ERPNext HR & Payroll Module 

The ERPNext HR and Payroll Module is a full, all-in-one system that helps businesses manage their employees, attendance, salary processing, and performance in a smooth, automated, and efficient way. ERPNext speeds up, makes more clear, and organises HR tasks with powerful tools like Employee Master, Attendance Management, Payroll Processing, Leave Management, Shift Scheduling, and Performance Appraisal. 

This module is great for businesses of all sizes that want to cut down on manual HR work and move to a more modern, digital, and connected HR management system. 

 1. Getting to Know theERPNextHR and Payroll Module 

The ERPNext HR & Payroll Module keeps all employee information in one place and automates HR tasks. The system can handle every step of an employee’s career, from hiring to retirement. HR teams can keep track of employee documents, attendance, leave, salaries, pay slips, and performance. 

The module makes work easier by being easy to use and having strong automation features. It boosts productivity, lowers mistakes, and ensures compliance with company policies and labour laws. 

 2. Employee Master: A Central Database of All Employees

With the Employee Master feature, businesses can keep all of their employees’ information in one place, such as: 

• Personal information 

• Contact details 

• Education and skills 

• Work history 

• Job position and department 

• Salary details 

• Bank information 

• ID cards and documents 

This centralised database makes sure HR teams always have accurate records. 

 3.Managing Attendance

ERPNext has a powerful Attendance Management system that supports: 

• Manual attendance 

• Biometric integration 

• Mobile check-in 

• WFH attendance 

• Shift-based attendance 

Real-time attendance tracking helps identify absentees, late arrivals, and early exits. All data flows directly into Payroll Processing, reducing manual work. 

 4.Leave Management System

Employees can request leave through the Employee Self-Service Portal. HR can manage: 

• Leave allocations 

• Leave applications 

• Leave approvals 

• Leave balance reports 

• Leave policies 

• Paid/unpaid leave types 

Automated notifications make the whole leave approval workflow seamless. 

 5. Managing and Scheduling Shifts

The Shift Scheduling feature benefits companies operating multiple shifts or 24/7. HR can manage: 

• Day shifts 

• Night shifts 

• Rotational shifts 

• Weekly schedules 

Automatic shift assignment ensures accurate attendance and payroll calculations. 

 6. Payroll Processing (Quick and Accurate Pay Cheques)

ERPNext makes Payroll Processing fast and error-free. HR can set up: 

• Salary structures 

• Earnings (Basic, Bonuses) 

• Deductions (Tax, Loans, EOBI, PF) 

• Overtime calculations 

• Tax calculations 

• Multi-currency payroll 

• Department-wise payroll 

Once attendance and leave data are final, ERPNext auto-generates Salary Slips. All payroll entries update the Accounting Module in real-time. 

 7. Salary Structure and Components

Companies can create custom Salary Structures, including: 

• Basic Salary 

• HRA 

• Medical Allowance 

• Conveyance 

• Sales Incentives 

• Overtime 

• Tax Deductions 

Different salary structures can be created for departments, grades, or roles. 

 8. Employee Self-Service Portal

The Employee Self-Service Portal improves transparency by allowing employees to: 

• Apply for leave 

• Check attendance 

• Download payslips 

• Update personal info 

• View announcements 

• Track requests 

This reduces HR workload significantly. 

 

9. Managing Expense Claims

The Expense Claims feature in ERPNext makes reimbursements easier. Employees submit expenses with receipts, and managers approve them. 

This ensures: 

• Faster approvals 

• Clear expense tracking 

• Accurate reimbursements 

• Seamless accounting sync 

 10. Hiring and Recruitment

ERPNext supports the full Recruitment process: 

• Job openings 

• Applicant tracking 

• Resume filtering 

• Interview scheduling 

• Offer letters 

This helps HR teams hire faster with organized candidate records. 

 11.Performance Management and Appraisal

The Performance Appraisal system tracks goals, KPIs, and achievements. HR can: 

• Set goals 

• Assign KPIs 

• Conduct reviews 

• Add ratings and feedback 

• Generate appraisal reports 

This improves productivity and helps identify top performers. 

 12. Training and Skill Development

The Training Management system enables companies to: 

• Plan training programs 

• Assign trainers 

• Track attendance 

• Evaluate training results 

This helps improve employee skills and capability. 

 13. HR Reports and Analytics

ERPNext provides detailed HR Analytics, including: 

• Attendance reports 

• Leave analysis 

• Payroll summaries 

• Headcount reports 

• Department-wise salary cost 

• Age & experience reports 

Real-time insights help managers make better decisions. 

 14. Integration With Other Modules

The HR & Payroll Module integrates with: 

• Accounts Module (salary posting) 

• Projects Module (timesheets) 

• CRM Module (sales team performance) 

• Manufacturing Module (shift planning) 

This creates a unified workflow across the organization. 

 

⭐ In the End 

The ERPNext HR & Payroll Module is a complete solution for managing employees, attendance, leave, payroll, performance, and workforce planning. With features like Employee Master, Attendance Management, Leave Management, Shift Scheduling, Payroll Processing, Salary Structures, Expense Claims, and HR Analytics, businesses can automate HR tasks and improve efficiency. 

ERPNext ensures accuracy, transparency, and compliance—helping HR teams work better and employees stay satisfied.