Enabling the Payroll Module
To start using payroll features:
Apps → Install "Payroll"
This activates salary structure configuration, payslip generation, and accounting integration with your HR system.
Creating Salary Structures and Components
Go to:
Payroll → Configuration → Salary Structures
Create a structure for different employee types (e.g., Full-Time, Part-Time, Interns):
- 📌 Define name, type, and associated rules
- 📆 Set frequency: monthly, weekly, or custom
- 📂 Group rules under categories like Basic, Gross, Net
Salary structures make payroll scalable and consistent across roles.
Defining Salary Rules (Basic, Allowance, Deductions)
Salary rules break down how earnings and deductions are calculated:
- 💵 Basic Pay
- 🎁 HRA, Travel, Meal or Performance Allowance
- 📉 PF, TDS, ESIC, Loan Deductions
You can use fixed amounts, percentage-based formulas, Python code, or condition-based logic for advanced payroll structures.
Assigning Structures to Employee Contracts
Each employee contract must be linked to a salary structure:
Employees → Contracts → Add Salary Structure
This ensures payslips are calculated correctly based on the employee's role and benefits.
Tip: You can create multiple contracts per employee for renewals, promotions, or variable structures.
Generating Payslips Individually or in Batches
To generate payslips:
Payroll → Payslips → Create
Or run a batch with:
Payroll → Payslip Batches → Create
Select employee(s), period, and structure. Odoo will calculate:
- 📊 Earnings and deductions
- 💰 Gross, Net, and Taxable salary
- 📄 Printable payslip with breakdown
Once confirmed, payslips can be emailed, downloaded, or stored in the employee record.
Handling Taxes, Benefits, and Compliance
Payroll rules can be configured to include statutory elements:
- 🇮🇳 Indian Payroll: PF, ESI, Professional Tax
- 🇺🇸 U.S.: Federal/state tax codes, 401(k)
- 🌍 Any region: Custom deduction formulas, tax slabs
Ensure payroll journals are mapped to your chart of accounts for accurate accounting integration.
Payroll Reports and Payslip History
View and export reports by:
- 👤 Employee
- 📅 Month or year
- 📊 Rule category (Earnings, Deductions, Net)
All records are auditable, filterable, and can be downloaded in Excel or PDF formats for review or compliance.
Conclusion
Odoo 17 gives you full control over payroll — from contract-based salary structures to payslip automation and compliance tracking. It's built to handle both simple and complex payroll scenarios at scale.
Need help customizing salary rules or automating your payroll process? Talk to our Odoo payroll experts today.
