Payroll Settings in Frappe HR: Global Settings for Payroll
Payroll Settings let you configure the global settings for the Payroll module the company-wide rules for how working days are counted, how salary slips look and behave, how they’re emailed, and how payroll accounting is posted. Setting these correctly is what makes payroll calculate and post the way your organisation expects.
To access them, go to Home > Payroll > Settings > Payroll Settings.
1. Working Days & Hours
Calculate Payroll Working Days Based On: working days on the salary slip can be calculated from Leave Application or Attendance records.
Consider Unmarked Attendance As: shown when payroll is based on Attendance. It sets the default status for unmarked attendance. For example, set it to Present and you only need to mark the absent days everything else is treated as Present by default.
Include holidays in Total no. of Working Days: if checked, holidays count towards total working days, which lowers the per-day salary. For example, with 10 holidays in a 30-day month, Total Working Days is 30 if enabled, 20 if disabled attendance is then checked across those 30 or 20 days to find the payment days.
Consider Marked Attendance on Holidays: by default holidays are treated as paid days. If this is enabled and you mark attendance on a holiday, that marked attendance overrides the holiday. For example, marking an employee Absent on a holiday counts it as an absent day rather than a paid one.
Max working hours against Timesheet: for timesheet-based salary slips, the maximum hours allowed against a single timesheet. Set it to zero to disable this validation.
Fraction of Daily Salary for Half Day: the fraction used to calculate half-day salary. For example, 0.75 pays three-fourths of a day’s salary for a half-day attendance.
2. Salary Slip
Disable Rounded Total: if enabled, hides and disables the Rounded Total field on salary slips.
Show Leave Balances in Salary Slip: when enabled, the employee’s leave balances are displayed on their salary slip.
3. Email
Email Salary Slip to Employee: on submission of a salary slip, an email with the slip is sent to the employee’s preferred email address.
Encrypt Salary Slips in Emails: the salary slip PDF sent to the employee is encrypted using the Password Policy below.
Password Policy: becomes visible and mandatory when encryption is enabled. For example, a policy of SAL-{first_name}-{date_of_birth.year} generates a password like SAL-Jane-1972.
4. Other Settings
Define Opening Balance for Earning and Deduction: if enabled, you can set opening entries for Taxable Earnings till Date and Tax Deducted till Date in the Salary Structure Assignment, where there are no existing salary slips for the employee useful when migrating mid-year.
Process Payroll Accounting Entry based on Employee: by default, a single consolidated Journal Entry is created against the Payroll Entry for all employees. Enable this to process employee-wise accounting entries instead, for a clearer breakup of payroll amounts per employee.
NOTE
The Working Days & Hours options work together to decide each employee’s payment days, so a change here affects every salary slip. Settle on how you want working days, unmarked attendance, and holidays treated before running payroll, and keep them consistent month to month.
TIP
If your finance team wants payroll costs analysed per employee, turn on Process Payroll Accounting Entry based on Employee. The per-employee breakup makes reconciliation and cost reporting far easier than unpicking a single consolidated journal later.
Related Topics
- Salary Slip
- Salary Structure Assignment
- Payroll Entry
- Attendance
- HR Settings
SUMMARY
Payroll Settings configure the Payroll module globally, in four groups. Working Days & Hours covers how working days are calculated, how unmarked attendance and holidays are treated, timesheet hour limits, and the half-day salary fraction. Salary Slip covers disabling the rounded total and showing leave balances. Email covers emailing the salary slip and encrypting it with a password policy. Other Settings cover opening balances for taxable earnings and tax deducted, and processing payroll accounting entries per employee rather than as one consolidated journal. Set these consistently before running payroll.
