Salary Computation is a core component of the HR module in OurSys. It is a powerful and flexible utility designed to handle diverse payroll scenarios while ensuring full statutory compliance. Below is a detailed overview of its key features and functionality.
Flexible Salary Structures
OurSys allows you to define customised net salary calculation formulas for different categories of employees such as management, officers, staff, workers, and apprentices. You can create multiple salary templates, each with its own unique set of rules for calculating salaries.
The salary computation can be based on several parameters, including:
- Basic Salary (monthly, daily, etc.)
- Attendance
- Approved (sanctioned) leaves
- Allowances
- Statutory and tax-related deductions
- Loan and advance recoveries
- Other custom deductions
Basic Salary Configuration
The basic salary is defined in the employee master and can be specified on a monthly or daily basis. All allowances and deductions are calculated with reference to the basic salary.
Attendance Capture
OurSys supports multiple methods for capturing employee attendance:
- Biometric Attendance Systems: OurSys integrates via API with leading biometric machine manufacturers in India. Attendance data can also be imported from Excel files exported from such systems.
- Direct Punching: Employees can punch attendance directly into OurSys. The system records both in-time and out-time along with geo-location details.
- Manual Entry: Attendance can be entered manually when automated options are not available.
Attendance Processing
Raw attendance data consists of employee codes along with punch dates and times. OurSys processes this data to identify in-time and out-time entries. Manual overrides are permitted for handling exceptions, with a complete audit trail maintained for all changes.
Leave Management
HR teams can define leave policies for each employee category, specifying allocations for sick leave, earned leave, casual leave, and more. Employees can log into OurSys through a dedicated Employee Interface-available without additional user license requirements-to apply for leave online. Employees can view their leave balances while applying.
Leaves are routed to reporting managers for approval. Approved leaves are treated as paid leaves, while unapproved leaves are considered leave without pay.
Tax Compliance
OurSys supports all mandatory statutory deductions and generates relevant compliance registers, including:
- TDS Register
- Professional Tax Register
- Provident Fund Register
- Gratuity Register
For TDS calculations, employee-specific tax exemptions such as home loan interest or insurance investments can be configured, enabling accurate tax computation.
Loan Management
Loans issued to employees can be recorded in the system along with EMI details. The system automatically deducts the EMI from the salary until the loan is fully recovered.
Salary Advances
OurSys allows partial salary payments as advances. These advances are automatically adjusted and deducted during salary processing.
Overtime Calculation
You can define overtime rules within OurSys and automatically compute overtime compensation based on configured policies. The time of overtime is picked automatically from the attendance data.
Conclusion
OurSys ERP aspires to provide all the functionalities of all the departments in a single software in an integrated fashion. This integration will go a long way in the AI era which is about to begin in Indian MSME from 2026. In case you are still not using OurSys ERP's Salary computation, please do call us.