Configure Payroll Policies
Company Setup
Payroll policies define how the organization manages employee compensation, attendance, and statutory compliance. Navigate to Company Settings → Payroll Policies.
A. Work Schedule Settings
- Weekly Workdays – 5-day/6-day week or custom.
- Shift Configuration – multiple shifts, flexible hours, rotational shifts.
- Grace Periods – late entry/early exit tolerance.
B. Holidays & Leave Framework
- Public Holidays – add region-specific or organization-wide holidays.
- Leave Types – CL, SL, EL, compensatory off, maternity/paternity leaves.
- Carry-Forward Rules – maximum carry-forward limits, lapse rules, and encashment policies.
C. Overtime Eligibility
- Hourly/Monthly Basis – overtime rate derived from basic wage or gross wage.
- OT Multipliers – 1.5x, 2x, or custom values.
- Approval Workflow – manager or HR approval required.
D. Bonus & Incentive Configuration
- Eligibility Criteria – tenure, designation, grade, performance ratings.
- Calculation Methods – flat rate, percentage of basic, or CTC-based bonus.
- Payout Cycle – annual, quarterly, or ad-hoc.
E. Salary Rounding Rules
- Nearest rupee.
- One/five/ten-rupee rounding.
- Decimal Precision – up to two decimals if required for reimbursements.
Best Practices
- Conduct an annual review of payroll policies to align with government guideline changes, internal restructuring, and expansion into new states or locations.