Set when payroll runs, how salaries are calculated, and which earnings and deductions make up your salary structure.
Payroll Settings is where administrators set up the rules behind every payroll run: the processing schedule, how salaries are calculated for new joiners and leavers, how Loss of Pay and overtime are worked out, and the salary components that make up each employee’s pay. Once configured, PrimeHR applies these rules automatically, so salaries are calculated the same way every month.
How to Access Payroll Settings
Log in to the Admin Panel.
Go to Settings → Organization Settings → Payroll & Compliance.
Processing Schedule
Set when payroll is calculated and when salaries are paid.
Payroll Processing Mode - the attendance period payroll is calculated on, such as the Full Month (1st to last day) or a cutoff-date period (for example, the 26th of one month to the 25th of the next)
Processing Date - the day of the month when payroll calculations are finalized
Auto-Run Payroll - turn on to have PrimeHR create the payroll run and calculate salaries automatically on the processing date. An administrator still needs to review and finalize it.
Salary Payment Date - the day of the month salaries are credited to employees
The Payroll Processing Timeline on the page shows your processing and payment dates, so you can see at a glance when payroll is calculated and when salaries go out.
Calculation Rules
Decide how salary amounts are calculated in special cases.
Rounding Rule - how calculated salary amounts are rounded
Round Multiple - the amount salaries are rounded to, such as the nearest ₹1 or ₹10
Arrears Handling - how past salary adjustments (arrears) are paid, such as adding them to the current month’s salary
New Joiner - how salary is calculated for employees who join partway through a payroll period, such as pro-rata (paid only for the days they worked)
Exiting Employee - how salary is calculated for employees who leave partway through a payroll period
LOP Basis - the basis used to calculate Loss of Pay (salary deducted for unpaid leave or absence), such as working days
Future Day Attendance - how days that haven’t happened yet are treated when payroll is processed before the month ends
Overtime Basis - the day count used to calculate overtime pay, such as calendar days
Daily Wage Payroll
Pay daily-wage or labour employees based on the days they work, instead of a fixed monthly salary.
Turn on Enable Daily Wage Payroll.
In each eligible employee’s profile, set Payroll Calculation Mode to Daily Wage.
These employees are then paid their per-day rate multiplied by their payable days for the period. For example, an employee with a per-day rate of ₹600 who has 26 payable days is paid ₹15,600. Employees on the default Monthly mode aren’t affected.
Salary Components
Salary components are the earnings and deductions that make up your salary structure, such as Basic Salary, House Rent Allowance (HRA), Special Allowance, LT Allowance, Provident Fund (PF), and Employee State Insurance (ESIC).
How to Add a Salary Component
Click Add Component.
Enter the component details and set how it’s calculated.
Set whether it’s statutory, taxable, and active.
Save the component.
Component List
For each component, the list shows:
Component Name - the name of the component
Type - Earning or Deduction
Category - the kind of component, such as basic, allowance, or statutory
Frequency - how often it’s calculated, such as monthly
Calculation - the percentage or value used to calculate it
Statutory - whether it’s a statutory (legally required) component, such as PF or ESIC
Taxable - whether it’s taxable
Status - whether it’s active
Actions - manage the component
Saving Changes
Review your changes.
Click Save Changes to apply them, or Discard Changes to undo anything you haven’t saved.
Set up payroll according to your organization’s salary policies and applicable statutory requirements, and check your calculation rules before running payroll.
Related Settings
Leave and Attendance Settings - leave, attendance, and overtime rules that feed into payroll
Company Information - your payslip template, tax details, and bank details
Letter Templates - include salary components in offer, appointment, and salary revision letters
Why it helps
Salaries are calculated the same way every month, using your rules
New joiners, leavers, arrears, and LOP are handled automatically
Pay daily-wage employees alongside monthly staff, in one payroll
Auto-run payroll saves time while keeping final approval with your team