ERPNext HR and Payroll With Frappe HR: A Guide
How HR and payroll work in ERPNext with Frappe HR: employees, attendance, leave, salary structures, payroll entry, statutory deductions and employee self-service.
HR and payroll in the ERPNext world run on Frappe HR, an open-source app that installs on the same Frappe site as ERPNext. Here is how it fits together.
Employees
The employee record holds personal details, department, designation, reporting manager, joining date and bank details. Link each employee to a user account for self-service.
Attendance
Attendance can be recorded manually, from employee check-ins through a biometric device or mobile app, or imported. Shift types define working hours, grace periods and auto-attendance rules.
Leave
Leave types, leave policies and holiday lists define entitlements. Employees apply for leave, managers approve, and balances update automatically. Carry-forward and encashment rules are supported.
Salary structures
A salary structure is a set of earnings and deductions with formulas, such as basic, allowances, provident fund and tax. Structures are assigned to employees with effective dates and base amounts.
Running payroll
- Create a payroll entry for the period and company.
- Fetch employees and generate salary slips.
- Review and submit slips.
- Post the accounting entry and create bank payments.
Salary slips can be emailed to employees as password-protected PDFs.
Statutory compliance
Country rules vary widely. Regional apps and community contributions cover some countries, including India, but always verify against current rules with your payroll adviser. See the ERPNext India GST guide for the India context.
Expenses and advances
Employees submit expense claims and advances, approved by managers and posted to accounts.
Recruitment and appraisals
Job openings, applicants, interviews, offers, onboarding, appraisals and goals are all included.
Self-service
Employees use the portal or mobile app to check in, apply for leave, submit expenses and download slips.
See our ERPNext HR and payroll service or the HR and payroll solution.
Frequently asked questions
Is HR included in ERPNext?
HR and payroll were moved out of core ERPNext into the separate Frappe HR app in recent versions. It is free and open source and installs alongside ERPNext.
Does ERPNext payroll handle tax and statutory deductions?
Salary components and formulas can model most deductions, and regional apps add country rules. Check support for your country carefully.
Written by
ERP Builders Team · ERP consultants and engineers
Articles written and reviewed by the ERP Builders delivery team — functional consultants, solution architects and developers who implement, integrate and support ERP systems.
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