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Payroll SoftwareSalary Calculation Software with Automatic Net Pay
Salary calculation in India depends on the structure, the days worked and several statutory deductions. NexoraHRMS does the arithmetic from attendance and your rules, and shows a live preview of net pay before anything is saved.
Payable days from attendanceSalary structures & CTCArrears & one-time payLive net-pay preview
How Monthly Salary Is Calculated
Every payslip in NexoraHRMS is built the same way. First the salary structure gives the monthly components (Basic, HRA, special allowance and any heads you add). Then payable days are worked out from attendance: present days, approved paid leave, holidays and weekly offs count; unpaid leave and absence become loss of pay. Earnings are pro-rated for those days.
Next come additions such as overtime, shift allowance, arrears and one-time earnings, then deductions: PF, ESI where covered, state-wise Professional Tax, TDS, loan EMI and other deductions. What remains is net pay.
Salary Calculation at a Glance
| Step | What the software does | Where the data comes from |
|---|---|---|
| Gross | Applies Basic %, HRA % and allowances to monthly salary, or follows a salary structure | Employee record, salary structure, Company Settings |
| Payable days | Counts present, paid leave, holidays and weekly offs; reduces for loss of pay | Attendance, leave, holiday calendar, shift roster |
| Earnings add-ons | Adds overtime, shift allowance, arrears, incentives, one-time earnings | Overtime approvals, off-cycle runs, incentives |
| Statutory deductions | PF, ESI, Professional Tax, TDS | Wage ceilings, PT slabs by state, tax regime and declarations |
| Other deductions | Loan EMI, advances, other recoveries | Loans & Advances module |
| Net pay | Gross minus deductions, with a live preview and duplicate-run protection | Payroll run |
Salary Structures, CTC and Hourly or Daily Pay
Not everyone is paid the same way. Switch on salary structures to define your own earning and deduction heads, mark which count for PF or ESI and which are taxable, and work out a structure from annual CTC. Effective-dated revisions apply from the day they take effect, so a mid-month increment is split correctly.
Daily, hourly and weekly wage staff are paid from hours or days worked, with a wage-run screen and bank file for contract or factory workers. Everything flows into the same payslip and reports.
- Custom earning and deduction heads, with PF/ESI/taxable flags
- CTC calculator and structure templates
- Effective-dated salary revisions with dual-control approval
- Daily, hourly and weekly pay types
Net Pay in Words, Year-to-Date and a Payslip to Match
The result of the calculation is a payslip the employee can read: attendance summary, leave balance, earnings against deductions, net pay in words and year-to-date totals. Because the payslip and the payroll report use the same numbers, finance, HR and the employee never see different figures.
- Net pay in words on every payslip
- Year-to-date earnings and deductions
- Locked months keep payslips unchanged
Why Automatic Salary Calculation Beats a Spreadsheet
Spreadsheet formulas break when someone inserts a row, forgets to update a PT slab or copies last month's sheet. Automatic calculation applies the same rules to every employee every month and flags exceptions. For a longer discussion read how to calculate salary in India and payroll software vs Excel.
Salary Calculation Software for India – FAQ
From the salary structure for the month, adjusted for payable days (attendance, leave, holidays and loss of pay), plus additions like overtime and arrears, minus statutory and other deductions.
Yes. Unpaid leave and absence reduce payable days, and half-day attendance counts as half a day, so earnings are pro-rated automatically.
Yes. With salary structures switched on you can add earning and deduction heads and mark whether each counts for PF, ESI and tax.
With effective-dated salary switched on, the new salary applies from its effective date and the month is calculated day-weighted.
Yes. Daily, hourly and weekly pay types are supported with a wage-run screen, and the amounts feed bank files and payslips.
Yes. A live preview shows gross, deductions and net pay before the run is saved, and duplicate runs for the same month are blocked.
See NexoraHRMS Payroll on Your Own Data
Share your salary structure and get a free live demo of NexoraHRMS & Payroll. No commitment; we typically respond within 24 hours.