Salary is the fixed compensation paid by an employer to an employee in exchange for their work.
Payroll refers to the management of employee salary records, including wages, bonuses, deductions, and net pay.

Define Payroll Period
Set the salary cycle for your company (monthly, semi-monthly, etc.).

Set Income Tax Slabs
Configure government tax rules and deductions based on employee income.

Create Salary Structure
Build salary templates with earning components (basic pay, allowances) and deduction components (tax, loans, contributions).

Assign Salary Structure to Employees
Link each employee to their applicable salary structure.

Generate Salary Slips
Automatically calculate employee salaries and generate payslips through Payroll Entry.

With the Payroll Module, your business can manage employee salaries accurately, ensure on-time payments, and stay compliant with tax and labor regulations.

Payroll Made Easy

Streamline your payroll with Frappe HR’s powerful tools and clear guidance.

Book Salaries in Accounts
Post salary expenses to your accounting system for accurate financial records.

Salary Component

This document allows you to create and manage earning and deduction components for Salary Structures, Salary Slips, and Additional Salary entries. You can customize formulas, conditions, and settings based on your company’s payroll policies.

EARNING

DEDUCTION

Depends on LWP: Automatically reduces pay based on Leave Without Pay days.
Do Not Include in Total: Excludes the component from the total earnings or deductions on the Salary Slip.

Salary Structure

Defines how employee pay is calculated using earnings and deductions. It ensures fair pay, rewards performance, and helps control payroll costs.

Salary Structure Assignment

let you assign a salary structure to each employee and define their base pay. The base salary is essential, as it serves as the foundation for all payroll calculations according to the assigned salary structure.

Creating Salary Slips Manually

Once a Salary Structure is created and assigned to employees through Salary Structure Assignment, you can generate Salary Slips for each employee individually.