pay, total deductions, and net pay. Generated as PDF with institution branding. Enhanced payslips now include approved OT hours, security deposit deductions, late-coming day deductions, other allowances and deductions totals, and late days count.
Other Allowances & Deductions
Configure custom recurring allowances and deductions per employee.
Some staff have unique compensation elements not covered by standard salary structures.
Create entries with type (allowance or deduction), name, amount, effective date, optional expiry date, and reason. Recurring entries are auto-applied each pay period. Active entries can be managed per employee.
Security Deposit Deduction
Auto-deduct security deposit installments from payroll.
Recovers employee security deposits systematically through payroll without manual tracking.
Configured in HR profile with deposit amount and installment count. Each month, the installment is auto-deducted from salary. Ledger tracks every installment by month/year with remaining balance visible.
Late Coming Deduction
Apply salary deductions for excessive late arrivals.
Enforces attendance discipline by linking late arrivals to salary impact.
Based on the active Late Coming Policy. When an employee exceeds the lates-per-deduction threshold (e.g., 3 lates = 1 day deduction), one day's salary is deducted. Late days count is shown on the payslip.
Approved Overtime in Payroll
Include approved overtime hours in payroll calculations.
Ensures staff are compensated for pre-approved extra work.
Overtime requests that complete the full approval chain (HOD + HR) flow into payroll. Approved OT hours are shown on the payslip. OT can be marked as processed to prevent double-counting.
Technical Architecture
| Field | Type | Institutional Role |
|---|---|---|
| payroll_id | UUID | Unique payslip session identifier. |
| net_amount | Decimal(16,2) | Final payable amount post-deductions. |
| tax_bracket | Enum | Institutional tax mapping identifier. |
| payment_status | Enum | Draft, Verified, Published, Paid. |
Note: Sensitive fields use AES-256 field-level encryption where applicable.
Governance & Power
payroll:managepayroll:generatepayroll:viewBiometric Bridge
Salary calculation is 1:1 linked with biometric attendance. Unauthorized late-marks or early-exits trigger automated deduction workflows.
Tax Compliance
Local fiscal policies and tax brackets are hard-coded at the enclave level, ensuring all disbursements meet national governance standards.
Bonus Trigger
Night-shift attendance stamps and approved overtime requests feed payroll. Doctor on-call (OnCallRoster) is a separate clinical coverage product and does not sync employee night bonuses.