HRMS & Payroll in India: Automating PF, ESI, TDS and Leave
· 7 min read · Krusam Team
An HRMS keeps one record per employee and turns attendance and leave into payroll automatically, calculating statutory deductions such as PF, ESI, professional tax and TDS. It removes month-end spreadsheet work and gives employees self-service payslips and leave balances.
The statutory components of Indian payroll
Indian payroll typically involves these deductions and contributions — rules and thresholds change, so a good HRMS keeps them configurable:
- Provident Fund (PF): employee and employer contributions, commonly 12% of basic wages each, subject to the wage ceiling
- ESI: applies to employees under the notified gross wage limit, with separate employee and employer rates
- Professional Tax: set by each state, with different slabs
- TDS on salary: income-tax deducted monthly based on the chosen tax regime and declarations
From attendance to payslip, automatically
When check-ins, shifts and approved leave live in the same system as salary structures, payroll becomes a review step instead of a three-day project. Payslips are generated and shared with employees in one click.
Where AI helps HR
Most HR teams answer the same questions every day: leave balances, policy details, holiday lists. An AI HR assistant answers them instantly from your own policies and the employee’s own records, so HR can focus on people instead of repetitive queries.
Frequently asked questions
Does the HRMS support multiple branches?+
Yes — multi-company and multi-branch setups with state-specific professional tax rules.
Can it handle UAE payroll?+
Krusam AI HRMS can be configured for UAE requirements such as WPS salary files and gratuity calculations.