Qualimark Machines Pvt Ltd

STANDARD OPERATING PROCEDURE

PayRoll & Compliances

PayRoll

INPUT PROCESS OUTPUT

Punching of Updating of the Payment to

the Card Outdoor Card Employee
while on outdoor by the Bank
duty before the 10th of
the following
month
Updating of the
Leave Card for
leave availed

Capturing of data
from the system on
the cutoff date-30th
of the month

Processing of
salary from the
ERP System

Mandatory
Deductions/ Loan
deductions or
advance
deductions to be
carried out

Statutory
PF/ESIC Payment
Challan Before 15th of
Preparation Every Month
1.1. Pay & Payroll

Employee classifications

1.1.1. The employees are classified into permanent, FTC, Trainees & Temporary
Employees.
1.1.2. Pay Period, per day and Hours of work
1.1.3. Pay period is for one month i.e. from 1st to 30 or 31
1.1.4. Every month payroll folder should be created with month name and year ie January 2023
1.1.5. Every folder must have 4 files
1.1.5.1.FTC Salary Sheet
1.1.5.2.Staff Salary Sheet
1.1.5.3.PF Challan
1.1.5.4.ESIC Challan
1.1.5.5.Form 5-A(PT)
1.1.6. Pay day will be before 10th of every month
1.1.7. Every employee is paid for eight hours of work in a day starting from 09 a.m. to 6.00 p.m.
The lunchtime of ½ hour starting from 1.00 p.m. to 1.30
p.m. is a paid hour.

1.2. Time Sheets

5.2.1 We have a card punching system installed by HR. Every employee is required to punch
their access cards while coming to office in the morning and at the time of leaving
office. This data is captured from the Card Punching system, and then transferred to
our ERP System through software and the final data is generated by from the ERP
program for attendance and pay roll.

1.3. Pay roll deductions

1.3.1. The mandatory deductions are carried out as per the Law, which the
company is required to deduct.

1.4. Advance payment of salary

1.4.1. Advance payment of salaries is made in case of emergency or as approved by the

respective employee’s department head and accounts.
1.5. Mode of payment

Salary will be paid only in Bank Account.

1.5.1. Grade Structure

Given below is the existing Grade Structure of the Company. It is proposed to change the
Existing Structure in due course of time.

1.6. Salary Structure

1.6.1. Before appointment of any employee or worker salary structure must be dully
signed by Commercial director as well as employee
1.6.2. Salary structure will be modified only in case of increment or promotion.

1.6.3. Salary structure for office staff must be as follow:

 Per Month Per Annum
Details
(Amount Rs.) (Amount Rs.)

Basic
HRA
Conveyance Allowance
Washing Allowance
PL (Deduction)
Gross
PF (GROSS-HRA)
Employer's Contribution to PF (13%)
Employer's Contribution to ESIC (3.25%)
Bonus
Gratuity
Insurance
Total CTC

Professional
Monthly Income of the TaxPayer
Tax
For salary up to Rs.11,999 Nil
For salary of Rs.12,000 and above Rs.200

Takehome Calculation
Employer's Contribution to PF (13%)
Employee's Contribution to PF (12%)
Employer's Contribution to ESIC (3.25%)
Employee's Contribution to ESIC (0.75%)
Professional Tax
Bonus
Takehome
1.6.4. For Management
The salary structure for Management Cadre is as under:
1.6.4.1.Basic Salary
1.6.4.2.Allowances
 House Rent Allowance
 Conveyance Allowance
 Washing Allowance

 Annual Benefits
 Bonus
 Medical
 Leave Allowance
 Provident Fund
 Employee State Insurance (ESIC), if applicable

o All Annual Benefits are company’s contribution.

o All Annual Benefits are calculated on Basic Salary.
o Bonus is as declared by the Company from time to time
o Provident Fund is 12% of the Basic + Allowances Salary.
o Employees State Insurance, if applicable is 3.25% of Gross Salary
o Only employees who have completed their probation period are entitled for leave Travel
Allowance. However, Leave Travel Allowance will be paid only after the employee
completes one year of service.

1.6.5. Deductions
1.6.5.1.Professional Tax (As applicable)
1.6.5.2.Provident fund (12% of Basic Salary)
1.6.5.3.ESIC (0.75% of Gross Salary), if applicable

1.6.6. For Staff/FTC

The Salary structure for Staff Cadre is as under:
1.6.6.1.Basic Salary
For Staff Cadre, Basic Salary = Basic Salary + DA
1.6.6.2.Allowances
 House Rent Allowance
 Children’s Education
 Conveyance Allowance
 Washing Daily Allowance

 Annual Benefits
 Medical (if applicable)
 Leave Travel Allowance (if applicable)
 Provident Fund
 Employee State Insurance (ESIC), if applicable

o All Annual Benefits are company’s contribution

o All Annual Benefits are calculated on Basic Salary + both Daily Allowances
o Provident Fund is 12% of the Basic Salary + both Daily Allowances
o Employees State Insurance, if applicable is 3.25 % of Gross Salary
o Leave Travel Allowance is applicable only for employees who are going for service call.
1.7. Preparation of PF ESIC Challans
1.7.1. Exit Mark of left employee from PF
1.7.2. While creating ESIC challan put ESIC exit code in esic Challan
1.7.3. PF Challan Preparation
1.7.4. Esic Challan Preparation
1.7.5. Upload both challan before 10th of every month
1.7.6. Preparation of PT Challans Form 5-A
1.7.7. Before 15th of every month payment of statutory challans
1.8. Statutory Register update
1.8.1. I-Card Register Update (15th of Every Month)
1.8.2. Leave Register Update (15th of Every Month)
1.8.3. Accidental Register Update (15th of Every Month)