Odoo payroll in India
Every India payroll item that has to land in a salary rule, a bank file, or a statutory report, printed in full with its verification state.
5 items Printed as checked, not condensed.
What India payroll has to calculate, withhold and file
Each item below becomes a salary rule, a bank file, or a report we test before the first live run.
- 1
Provident fund is 12% from the employee and 12% from the employer. Of the employer share, an amount equal to 8.33% of salary goes to the pension fund, on salary capped at INR 15,000 a month. It applies to establishments with 20 or more employees.
- 2
Employees State Insurance is a separate statutory contribution requiring an employer code and IP numbers. Professional tax is a state-level deduction with a registration number per state, and the Labour Welfare Fund needs an establishment number. Odoo's Indian payroll localization handles all four.
- 3
The four Labour Codes came into force on 21 November 2025 and the final Central Rules were notified on 8 May 2026. The codes are the Code on Wages 2019, the Code on Social Security 2020, the Occupational Safety, Health and Working Conditions Code 2020, and the Industrial Relations Code 2020. States are still notifying their own rules, so the operative position differs by state.
- 4
Two Labour Code changes land directly in payroll: fixed-term employees become eligible for gratuity after one year of service, and gig and platform workers get social security coverage through a government registration portal, with a 90-day engagement test per aggregator.
- 5
The Central Rules fix minimum wages on a daily basis, with a stated conversion to hourly and to a 26-day month, and overtime at twice the ordinary rate. Any payroll build that assumes a 30-day divisor should be checked against this.
Checked Localization notes on this page checked on 22 August 2026.
Rates, formats, thresholds and submission windows change. We configure against the rules in force at build time and confirm every figure with your accountant or tax advisor before sign-off. If a rule moves after go-live, it is a support ticket, not a rebuild. Read more on our Odoo localization service.
How we build payroll for India
The delivery method behind the list above. The same four steps on a 10-user rollout and on a multi-company programme, with the depth scaled to the scope.
- 1 Rules, not hard-coded numbers. Contributions and deductions are built as Odoo salary rules with dated parameters, so a rate change is a configuration edit rather than a code release.
- 2 Employee data gets audited first. Bank details, national identifiers, start dates and contract types. Bad master data is why most payroll go-lives slip, and it is cheap to fix early.
- 3 One parallel run, minimum. We run at least one cycle alongside your current system and reconcile it line by line with your HR and finance leads before switching over.
- 4 Bank files tested with the bank. Payment files and statutory reports are generated from Odoo and put through your bank as a test batch before the first live run.
What we need from you to quote it
Bring these to the first call and you get a scoped, priced payroll plan for India instead of a range.
- โ A full payslip for each contract type you run, from your current system.
- โ Your employee master file, including bank details and identifiers.
- โ The reports and files you submit today, and who you submit them to.
Services behind this work
The rest of the India localization detail
Each topic has its own page with the full item list, the same way this one does.
Payroll in other markets we cover
Running the same rollout across borders? These pages carry the same depth for each market, so you can compare before scoping a multi-country phase.
Scope payroll for your India rollout.
Send us the list above with your answers against it. We come back with what is configuration, what is a connector, and what is a build, priced before the project starts.