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Payroll software for Indian companies

Last reviewed · Checked against the product's payroll features

The short answer

Verdeshell HRMS is payroll software for Indian companies that computes PF, ESI, professional tax and TDS from the attendance and leave records HR already keeps. It produces payslips on the web, the PF ECR file, the ESIC return file and a Form 24Q worksheet, and settles full-and-final pay at exit with a gratuity estimate.

What a payroll run covers

Payroll in Verdeshell is not a separate tool fed by spreadsheets. It reads the same employee records, attendance, leave and approvals the rest of the HRMS runs on, so the numbers on a payslip trace back to a punch, a leave request or an approved input.

  • Salary structures and CTC. CTC is entered as a yearly figure and the structure splits it into monthly earnings, variable pay and employer contributions, with a preview before the salary is confirmed.
  • PF and ESI are computed every month using the PF and ESI settings your company chooses.
  • Professional tax is worked out from the state where each employee works, using state slabs that Verdeshell maintains.
  • Income tax (TDS) under the old and new regimes, with investment declarations, proof verification, a mid-year projection and previous-employer income for mid-year joiners.
  • Loss of pay comes from attendance and unpaid leave, divided by the base days your company chooses for a month.
  • Variable pay and one-off inputs — incentives, one-time earnings or deductions — go through an approval step before they reach the run.
  • Arrears are calculated retrospectively when a salary revision is backdated, and bonuses declared against a financial year are settled through payroll.

Statutory files and registers

Each payroll month produces the files and registers your accountant or CA works from. Verdeshell generates them; uploading returns on the government portals stays with your team or your accountant.

Payroll outputs and what they are used for
OutputWhat it is forHow often
PayslipsEarnings, statutory deductions, reimbursements and net pay for each employee, on the webEvery payroll month
PF ECR fileThe electronic challan-cum-return uploaded to EPFOEvery payroll month
ESIC return fileEmployee and employer ESI contributions for the monthEvery payroll month
Professional tax registerPT deducted per employee, by stateEvery payroll month
Salary register and month-on-month comparisonEvery line of the run, and what changed since last monthEvery payroll month
Form 24Q worksheet (Form 138 from tax year 2026-27)The quarterly TDS return on salaries, as a worksheet your team enters in Protean's Return Preparation UtilityEvery quarter
Form 16 and Form 12BAThe employee's annual TDS certificate and perquisites statement, for FY 2025-26 and earlier; from tax year 2026-27, Form 130 is issued through TRACESEvery financial year

Who decides what

Some payroll rules come from the law and are the same for everyone; others are your company's choice. Verdeshell keeps the two apart.

  • Verdeshell maintains the income-tax rates for each financial year and the state professional tax slabs, so a budget or a state notification does not mean editing formulas.
  • Your company decides its PF and ESI settings, its salary structures, the monthly divisor for loss of pay, its leave encashment rules, and every variable input. Where a setting looks unusual the product warns, but the choice stays yours.

How a payroll month runs

  1. Close attendance and leave for the month, so absences and unpaid leave are settled before pay is worked out.
  2. Add the month's variable pay and one-off earnings or deductions, and get them approved.
  3. Run payroll. Verdeshell computes earnings, PF, ESI, professional tax, TDS and loss of pay for every employee.
  4. Review the salary register and the month-on-month comparison to see who changed and why.
  5. Finalise the run and release payslips to employees on the web.
  6. Download the PF ECR file, the ESIC return file and the PT register for filing.

Exits and full-and-final settlement

When an employee leaves, the full-and-final settlement is calculated as part of offboarding: pending salary, leave encashment under your company's rules, bonuses and arrears due, notice-period recovery, PF, ESI and taxes. It waits for the clearance checklist across departments and goes through approval before it is paid.

Gratuity is paid under its own rules. The settlement shows a gratuity estimate and reminds you that it is due within 30 days of becoming payable.

Pricing

Payroll is included from the Starter plan; it is not a paid add-on.

Verdeshell HRMS plans (prices exclude GST)
PlanPriceWho it suits
Starter₹100 per user per month, 25-user minimumThe complete HRMS, including payroll, for smaller teams
Business₹50,000 per month for up to 1,000 usersLarger organisations that also want training, POSH, analytics, projects and contractor management
EnterpriseCustom pricingComplex, multi-entity organisations

Every plan has a 14-day free trial. There is no self-serve sign-up: book a demo and the Verdeshell team sets up your trial account after it.

What to know before you choose

  • Payslips are web only. They are not shown in the mobile app; the app covers attendance, leave, expenses and approvals.
  • Indian statutory files — PF, ESI, professional tax, Form 24Q and Form 16 — apply to employees working in India only.
  • Income tax is built in for India, the US, the UK and Germany. Employees in other countries need a manually configured tax component.

Frequently asked questions

Does Verdeshell HRMS generate the PF ECR file?

Yes. Every payroll month produces the PF ECR file for upload to EPFO, along with the ESIC return file and the professional tax register. A Form 24Q worksheet (Form 138 from tax year 2026-27) is prepared each quarter for your team to enter in Protean's utility, and Form 16 and Form 12BA each financial year up to FY 2025-26.

Does Verdeshell support both the old and new tax regimes?

Yes. Each employee's TDS is computed under the regime they declare, with investment declarations, proof verification and a mid-year projection. Employees who join mid-year can record their previous employer's income and TDS.

Who keeps the income-tax and professional tax slabs up to date?

Verdeshell does. The income-tax rates for each financial year and the state professional tax slabs are maintained for every customer. Your company decides its own PF and ESI settings and salary structures.

Are payslips in the mobile app, or web only?

Web only. Payslips and salary details are not shown in the mobile app; employees view and download their payslips from self-service on the web.

Can we try Verdeshell payroll before we buy?

Yes. Book a demo and the Verdeshell team sets up a 14-day free trial for your company, so you can run a real payroll month before deciding. There is no self-serve sign-up.

Ready to see Verdeshell HRMS in action?

Book a free 30-minute demo. After the demo we set up your 14-day free trial — no credit card required.