Payroll Software Costs, Features and 2026 Rules
Statutory registers, wage slips and employee self-service: what payroll software must produce under the labour codes
Which registers, wage slips, appointment letters and records Indian payroll software should generate in 2026, how long to keep them, and what good employee self-service includes.
Under the labour codes, payroll software is also your record-keeping system. The central rules under the Code on Wages prescribe an employee register, a register of wages, overtime, advances, fines and deductions, a wage slip and an attendance register cum muster roll (Forms I, IV, V and IX under rules 51 and 52 of the Code on Wages (Central) Rules, 2026), and states prescribe their own versions for establishments under them. The OSH Code requires appointment letters. Good software keeps these registers electronically, produces them on demand for an inspection, and gives employees self-service access to payslips, tax declarations, Form 130 and leave. This guide lists what to expect and how to test it.
It belongs to the payroll and HR software comparison overview.
Why registers matter more after the codes
Before the codes, an employer might keep separate registers under the Minimum Wages Act, the Payment of Wages Act, the Payment of Bonus Act and others, each in its own format. The codes consolidate these obligations, and the central rules move towards common formats and electronic maintenance. In practice:
- an inspector-cum-facilitator (the new title for inspectors) may ask for registers covering wages, attendance, overtime, deductions and bonus;
- states have their own forms and may require registers to be displayed or available at the workplace;
- missing or inconsistent records weaken your position in any wage claim or dispute.
Because the formats differ by appropriate government, ask the vendor which state formats are built in, not just the central ones.
Records payroll software should generate
| Record | Contents (broad) | Source data |
|---|---|---|
| Employee register | Identity, joining date, designation, wage rate, category, exit date | Employee master |
| Register of wages, overtime, advances, fines and deductions | Wages earned, overtime hours and pay, deductions with reasons, net pay | Payroll run, attendance |
| Wage slip | Earnings, deductions, net pay, period, employer details | Payroll run |
| Attendance register cum muster roll | Daily presence, hours, leave, holidays | Attendance system |
| Bonus register | Eligibility, calculation base, bonus paid | Annual bonus run |
| Leave records | Accrual, availed, balance, encashment | Leave module |
| Appointment letter | Terms of employment, wages, category | HR module or templates |
| Gratuity and nomination records | Nominations, service history | HR records |
| PF and ESI records | ECR, contribution data, challans | Statutory modules |
| Accident and welfare records | Where applicable under the OSH Code | Safety or HR records |
Forms and register names above follow the central rules; your state's rules may number them differently. Confirm on your state labour department's website and the Ministry of Labour and Employment.
Wage slips
A wage slip is now a prescribed document, not just a courtesy. It should show at least the wage period, wages and overtime earned, each deduction and its basis, and net pay, in the format required. Good software:
- issues slips electronically to every employee, including daily-rated and contract staff if you pay them directly;
- keeps a version history if a slip is reissued after a correction;
- can print slips in regional languages where required;
- shows the code-wages add-back line if the 50% rule applies.
Retention and audit trail
Keep registers and supporting records for the period your state rules and other laws require; income-tax, PF and company law have their own periods, and companies must keep books with an audit trail. In software terms, ask:
- Is every change to salary, attendance or deductions logged with user and time?
- Can you export registers for past years after the subscription ends?
- How long does the vendor keep data, and can you get it back in a usable format? See contract and exit terms.
Employee self-service (ESS)
ESS reduces HR workload and errors, and gives employees access to their own data, which also matters under the DPDP Act. A useful ESS covers:
| Feature | Why it matters |
|---|---|
| Payslips and wage slips, past and present | Fewer requests to HR; evidence for loans and visas |
| Tax regime choice and Form 124 declarations | Captures the new or old regime choice and claims with proofs |
| Form 130 download | Annual certificate for return filing |
| Leave application and balance | Approvals tracked; balances visible |
| Attendance regularisation | Missed punches corrected before payroll cut-off |
| Reimbursement claims | Bills uploaded and approved |
| Profile updates | Bank account, address, nominee changes with approval |
| Mobile app with local language | Reaches shop-floor and field staff |
Check that access is limited to the employee's own data, that bank account changes need approval (a common fraud route), and that ex-employees can still download payslips and certificates for a period.
Pricing angle
Registers and wage slips should be part of core payroll. ESS is usually included, but advanced features such as attendance regularisation, mobile geo-attendance or document management may be in higher tiers. Price the tier you need in the cost estimator.
Demo test
- Generate the register of wages for a test month in your state's format.
- Produce a wage slip for a daily-rated worker with overtime and a deduction.
- Change a salary and show the audit log entry.
- Log in as an employee on a phone: download a payslip, change the tax regime, upload a rent receipt, apply for leave.
- Export one year of registers as files you can open without the software.
Add these to the selection checklist.
Frequently asked questions
Can registers be kept only electronically?
The codes and rules move towards electronic records, but states vary. Check your state's rules on electronic maintenance and display.
Do contract workers appear in our registers?
Contractors keep their own registers, but as principal employer you have obligations to check wage payment and records. Ask whether your software supports a contract labour module.
Must every employee get an appointment letter?
The OSH Code requires appointment letters to employees. Keep a copy in the HR system.
Is ESS mandatory?
No, but it reduces errors and helps employees access their data.
Sources
- Ministry of Labour and Employment — codes, central rules, formats
- Shram Suvidha Portal — central labour compliance filings
- EPFO — PF records and ECR
- ESIC — ESI records
