Feature Guides

HRMS Features for Indian Businesses: Payroll, Attendance and Compliance

The HRMS features an Indian company needs: attendance, leave, payroll with PF, ESI, PT and TDS, onboarding, performance and employee self-service.

Purushottam Kumar Suman
Purushottam Kumar Suman
Founder & CEO, Drema AI
8 min read
Team meeting in an office

An HRMS built for another country fails in India on payroll day. Statutory deductions vary by state, salary structures are built around allowances, and many employees work in shifts across sites. This checklist puts Indian payroll and attendance at the centre.

01

Employee records and onboarding

A clean employee master removes most downstream errors. Collect documents once, digitally, before the joining date.

Employee masterPersonal, bank, statutory IDs, reporting line and cost centre
Digital onboardingOffer letter, document upload and e-signature
Organisation chartDepartments, locations and reporting hierarchy
Asset allocationLaptops, ID cards and access, returned at exit
02

Attendance and leave

Attendance feeds payroll, so its accuracy decides whether salaries are trusted. Support more than one capture method because offices, factories and field teams work differently.

Multiple capture methodsBiometric devices, mobile with geofence, face recognition and web check-in
Shifts and rostersRotating shifts, night shifts, weekly offs and overtime
Leave policiesAccrual, carry forward, encashment and sandwich rules
RegularisationMissed punches corrected with manager approval
Holiday calendarsBy state and location
03

Payroll and statutory compliance

This is where Indian HRMS products are won or lost. Rules change with each budget and by state, so statutory logic should be configuration that can be updated without a release.

Payroll that needs a spreadsheet beside it every month is not finished.

Salary structuresBasic, HRA, allowances, variable pay and CTC breakup
Provident fund and ESIContribution calculation and return files
Professional tax and labour welfare fundState-wise slabs
TDS on salaryOld and new regimes, declarations, proofs and Form 16
Arrears, loans and advancesCalculated automatically across months
Bank transfer file and payslipsBulk payout file and password-protected payslips
Full and final settlementGratuity, leave encashment and recoveries
04

Employee self-service

Self-service is what reduces HR tickets. Put it on mobile, because most employees outside head office do not sit at a computer.

Payslips and Form 16Leave requestsAttendance viewTax declarationsReimbursement claimsLetters and certificatesHelpdesk ticketsCompany announcements
05

Performance, recruitment and learning

Add these once payroll and attendance are stable. Keep the first version of performance management simple: goals, a review cycle and a rating that feeds increments.

RecruitmentJob requisitions, candidate pipeline, interviews and offers
PerformanceGoals, check-ins, reviews and calibration
LearningMandatory training and completion records
Exit managementResignation, clearance and exit interviews
06

Reports, access and privacy

HR data is sensitive: salary, health, identity documents and bank details. Restrict access by role, log every view of salary data and keep employee consent and retention rules ready for the Digital Personal Data Protection Act.

State-wise
PT, LWF and holiday rules
2 regimes
TDS calculation must support both
Mobile
Where self-service should live
Purushottam Kumar Suman
Written by
Purushottam Kumar Suman
Founder & CEO, Drema AI

Founder and CEO of Drema AI. Builds AI systems, SaaS platforms and industry software — and writes about what actually survives production.

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