Every month salary of all emoloyees has to be calculated by HR based on many factors.
Salary computation has to consider attendance, leaves, holidays, salary structure, overtime, loans and other deductions.
Thus salary computation system has to be linked to bio-metric machines, leave management system and accounts.
HR has to process attendance, add earnings and allowances and subtract deductions to arrive at the salary.
Salary slip has to be given to all the employees. And employees need to have complete visibility and clarity about their salaries and leaves.
Computation of salaries is a complex process.
The method to calculate the salary for each employee is different based on his/her grade.
Salaries are either on per month, per day basis or even on per hour basis. And there are shifts, weekly offs & holidays to be considered.
Companies have rules for late coming, early going and overtime. The salary formula has to consider these rules.
Government compliances have also to be taken into accounts. TDS, PT, ESIC and PF. Also loans and advances have to be deducted from salaries.
Each employee may have different leave structure. Also HR has to check whether employee had applied for leave and whether the leave was sanctioned.
OurSys ERP has a built-in HR Module and salary computation is a part of it.
OurSys picks attendance from attendance machines and processes as per the rules set for the company. It also checks for shifts, weekly offs and sanctioned leaves.
There is provision for employees to declare their tax saving avenues and TDS is set for deduction accordingly.
Earnings are calculated based on set formulas. Once earnings are calculated it considers all deductions such as TDS, PT, ESIC, PF, Loan Instalments and arrives at the salary figure.
There is a provision to directly email or print salary slips.
Employees can apply for their allotted leaves online and their managers sanction them in the system.
Thus salary of employees gets calculated quickly and accurately.
Further the salary gets posted to accounts as a voucher seamlessly.
The process of computing salary is deskilled and becomes efficient.
Error prone spreadsheets are avoided and there is complete transparency in the process. Huge amount of labour of processing attendance is also avoided.
All legal compliances are taken care off and ready reports for each government department are available.
Employees are able to check available leaves in real time and apply for leaves accordingly.
Salary slips are emailed to all employees thus printing of salary slips can be avoided.
Auto posting of vouchers saves lot of time of accounts and there is no dependency on people to provide information. Further bank advice for payment of salary can also be generated from the system itself making the whole process effortless.
The meticulous task of computing salaries becomes easy and hassle free.
Huge amount of time is saved as attendance is picked from attendance machine and processed directly. Also all the rules are taken care automatically in the calculations.
Errors in computation are completely eliminated and the process becomes transparent.
Employees are happy to get their payslips by email and they can check their balance leaves online anytime.
The officers can work on salaries even from their home thus making work from home possible for HR and accounts staff.