Taxes & PESSI

Manage income tax deductions and social security (PESSI) contributions — configured once in settings and applied automatically every payroll cycle.

Income Tax

HRMGridSystem calculates tax deductions based on tax slabs you configure in System Settings → Taxes. Slabs define how much tax applies at different income levels.

Setting Up Tax Slabs

1. Go to System Settings → Taxes.
2. Define income ranges and the tax rate for each slab.
3. Save — the system applies these rates when generating payslips.

Viewing Tax Records

• My Taxes — employees see their personal tax deductions per month.
• All Deducted Taxes — HR and finance see company-wide tax records.

PESSI (Social Security)

PESSI is the social security contribution scheme. Configure contribution rates under System Settings → PESSI.

Viewing PESSI Records

• My PESSI Deduction — employees see their personal contributions.
• All PESSI Deduction — HR and finance see all employee PESSI records.

How Deductions Are Applied

Both tax and PESSI are calculated and deducted automatically when payslips are generated:

1. The system looks at the employee's gross salary for the month.
2. Tax is calculated based on the configured slabs.
3. PESSI is calculated based on the configured contribution rate.
4. Both amounts appear as line items on the payslip and in the employee's records.

Reports

• Reports → Tax Deduction Report — export tax data for filing and audit.
• Reports → PESSI Report — export social security contribution records.