Payroll Guidelines and FAQs - V1

Payroll Document
Document Summary
Item Value
Organization Razorpay Software Pvt. Ltd.
Document Name Payroll Guidelines
Classification Internal
Created By Reddi Ramu
Document Revision History
Reason for
Date Version Reviewed by Revised by Approved by
Update
Initial
30-Nov-21 1.0 Kapil Raj Soni --- Navin Hariharan
Version
change
from
01-Apr-23 1.1 Kapil Raj Soni --- Navin Hariharan
Acepay to
ADP
Copyright © 2023 Razorpay Software Pvt. Ltd.

Payroll Document
INDEX
1. Compensation Structure
2. Flexible Benefits Components
3. Payroll Tool - ADP
4. Payroll Helpdesk On ADP
5. Payroll Query Escalation Matrix
6. Flexible Benefits Claim Process
7. Income Tax Declarations
8. Income Tax Proof Submission Process
9. Salary Processing And Credit
10. Frequently Asked Questions On Payroll (FAQs)

Payroll Document
Introduction
At Razorpay, it is our constant endeavour to provide best compensation structure to
enhance value for our employees. This document guides through various salary components,
available Flexible salary benefits, Income Taxes and various other payroll processes.
Scope
These guidelines are applicable to all the full time employees of Razorpay.
Guidelines
A. COMPENSATION STRUCTURE:
The Compensation Structure at Razorpay is fairly simple and still tax friendly for employees.
CTC is the combination of fixed components (Basic, HRA and Flexible Benefits), Variable
component (Performance Bonus) and other Benefits (PF, Gratuity and Insurances).
Below are the component wise details.
1. Basic:
Basic salary of an employee is their base income. It is a fixed component of an
employee’s CTC. At RazorpayPOS, Basic is 50% of employee’s Fixed CTC.
2. House Rent Allowance (known as HRA):

A house rent allowance is that component of the CTC, which is paid to employees for
meeting the cost of renting a home. It offers tax benefits to the employees for the sum
that they pay towards their accommodation every year. Employees residing in rented
homes can claim this exemption and reduce their tax liability. At Razorpay, HRA is kept
at 40% or 50% of the employee's Basic component based on employees’ work location.
3. Flexible Benefit Components (FBC):

The Flexible Benefit Components has been introduced with a view of providing more
flexibility in planning salary and taxes the way that best suits employee’s plans and
requirements. In-order to avail the benefits of FBC, employees have to update their
preferences of flexible components on the ADP portal. The complete details of the
Flexible Benefits components are provided in the subsequent section.
4. Performance Bonus:
Razorpay always believes and drives a high performance culture. In addition to the
above fixed salary components, Employees are eligible for performance bonus, which is
part of employees’ CTC. Depending on an employee's function or role, the Performance
Bonus is paid based on employees performance on a quarterly or bi-annual basis.
Please refer to the Performance Bonus Policy for more details.

Payroll Document
5. Employer's contribution to PF:

Employee Provident Fund is an employee benefit scheme where investments are made
by both the employer and the employee each month. It is a savings platform that aids
employees to save a portion of their salary each month. 12% of an employee’s basic
salary is automatically deducted and goes to the Employee Provident Fund every month.
The contributions are maintained by the Employees Provident Fund Organization
(EPFO). At Razorpay, we follow a hybrid model towards PF contribution. A default and
minimum PF contribution of INR 1800/- per month from the employee and INR 1800/-
per month from the employer is made towards the employee’s PF account. In case an
employee wishes to enhance their PF contribution to 12% of actual basis, it can be
done. Changes in PF plan (from 1800 to 12% of actual basis or vice-a-versa) can be
done once in a Finance year by filling the PF change request form. The additional
amount of employer contribution is adjusted from employee’s Flexible Benefits
components / Special Allowance.
PF Transfer process is made on-line through EPFO portal. Please refer to the PF
Transfer document for more details available in Alpha.
6. Gratuity:
The gratuity amount is paid in gratitude for the services rendered by the individual during
the period of employment. Gratuity is a lump sum benefit paid by the employer to those
employees leaving the organization post their exit. This is only payable to those who
have completed 4 years 6 months or more with Razorpay. The payout is calculated as
per the Gratuity Act 1972.
7. Medical and Accident Insurance Premium:

To ensure that the employees and their family members (Parents, Spouse and 2
children) are covered for the medical and accident insurance from day one, the
Insurance premium towards both the insurances is part of the CTC, that gets paid to the
insurance company.
Please log on to Alpha to know more about Insurance benefits.

Payroll Document
B. FLEXIBLE BENEFITS COMPONENTS:
Flexible Benefits components provided at Razorpay offer additional tax savings over and above
80C limits.
Below are the details on Flexible Benefit Components
Component Per month Nature of Payment

Upper limits
Meal Voucher INR 1,100/ 2,200 Monthly. It will be processed during the
first week if the subsequent month
through Sodexo card
Gift Voucher INR 417 Will be processed as an E-gift voucher

by the end of the Financial Year.
Communication It will not be paid as monthly

Reimbursement INR 3,000 Allowance. It
will be paid based on submission of

bills only
Up to 8.33% of
LTA Reimbursement current basic It will not be paid as monthly
Allowance. It will be paid based on
submission of bills only.
Up to 10% of Will be deducted from your salary

National Pension
basic and deposit to your NPS account.
Scheme (Employers
Also, income tax exemption will be
Contribution Under
given under
Sec-80CCD (2))

Payroll Document
It will not be paid as monthly

Allowance. It will be paid based on
Driver Reimbursement INR 900 submission of bills only

INR 1,800 if car Allowance. It will be paid based on
CC < =1.6 and submission of bills only
Fuel Reimbursement INR 2,400 if car
cc is >1.6

Health and INR 2,000 Allowance. It will be paid based on
Fitness
Reimbursement submission of bills only

Learning and INR 2,500 Allowance. It will be paid based on
development
submission of bills only

INR 1,500 Allowance. It will be paid based on
Books and Periodicals submission of bills
only
1) Leave Travel Allowance (LTA):

● As per Income Tax rules and Company policy, LTA is exempt to the tune of:
○ Travel by air: Actual amount spent on economy class airfare for the family
to any destination in India, by the shortest route or Leave Travel
allowance whichever is lower.
○ Travel by train: Actual amount spent on A.C. first class rail fare for the
family to any destination in India, by the shortest route or Leave Travel
allowance whichever is lower.
○ Family: Travel will be available for employee alone or his/her family,
where family includes the employee’s spouse, children and wholly or
mainly dependent parents, brothers, and sisters.

Payroll Document
● The exemption is available only on the actual travel costs i.e., the air, rail or bus
fare incurred by the employee. No expenses such as local conveyance,
sightseeing, hotel accommodation, food, etc., are eligible for this exemption.
● Block Year: A block year is different from a financial year and is decided by the
Government for LTA exemption purposes. It comprises 4 years each. The block
applicable for the current period is the calendar year 2022-25. Employee can
claim twice in the block of 4 calendar years. Also 6 months gap should be one
journey to another journey
● Employee needs to submit proof of travel such as tickets, boarding pass, invoice
provided by travel agent etc. along with LTA Form.
● International travel expenses can not be claimed under LTA.
2) Meal Voucher
● We have a tie-up with Zeta for the Sodexo Meal vouchers.
● Employees who opt-in for this, will be able to access virtual meal vouchers
through Zeta App and will also be receiving the physical card.
● During the first week of the subsequent month, the zeta account gets credited
with the subscribed amount.
● The amount can be used to purchase food and grocery items.
● Employees are also provided with the physical Sodexo card. The same can be
collected from the Office after 1 month of opting in this benefit.
● It is mandatory to update KYC documents of the employee on the sodexo portal.
3) Gift Voucher
● E-gift vouchers are paid to the employee by the end of the Financial Year..
4) Communication Reimbursement :
● Employees are allowed to claim ONE Post-paid Mobile Phone, Broadband &
Landline bill.
● All the bills should be in the name of the employee. In the case of a Broadband
bill, the address should be the same as available with the HR record.
● Employees, claiming Mobile Expenses Reimbursement or mobile phone provided
by the company, are not eligible for Communication Allowance.
● The bill date of Mobile Phone or Broadband should be after the date of joining the
organisation. Previous year bills will not be considered for reimbursement.
● Employees are responsible for submitting legible bills. Illegible or unreadable bills
will not be entertained for claiming the reimbursement.
5) Books & Periodicals:

● Employees can purchase newspapers, books, periodicals, journals, and submit
actual bills for reimbursement.
● Employees pay for books, periodicals, journals or newspapers using their own
credit/debit card or by cash.

Payroll Document
● Reimbursement of expenses towards Books and Periodicals are based on

evidence of “actual spending by the employees” and incurred solely for the
purpose of academic and educational material which is related to the nature of
duties performed by the employee. Tax deduction would be available upon
submission of bills.
● Managers would be required to approve of such courses and invoices submitted
by their reports as evidence to substantiate that the expenses towards the books
and periodicals were completely for official purposes.
6) Learning & Development (Education Assistance):

● L & D is for the purpose of encouraging employees to undergo learning &
development courses related to his/her profession.
● This will include, short term courses, certifications etc.
● Employees need to submit the original receipts of payments along with course
completing proofs.
● Only registered or regulated institute’s payment receipts will be entertain for
● claiming the reimbursement.
● Proper documentation in relation to academic courses undertaken, date and
amount of expenditure must be furnished by the employee such as manager’s
approval email, enrolment certificates, course completion certificate etc. with
respect to the payments made in-order to claim a tax benefit.
7) Fuel Reimbursement:
● For fuel reimbursement, an employee can submit a cash memo of Petrol/Diesel
/CNG procured from authorised fuelling stations only.
● Illegible or unreadable, photocopy bills or credit card charge slips will not be
entertained for claiming the reimbursement.
8) Driver Salary Reimbursement:

● To avail the benefit of tax under this component, employee will need to submit
relevant documents as required including receipts duly signed and stamped
indicating the amount paid to the driver every month.
● Driver’s driving license copy should be attached with the receipt.
9) Health & Fitness Reimbursement:

● Razorpay leadership encourages employees to achieve and maintain a healthy
lifestyle through physical fitness. Health & Fitness Expenses Reimbursement is
one of the steps towards a healthy lifestyle.
● Employees will be reimbursed as per eligibility per month for eligible fee. Eligible
fee include the enrolment (if applicable), monthly, quarterly, half-yearly & annual
fee for membership at the fitness centre under Corporate Programme.
● Employee will be reimbursed on a monthly basis, regardless of the type of
membership i.e., quarterly, half-yearly or annual, based on submission of bills.

Payroll Document
10) National Pension Scheme:

● Razorpay has partnered with ICICI Bank to implement the National Pension
Scheme for monthly contributions up-to 10% of basic salary under 80CCD2
(Employer Contribution).
● The Payroll team would coordinate with you for NPS registration/documentation
once you opt-in for the NPS component on PayXpress portal.
● To contribute towards NPS, employees must have an NPS account. Incase
employee doesn't have an existing NPS account then Razorpay Payroll team can
assist in opening a NPS account.
● Once the PRAN is provided to the payroll team, the NPS contribution is made on
the 20th of every month from the subsequent month.
● Please refer to the NPS Benefit document to know more about the NPS benefits.
Important FBC Guidelines:

● All the above stated FBC upper limits are provided as per Income Tax guidelines of
Government of India.
● Onus of substantiating tax benefit claims at the time of Income Tax-assessments would
be on employees and hence, we encourage all records to be maintained by employees
for their personal and official records.
● Employees must choose and declare the components of their choice on ADP during the
first month of the joining or beginning of the Financial year (April), whichever is earlier.
FBC declaration window will be open between 1st and 15th of the above stated month/s.
● Undeclared FBC amount will be paid as Special Allowance on a monthly basis, which
will be taxed as per income tax slab of the employee.
C. PAYROLL TOOL - ADP:
● ADP is a Payroll tool that provides all salary related details i.e. current salary structure,
Payslips, form16, Income tax declaration, Income tax proof submission, Flexible Benefits
declaration and claims, Payroll Helpdesk and ticket management etc.
● Login credential of ADP portal for the new joinees, who joins between 1st and 20th of
the month, is sent by the 21st of the joining month. Employees who join after the payroll
cut off date, i.e. 20th of the month, the login credential will be shared by 21st of the
subsequent month.
● ‘Forgot Password’ link can be used in case an employee forgets the password of ADP.
The new password will be sent to the official email ID of the employee.
● URL: https://www.ess.adp.in/ESS4/

Payroll Document
ADP Login page
ADPHomepage
D. PAYROLL HELPDESK ON ADP:
We leverage ADP’s Payroll Helpdesk to address employees’ queries. All the payroll related
queries i.e. Flexible Benefits components, income tax, payslips, Payments, deductions, Fom16,
PF, UAN, Gratuity, NPS and all other payroll related queries must be raised on ADP.
Navigation: ADP> Home > Support

Payroll Document
Expected time to address payroll queries is 2 working days. In case the response on the query
is not satisfactory then the employee can escalate it to the payroll team. The escalation matrix is
provided in the annexure A.
E. FLEXIBLE BENEFITS CLAIM PROCESS:
● The FBC Reimbursement window will be enabled every month from 1st till 15th to submit
the reimbursement claims on ADP portal .
● Employees would need to upload the soft copies of supporting docs to get the
reimbursement and the same will be paid along with salary.
● Reimbursement claims will happen against submission of bills and based on monthly
eligibility.
Ex; If the monthly eligibility amount is Rs. 2,000 and if you submit Rs. 3,000 worth bills,
then in the current month 2,000 Rs will be paid as reimbursement and remaining claim
will be paid in the subsequent month subject to the YTD eligibility.
F. INCOME TAX DECLARATIONS:
The Income Tax declaration window is open between 1st and 15th of every month. Based on
employees investment plan, employees can declare the same on the ADP portal. Once the
declaration is made and submitted, the Income tax will be calculated accordingly from the same
month.
Employees can also select the choice of Tax Regime. Tax Regime can only be opted during the
joining month or in the beginning of the financial year.
Employees can estimate their tax deductions with the help of the Tax Calculator,
available on the Tax Submission page.
G. INCOME TAX PROOF SUBMISSION PROCESS:
Based on the Income Tax declaration, the income tax proofs must be submitted on the ADP
portal. The proof submission window will be open between 20th December to 15th January.
Based on the proofs, which are validated further by the payroll team, the Income tax for the
current financial year is recalculated and in case adjusted with the salary payable for the month
of February and March.
Note: Any future payment on the declared investment can be highlighted on the tool and proofs
can be accepted by 20th of February of the financial year.
H. SALARY PROCESSING AND CREDIT:
Usually the salary for the month is credited to the employee's salary account on the last working
date of the month. New Joiners who join on or before 20th of the month would be getting their

Payroll Document
prorated salary in the same month. Folks joining 21st onwards would receive the prorated salary
for the joining month and full salary for the subsequent month with the subsequent month’s
salary.

Payroll Document
ANNEXURE - A
Payroll Query Escalation Matrix
Escalation Level Contact
Level 1 ADP Support
Level 2
Anitha Y / Sanjaykumar Vermaa
anitha.y@razorpay.com / sanjaykumar.vermaa@razorpay.com
Level 3 Kapil Raj Soni

Kapil.soni@razorpay.com

Payroll Document
ANNEXURE - B
Frequently Asked Questions on Payroll (FAQs)
Q. What are the Bank options in which I can open a salary account?
A. Currency we have corporate tie ups with ICICI Bank and HDFC Bank. Hence employees
must have salary accounts with any of these 2 banks. However new accounts are being opened
with ICICI bank only.
Q. How can I change my salary account to another account / bank?

A. Employees must inform the HR Operations team to change the salary account / bank.
Note: Employees must have salary accounts with ICICI or HDFC Bank only.
Q. What is the payroll cutoff date for a new joiner?

A. New Joiners who join on or before 20th of the month would be getting their prorated salary in
the same month. Folks joining 21st onwards would receive the prorated salary for the joining
month and full salary for the subsequent month with the subsequent month’s salary.
Q. What is the salary credit date?

A. Usually the salary for the month is credited to the employee's salary account on the last
working date of the month.
Q. Where can I see my CTC related details?

A. The current CTC breakup is available in ADP.
Navigation: ADP > Home > Flexi > View Employee Details
Q. Where can I see and download my monthly payslips?

A. Monthly Payslips are available in ADP. This can also be downloaded as PDF.
Navigation: ADP > Home > Pay > Pay.
Q. Where and when should I declare my investments to save income tax?

A. Investments must be declared in ADP .The Income Tax declaration window is open between
1st and 15th of every month.
Q. Can I change the tax regime in the middle of the financial year?
A. Change of tax regime can be done in the month of April only. Employee will not be able to
change in the middle of the financial year once a declaration has been submitted into the ADP
Portal.

Payroll Document
Q. When can I declare / change Flexible Benefits Components (FBC)?

A. FBC must be declared in ADP. The FBC declaration window is open during the first month of
the joining or in April, June and December of the Financial year, whichever is earlier. FBC
declaration window will be open between 1st and 15th of the above stated month/s.
Q. When will I get my Form16?

A. Form16 for the previous Financial Year issued in the month of June / July every year. This is
available in ADP.
Navigation: Home > Pay> Form16
Q. How do I claim Flexi Benefits?

A. FBC Reimbursement window will be enabled every month from 1st till 15th to submit the
reimbursement claims on ADP.
Q. Where can I see my PF and UAN details?

A. PF number and UAN are available in monthly Payslips.
Q. I am trying to declare NPS (Employer Share) but portal is asking for a PRAN.
A. Employee must have a PRAN before opting for NPS Employer Share.
Q. Can I use my existing NPS account and link with Razorpay for further contribution?
A. Yes. Please declare the NPS under Flexi (as and when enabled) on ADP and provide the
existing NPS account Number (PRAN).
Q. How can I get a NPS account?

A. Please send an email to payroll@razorpay.com. Payroll team will guide you through the
process.
Q. Where can I declare my Income from the previous employer?

A: Navigation: ADP > Home > Tax Submission
Q. Where can I raise my payroll related queries?

A. All the payroll related queries i.e. Flexible Benefits components, income tax, payslips,
Payments, deductions, Fom16, PF, UAN, Gratuity, NPS and all other payroll related queries
must be raised in ADP.
Expected time to address payroll queries is 2 working days. In case the response on the query
is not satisfactory then the employee can escalate it to the payroll team. The escalation matrix is
provided in the annexure A.

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Payroll Document

Organization Razorpay Software Pvt. Ltd.

Document Name Payroll Guidelines

Created By Reddi Ramu

Document Revision History

Copyright © 2023 Razorpay Software Pvt. Ltd.

2. Flexible Benefits Components

3. Payroll Tool - ADP

4. Payroll Helpdesk On ADP

5. Payroll Query Escalation Matrix

6. Flexible Benefits Claim Process

7. Income Tax Declarations

8. Income Tax Proof Submission Process

9. Salary Processing And Credit

10. Frequently Asked Questions On Payroll (FAQs)

Copyright © 2023 Razorpay Software Pvt. Ltd.

Below are the component wise details.

2. House Rent Allowance (known as HRA):

3. Flexible Benefit Components (FBC):

Copyright © 2023 Razorpay Software Pvt. Ltd.

5. Employer's contribution to PF:

7. Medical and Accident Insurance Premium:

Copyright © 2023 Razorpay Software Pvt. Ltd.

B. FLEXIBLE BENEFITS COMPONENTS:

Component Per month Nature of Payment

Gift Voucher INR 417 Will be processed as an E-gift voucher

Communication It will not be paid as monthly

will be paid based on submission of

Up to 10% of Will be deducted from your salary

Copyright © 2023 Razorpay Software Pvt. Ltd.

It will not be paid as monthly

It will not be paid as monthly

It will not be paid as monthly

It will not be paid as monthly

It will not be paid as monthly

1) Leave Travel Allowance (LTA):

Copyright © 2023 Razorpay Software Pvt. Ltd.

5) Books & Periodicals:

Copyright © 2023 Razorpay Software Pvt. Ltd.

● Reimbursement of expenses towards Books and Periodicals are based on

6) Learning & Development (Education Assistance):

8) Driver Salary Reimbursement:

9) Health & Fitness Reimbursement:

Copyright © 2023 Razorpay Software Pvt. Ltd.

10) National Pension Scheme:

Important FBC Guidelines:

C. PAYROLL TOOL - ADP:

Copyright © 2023 Razorpay Software Pvt. Ltd.

ADP Login page

D. PAYROLL HELPDESK ON ADP:

Copyright © 2023 Razorpay Software Pvt. Ltd.

E. FLEXIBLE BENEFITS CLAIM PROCESS:

F. INCOME TAX DECLARATIONS:

G. INCOME TAX PROOF SUBMISSION PROCESS:

H. SALARY PROCESSING AND CREDIT:

Copyright © 2023 Razorpay Software Pvt. Ltd.

Copyright © 2023 Razorpay Software Pvt. Ltd.

Payroll Query Escalation Matrix

Escalation Level Contact

Level 1 ADP Support

Level 3 Kapil Raj Soni

Copyright © 2023 Razorpay Software Pvt. Ltd.

Frequently Asked Questions on Payroll (FAQs)