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Payroll software for India · 19:45 IST, month close

Payroll where every line says why.

Locked attendance becomes paid days. PF, ESI, professional tax and TDS are worked out on the rules in force that month, with the date each rule started. A second person approves, and every employee gets a payslip they can question line by line.

Request an inviteSee how PF and ESI are worked out

Included in LekhaHR Operations: ₹79 per employee per month on annual billing for the first 25, no minimum; GST extra. See every band

because since 21 Nov 2025 a wage slip is a legal duty under the Code on Wages, and every line on it should survive a question.

Rohan Das · September 2026 payslip

1–30 Sep · Customer Success Associate · Paiteq, Karnataka

Paid days
29.5 of 30

LOP 0.5 day · because 16 Sep was a half day with no fix before the cutoff; 29 Sep goes to October's run.

Basic
₹7,867

because ₹8,000 a month × 29.5/30 paid days.

Special allowance
₹2,950

because it counts as wages for PF and ESI, as it is not one of the listed exclusions.

HRA and conveyance
₹6,490

because they are 37.5% of pay, under half, so nothing is added back to wages.

Gross earnings
₹17,307
EPF, employee 12%
−₹1,298

because 12% of ₹10,817 wages, below the EPF ceiling all month (₹15,000 to 16 Sep, ₹25,000 from 17 Sep 2026), so PF is on all of it.

ESI, employee 0.75%
−₹82

because 0.75% of ₹10,817 wages as the Code defines them is ₹81.13, rounded up to the next rupee.

Professional tax, Karnataka
₹0

because Karnataka levies no PT below ₹25,000 gross a month.

Income tax (TDS)
₹0

because his projected income for tax year 2026-27 is below the basic exemption limit, so no tax is deducted and no Form 130 (earlier Form 16) is due.

Take-home
₹15,927
Issued 30 Sep 2026, 19:45 IST
to HDFC Bank ••••2291Payslip issued30 Sep 2026
Design preview · sample data · Paiteq Technologies

19:45

IST · No. 01 · month close

because a payslip is only as right as the days under it, and those days were already approved by the people who saw them.

The run starts from a locked month.

Payroll reads paid days from attendance and leave after they lock, not from a spreadsheet someone keyed in. The salary month is the calendar month. Loss of pay comes from an attendance window you set, so a late absence is settled next month instead of guessed.

Paiteq Technologies/ Pay runs / September 2026

September 2026 salary · 42 people

  1. Attendance window closesFri 25 Sep
  2. CalculateSat 26 Sep
  3. ReviewMon 28 Sep
  4. Approve and lockTue 29 Sep
  5. Bank fileTue 29 Sep
  6. PayslipsWed 30 Sep
Salary month
1–30 Sep
Loss-of-pay window
26 Aug – 25 Sep
Leave without pay
4 people, 6 days
Design preview · sample data

Paid days from locked attendance

Half days, regularised punches and approved leave arrive with their reasons.

A window for loss of pay

Absences after the cutoff move to next month's run, written as an adjustment.

Salary structures per person

Basic, allowances and their PF and ESI treatment are set once and reused.

Joiners and leavers mid-month

Paid on the days in the month they were with you.

No. 02

Review

because nobody should approve a total they cannot take apart.

Calculated Sat 26 Sep 2026 · revision 1

Why this month is ₹30,580 more than last.

Before anyone approves, the run explains its own change from last month, cause by cause. The biggest movements per person sit under it, each opening to the day or rule that caused it.

Why September is ₹30,580 more than August42 people · by cause

  • JoinersHarsh Patel and Bhavna Choudhary+₹1,12,400
  • PF ceiling, employer cost18 people above ₹15,000, 17–30 Sep on ₹25,000+₹10,080
  • Referral bonusKarthik Iyer+₹15,000
  • Leave without pay4 people, 6 days−₹10,500
  • Leaver in AugustPaid in full last month−₹96,400

Bars grow right for more pay and left for less. Each cause opens to the people in it.

Design preview · sample data · Paiteq Technologies

No. 03

Statutory

because a rate without its start date is a guess about which month it applies to.

How does payroll software work out PF, ESI, PT and TDS?

It applies the rules in force for the salary month: PF and ESI on wages as the Code defines them, professional tax on your state's slabs, and TDS on projected income for the tax year. In LekhaHR every rate and ceiling carries the date it took effect and its law, and a mid-month change splits the month.

01Wages for PF and ESI
Code wages

because since 21 Nov 2025 wages are basic, DA and retaining allowance. Special allowance counts unless it is a listed exclusion. If HRA, conveyance and other exclusions pass half of total pay, the excess is added back.

02EPF, employee and employer
12% each

because PF is counted on PF wages up to ₹25,000 a month from 17 Sep 2026 (₹15,000 before). Of the employer's 12%, 8.33% of wages up to the ceiling goes to the pension scheme and the rest to the PF account.

03ESI, employee and employer
0.75% · 3.25%

because ESI covers people whose Code wages are up to ₹21,000 a month, and contributions are rounded up to the next rupee.

04Professional tax
by state

because each state sets its own slabs. Karnataka charges nothing below ₹25,000 gross a month, and the Constitution caps PT at ₹2,500 a person a year.

05Income tax (TDS)
projected yearly

because tax is projected for the year from each person's regime and their declarations on Form 124 (earlier Form 12BB). Where tax was deducted, the year-end Form 130 (earlier Form 16) is generated on TRACES.

06Labour welfare fund
where it applies

because only some states collect it, on their own dates.

Each rate shows its effective date and source in the product · checked by the LekhaHR team, reviewed 30 Sep 2026

How September 2026 splits

By calendar days of the salary month, never the attendance window

1–16 Sep · ₹15,000 × 16/30
₹8,000
17–30 Sep · ₹25,000 × 14/30
₹11,667
September ceiling
₹19,667
Employee PF, 12%
₹2,360
Example: PF wages ₹30,000, PF counted up to the ceiling, no leave without pay.

₹25,000 from 17 Sep 2026 · Ministry of Labour & Employment notification S.O. 5109(E), under the Code on Social Security, 2020

Design preview · sample data

No. 04

Approve and lock

because the person who runs payroll is usually paid by it too.

One person prepares. A second person approves.

The person who runs payroll sends the month with notes on anything unusual. The approver sees the totals, the causes and the notes, then approves and locks. After the lock, a change is a new revision with its reason, and the old figures stay on record.

Approve September 2026 salary

Sent by Priya Menon, Operations Lead · to Meenal Joshi

People paid
42
Change from August
+₹30,580

because of 5 causes, each shown on the review

Notes from the preparer
2

because Karthik Iyer's referral bonus is his first one-time payment, and one joiner's PAN is still pending

Pay day
Wed 30 Sep
Approved and locked Tue 29 Sep · 18:12 IST
by Meenal Joshi · revision 1Payroll lockedSep 2026 · rev 1
Priya Menon
prepares the run, adds notes, sends it
Meenal Joshi
approves and locks, or sends it back with a reason

because the approver can be anyone you choose: a founder, a finance lead or your accountant, with access to payroll and nothing else.

Design preview · sample data · Paiteq Technologies

No. 05

Payslips

because a payslip in an inbox attachment is a payslip anyone can forward.

A link and a one-time code, never an attachment.

On pay day each person gets an email with a link to their payslip in LekhaHR. Opening it asks for a one-time code. Every line opens to its reason, and a question on a line goes to payroll, not to the person's manager.

09:00Paiteq

Pay · September 2026

₹15,927

take-home · sent to HDFC Bank ••••2291

  • Gross earnings₹17,307
  • EPF, your share−₹1,298
  • ESI, your share−₹82
  • Professional tax₹0

Your question · EPF line

Why is PF ₹1,298 and not on my full ₹17,307?

Priya Menon · payroll

PF is 12% of PF wages: basic ₹7,867 plus special allowance ₹2,950 for 29.5 paid days. HRA and conveyance are excluded, and they are under half your pay, so nothing is added back.

Design preview · sample data

From LekhaHR · to Rohan Das

Your September 2026 payslip is ready

Open it in LekhaHR. We'll ask for a one-time code sent to your phone. This email has no attachment.

  • Payslips open only after a one-time code, on the web or the phone.
  • Every past payslip stays with the person, including after they leave.
  • Questions are answered by payroll and kept on the line they are about.

Design preview · sample data · Paiteq Technologies

No. 06

Full and final

because the last payslip someone gets from you is the one they remember.

F&F worked out in time for 2 working days.

The Code on Wages asks for wages due on exit within 2 working days. LekhaHR freezes the facts on the last day (attendance, leave balance, claims, recoveries) and works out the settlement with a reason on every line, so it can be approved and paid in its own batch.

Sanjay Mishra · full and final

Last day Fri 25 Sep 2026 · Accounts Executive

Salary, 1–25 Sep
₹15,000

because 25 of 30 days at ₹18,000 a month

Earned leave, 6 days
₹2,400

because Code wages ₹12,000 ÷ 30 × 6 days left in the balance

EPF, 12%
−₹1,200

because 12% of ₹10,000 PF wages for the 25 salary days; not on leave encashment

ESI, 0.75%
−₹75

because 0.75% of ₹10,000 Code wages for the salary days; not on leave encashment

Professional tax, Karnataka
₹0

because his monthly gross is below ₹25,000

Net to pay
₹16,125
Due by Tue 29 Sep 2026
2 working days after the last dayF&F approvedMon 28 Sep
Gratuity
own timeline

because it has its own eligibility and due date, shown separately

PF balance
with the PF office

because he withdraws or transfers it with his UAN after the exit date is marked

Income tax (TDS)
nil

because his projected income for tax year 2026-27 is below the basic exemption limit, so no tax is deducted and no Form 130 (earlier Form 16) is due.

2 working days · Code on Wages, 2019, s.17(2) · in force 21 Nov 2025

Design preview · sample data · Paiteq Technologies

No. 07

Outputs

because your accountant should get files, not a login to a black box.

Files for the bank and your accountant.

Once the month locks, LekhaHR makes the bank file and the reports from the locked register. You upload the bank file to your bank. You or your accountant file the returns and pay the dues.

Bank file · made from the locked register

Salary for September 2026

Format
Your bank's bulk upload
IFSC codes checked
42 of 42 valid
Bank details changed since the lock
None
Credit on
Wed 30 Sep 2026

Account numbers stay masked on screen. Every download is recorded. After the bank pays, mark the batch paid and each person sees it.

Design preview · sample data · Paiteq Technologies

  • Salary registerXLSX · every person, every component, with the revision
  • Accounting journalCSV · mapped to your ledgers
  • PF contribution reportWages and shares per member, for the PF portal
  • ESI contribution reportCode wages and shares per insured person
  • Professional tax summaryBy state, for the state's return
  • TDS workingMonthly figures for Form 138 (earlier Form 24Q)
  • Form 130 (earlier Form 16)For each person with tax deducted; generated on TRACES from your Form 138 (earlier Form 24Q) returns. LekhaHR prepares the salary figures.

What LekhaHR does not do

LekhaHR does not file returns or deposit PF, ESI, PT or TDS, and it does not move money. It prepares the figures and files, with the working behind each one, for you or your accountant to file and pay.

Is LekhaHR payroll right for you?

No. 08 · Written for you if

Payroll you can explain to the person being paid.

  • You pay from 2 to a few hundred people in India, in-house or with an accountant.
  • You want each payslip line to show the rule, the rate and the date behind it.
  • You want attendance and leave to feed payroll without re-keying.
  • Your accountant files the returns and wants clean reports from a locked month.

No. 09 · An honest note

When LekhaHR payroll isn't the right choice

  • You want your software to file returns or deposit PF, ESI or TDS for you.
  • You want an outsourced payroll service where someone else runs the month.
  • You pay people outside India or in another currency.

No. 10

Questions

because the questions people ask before switching payroll are mostly about who files what.

Questions about payroll in LekhaHR

What is payroll software?

Payroll software works out each employee's pay for the month from the salary structure, attendance and leave, applies deductions such as PF, ESI, professional tax and TDS, and produces payslips, bank files and statutory reports. In LekhaHR every line shows the rule and effective date behind it, and a second person approves the run.

What should payroll software for a small business in India do?

Look for four things: PF, ESI, PT and TDS worked out on the current rules with effective dates; paid days taken from attendance without re-typing; a second person approving before the month locks; and a price that fits your headcount. LekhaHR does all four for teams from two people.

Does LekhaHR file PF, ESI, PT or TDS returns for us?

No. LekhaHR calculates each contribution and deduction, shows why, and prepares the reports and files for PF, ESI, PT and TDS, including the figures for Form 138 (earlier Form 24Q). You or your accountant file the returns and make the payments on the government portals.

How does LekhaHR handle the EPF wage ceiling rising to ₹25,000?

The ceiling is ₹25,000 a month from 17 Sep 2026 (₹15,000 before). For September 2026 the ceiling is split by calendar days of the salary month: 1 to 16 Sep on ₹15,000 and 17 to 30 Sep on ₹25,000. Each person's PF line shows the split it used.

Is ESI worked out on gross pay?

No. Since 21 Nov 2025, ESI coverage and contributions use wages as the Code on Social Security defines them: basic, DA and retaining allowance, with excluded items such as HRA added back where they pass half of total pay. The ₹21,000 coverage ceiling is tested on that figure too.

Where does loss of pay come from?

From attendance and leave. You set an attendance window, for example 26 Aug to 25 Sep for September salary, and the locked days in that window become paid days and loss-of-pay days. The salary month itself stays the calendar month.

How is full and final settlement handled?

LekhaHR works out the F&F from the last day's facts: salary for the days worked, leave encashment, recoveries and statutory deductions, and shows the due date, 2 working days after the exit under the Code on Wages. Gratuity and PF follow their own timelines.

How do employees get their payslips?

Each person gets an email with a link to their payslip in LekhaHR, never the payslip as an attachment. Opening it asks for a one-time code. From the payslip they can raise a question on any line, and it goes to whoever runs payroll, not to their manager.

No. 11 · Invitation

By invitation.

We open LekhaHR to a few teams at a time, from teams of two. Tell us how you run payroll today and we'll reply by email.

Request an inviteSee pricing