Payroll settings

How pay groups, components, structures, filing details, payslips, full and final, policies and the approval workflow are set up in Payroll › Settings.

Payroll › Settings is where payroll is set up before and between runs. You need the Payroll setup permission to change anything here. Without it you can still read every setting, and each page says so in one line.

Pay groups

Open a pay group from Settings › Pay groups to see its detail page. The page has eight tabs:

Summary: the cutoff, payday, pay days basis, contributions, structures and income tax at a glance, and a Missing details list. Each item reads Added or Not added, with a link to fix it.
Pay schedule: the cutoff day, the payday, and pay days in a month: actual days in the window, a fixed 30 days or a fixed 26 days.
Contributions: PF, ESI, PT and LWF as plain sentences from Maska’s rate tables. You can’t edit these. If a rate table is missing, the line says Runs blocked until Maska adds it.
Components and Structures: what this group uses, read-only, with links to the only places they are edited.
Taxes & deductions: the entity’s investment declaration window and the professional tax that applies.
Filing details: the entity’s PAN, TAN, signatory and registrations, read-only. They are edited in Setup › Organisation › Entities.
Other settings: one page with three sections: Payslip, Full & final and Miscellaneous.

Make default marks one pay group as the default for new joiners. Only one pay group can be the default.

When a change applies

A change to the pay schedule or to Miscellaneous applies from the next pay window that has not started yet. A run whose window has already started keeps the settings it started with. After you save, the page tells you the month the change applies from.

Components

Settings › Components lists every pay component. Switch between Recurring and Ad-hoc at the top.

Choose Edit on a component to set:

Income tax: taxable, exempt under a section of this year’s income tax rule, or partly exempt up to an annual cap. Only sections in the year’s rule are offered.
Proof required to claim: the employee attaches proof to get the exemption.
Overridable per employee: HR may set one person’s annual amount in Operations › Tools.

Order sets the one order that payslips, the pay register, reports and letters list components in. Move a row with its arrow buttons, or focus its handle and press Alt + ↑ or Alt + ↓.

Structures

In the structure builder each line reads as a formula, for example “HRA = 40% × Basic”.

A % line can have a monthly cap, for example at most ₹1,800 a month.
In arrears decides whether salary revision arrears count the line.
Meant for grades tags the structure with grades from Org › Grades. This is a suggestion when you assign pay, never a rule. If the preview CTC falls outside every tagged grade’s CTC band, the builder says so.

Filing details

Settings › Filing details shows each entity’s income tax identity (PAN, TAN, TDS circle and the certificate signatory) and its payroll registrations. Pick the entity at the top. This page is read-only: Edit in Organisation opens the entity’s Tax & registrations tab under Setup › Organisation › Entities, where these are changed. See Company legal data and documents.

PF: one or more establishments. Each one files its own ECR.
ESI: one or more establishments.
PT and LWF: one registration per state.

GST, Udyam, CLRA and outlet licences are kept in Organisation too, but they don’t show here because payroll doesn’t use them.

Payslip

The Payslip section in Other settings sets the logo alignment (the logo itself is uploaded on the entity’s Overview tab in Organisation), whether the entity address prints, the employee details printed, the optional blocks (income tax working, loans, leave summary, arrear breakup, overtime hours, pay outside CTC), whether zero lines are hidden, and a footer.

Preview sample downloads a sample payslip with your unsaved settings. It uses sample figures, never a real employee’s. Payslips already released keep the PDF they were released with.

Full & final, notice buyout and leave encashment

Other settings › Full & final sets the opening and closing notes of the settlement statement and whether the severance section prints.
Settings › Policies › Notice period buyout sets, per entity, what an unserved notice day is worth (Basic or Gross, divided by 26, 30 or the month’s days) and whether HR may waive it. A waiver needs a reason.
Leave encashment is part of each leave type’s policy. Settings › Policies lists every leave type’s rule and links to its Year end tab in Setup › Policies, where you set the basis, the days in the month and the most days encashed on exit.

Miscellaneous

Whether bonuses and expense claims are paid in the payroll run or separately.
Net pay rounding: exact paise, or the net rounded to the nearest rupee on its own line. PF, ESI, PT and TDS are never rounded by it.
Tax on a bonus: deducted in full in the month it is paid, or spread over the rest of the year.
Whether future bonuses count in this month’s TDS.

Approval workflow

Settings › Approval workflow is read-only. It shows who decides a compensation change, who locks payroll and how full and final is approved, with the people who hold each permission today. Change who holds a permission in Setup › Roles.