Indian payroll has multiple mandatory deductions that reduce take-home pay: Employee PF at 12% of PF wages, Employee ESI at 0.75% of ESI gross for eligible employees, Professional Tax as per state slab (typically Rs 200 per month for gross above Rs 15,000 in Maharashtra), and TDS under Section 192 computed on annual taxable income. Zoho Payroll calculates each deduction automatically.
After a pay run is finalised in Zoho Payroll, the system generates a bank transfer file (NEFT/RTGS format compatible with major Indian banks). The transfer amount for each employee equals their net salary. Bank transfer files can be downloaded and uploaded directly to the company’s bank portal.
If an employee has unpaid leave days in a month, Zoho Payroll applies Loss of Pay (LOP) to reduce gross salary proportionally before computing deductions. This means net salary changes each month with attendance. The payslip clearly shows the LOP deduction as a line item so employees can reconcile their pay.
Net Salary is the take-home amount an employee receives after all deductions, including PF, Professional Tax, TDS, and any loan recoveries, are subtracted from gross salary. Zoho Payroll computes and disburses net salary during each pay run.
Zoho Payroll calculates net salary as Gross Salary minus all employee-side deduction components configured in the salary structure. Statutory deductions (PF, ESI, PT, TDS) are computed automatically based on applicable rules, and voluntary deductions (loans, advances) are applied as configured per employee.
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