Some features are currently being rebuilt for Payroll Engine 2.0. This guide covers what has changed, what you can do in the meantime, and when each feature will be available.

Bonus Management

What's changed

Bonus Management, including clawback tracking, is being rebuilt for Payroll Engine 2.0 and will be available soon.

What you can do instead

How you process bonuses depends on whether the bonus has a clawback clause.

Bonuses without a clawback clause (festival bonuses, performance bonuses with no recovery condition):

1. Go to Payroll > Run Payroll for the relevant month

2. Click Edit Salary for the employee

3. In the Additions section, select the appropriate bonus component from the dropdown

4. Enter the bonus amount and save

5. Finalise and execute payroll as usual

For example: you are paying a Diwali bonus of Rs. 5,000 to an employee in October. Go to Run Payroll for October, click Edit Salary, select Festival Bonus from the Additions dropdown, enter Rs. 5,000 and save. The amount will reflect in their October payslip.

Bonuses with a clawback clause (joining bonuses, retention bonuses):

Follow the same steps above to process the payment. For tracking and recovery, follow the steps below.

Tracking clawback offline:

• Maintain a spreadsheet with the following details for each employee who receives a clawback bonus: Employee Name, Employee ID, Bonus Amount, Bonus Payment Date, Clawback Period End Date

• Check this list whenever an employee exits to see if clawback applies

Recovering the clawback amount on exit:

1. Go to People > Employee profile

2. In the Dismiss Employee flow, add a Gross Pay Deduction component

3. Enter the clawback amount and save

4. Finalise F&F

For example: an employee receives a joining bonus of Rs. 50,000 in January with a 12-month clawback clause. Record this in your spreadsheet with a clawback end date of January next year. The employee resigns in July, 6 months before the clawback period ends. When processing their exit, go to the Dismiss Employee flow and add a Gross Pay Deduction of Rs. 50,000 to recover the full amount.

What you need to do before migrating

Download all bonus reports from your current system before migrating. This is your source of truth for identifying which bonuses are subject to clawback. Once Bonus Management is live, clawback tracking will be automated and the offline process will no longer be needed.

Available on Payroll Engine 2.0 by: July 2026

Advance Salary - Employee Request

What's changed

The employee self-service flow for requesting salary advances is being rebuilt for Payroll Engine 2.0 and will be available soon. The admin-side flow for creating and disbursing advances remains fully functional in the meantime.

What you can do instead

Collecting requests from employees (offline):

1. Set up an offline channel to collect advance requests. This can be a Google Form, email to your HR/Payroll team, or your internal ticketing system

2. Each request should capture: Employee Name, Employee ID, Advance Amount Requested, Number of Instalments, Reason for Request
   
   
   

Once you review and approve the request, create the advance in XPayroll:

1. Go to Payroll > Employee Loans and Advances

2. Click Add Loan / Add Advance Salary for the relevant employee

3. Enter the approved amount, number of instalments, and deduction start month

4. Save. XPayroll will automatically deduct EMIs from the employee's salary in subsequent payroll runs

Available on Payroll Engine 2.0 by: May 2026

Zaggle Integration

What's changed

The native integration between XPayroll and Zaggle is being rebuilt for Payroll Engine 2.0 and will be available soon. Until then, manage Zaggle wallet loading and XPayroll flexi benefit tracking as two separate actions.

Note: Your HR team will need to coordinate between both platforms to keep wallet loads and flexi declarations in sync. Brief your team on this before migrating.

What you can do instead

Loading Zaggle wallets:

1. Log in to your Zaggle dashboard directly to manage employee wallet loading

2. Fund wallet loads directly from your organisation's current account to Zaggle. This does not go through XPayroll

Setting up flexi benefit components in XPayroll:

1. Set up Zaggle components (Meal, Fuel, Attire, Telecom, Gift, Books and Periodicals) manually as Flexi components in the XPayroll Flexi Benefits Module

2. Assign these components to employees and ask employees to declare their amounts in XPayroll as usual

3. Trigger wallet loads separately from the Zaggle dashboard

Make sure the amounts declared in XPayroll match the wallet loads on Zaggle. Reconcile any discrepancies manually.

Available on Payroll Engine 2.0 by: September 2026

Resettlement (previously Hold Salary Pay Compliance)

What's changed

Hold Salary Pay Compliance (HSPC) is not available in Payroll Engine 2.0 and will not be reintroduced. A new Resettlement feature is being built to replace it and will be available soon.

This change is aligned with the New Labour Codes requirement that full and final settlement must be completed within 2 working days of an employee's last working day.

Use the workaround below if you need to process an employee's final settlement in a month after their actual last working date.

What you can do instead

This workaround temporarily moves the employee's last working date into the settlement month, so the system can process their final payment then. The 1 LOP day cancels out the extra day of pay. Disabling PF, PT, and ESIC prevents double deductions, as these were already processed in the exit month. Reset the LWD once you're done so that the employee's record reflects their actual last working date.

1. Update the employee's Last Working Date (LWD) to the 1st of the month in which you are processing the settlement (e.g., if settling in May, set LWD to 1st May)

2. Add 1 day of LOP to cancel out the pay for that extra day

3. Add any pending arrears, incentives, or recovery amounts in the Edit Salary screen for that month

4. In the employee's Compliance settings, disable PF, PT, and ESIC for this settlement month. These were already processed in the exit month

5. Keep TDS enabled so any outstanding TDS liability is correctly deducted and filed

6. Run payroll for the month and execute the F&F settlement

7. Once the settlement is complete, reset the LWD to the employee's actual last working date
   
   

For example: an employee's last working day is 28th April, but their F&F inputs are not ready until May. Set their LWD to 1st May, add 1 LOP day to cancel out that day's pay, disable PF, PT, and ESIC, and process the settlement in May's payroll. Once done, reset the LWD back to 28th April.

Note: Coordinate with your finance team before running this. Make sure PF, ESI, and PT are disabled before executing payroll to avoid incorrect deductions.

Available on Payroll Engine 2.0 by: September 2026

Approval Workflow

What's changed

The in-app approval workflow for payroll finalisation, payroll edits, and salary revisions is being rebuilt for Payroll Engine 2.0 and will be available soon. Until then, manage approvals over email.

What you can do instead

1. Before finalising payroll, editing payroll, or making salary revisions, send a summary report to your relevant approvers (Finance Manager, CFO, or CXO as per your organisation's policy)

2. Wait for explicit email approval before proceeding in XPayroll

3. Keep a record of all email approvals in a shared folder for audit purposes

Available on Payroll Engine 2.0 by: June 2026

New Joinee Arrears

What's changed

Automated arrears calculation for employees who join after the payroll cut-off date is being rebuilt for Payroll Engine 2.0 and will be available soon. Until then, add arrears manually in the following month's payroll.

What you can do instead

1. Identify employees who joined after the payroll cut-off date for the month

2. Calculate the arrear amount:

Daily Rate = Monthly CTC divided by Total Working Days in the joining month

Arrear = Daily Rate multiplied by Number of days worked after the cut-off date

3. Do not execute payroll for the joining month for these employees

4. In the following month, go to Payroll > Run Payroll

5. Click Edit Salary for the new joinee

6. In the Arrears section, add arrears for all salary components based on the calculated amount

7. Save and proceed with payroll finalisation. The arrear will appear in the employee's payslip for that month
   
   

For example: if your payroll cut-off is the 5th of April and an employee joins on the 8th of April, do not process their April salary in that month. In May's payroll, calculate the arrear for the days they worked in April (8th to 30th) and add it manually.

Available on Payroll Engine 2.0 by: July 2026

LOP Reversal Arrears

What's changed

Automated LOP Reversal (RLOP) arrears calculation is being rebuilt for Payroll Engine 2.0 and will be available soon. Until then, calculate and add reversal arrears manually via Run Payroll.

What you can do instead

1. Identify employees for whom LOP is being reversed for a prior month

2. Calculate the arrear amount:

Daily Rate = Monthly Gross divided by Total Working Days in the original payroll month

Arrear = Daily Rate multiplied by Number of LOP days being reversed

3. Go to Payroll > Run Payroll for the current month

4. Click Edit Salary for the relevant employee

5. In the Arrears section, add arrears for all salary components based on the calculated amount

6. Save and proceed with payroll finalisation
   
   

For example: an employee was marked for 2 days of LOP in March by mistake. Their monthly gross is Rs. 30,000 and March had 26 working days. The daily rate is Rs. 30,000 divided by 26 = Rs. 1,154. The arrear to be added in April's payroll is Rs. 1,154 multiplied by 2 = Rs. 2,308.

Available on Payroll Engine 2.0 by: October 2026

Imprest Recovery

What's changed

Automated Imprest Recovery is being rebuilt for Payroll Engine 2.0 and will be available soon. Until then, track imprest amounts offline and recover them manually via Run Payroll.

What you can do instead

Tracking imprest offline:

1. Maintain a spreadsheet to track all imprest amounts disbursed to employees with the following details: Employee Name, Employee ID, Imprest Amount, Date Disbursed, Amount Recovered to Date, Balance Pending Recovery

2. Update this spreadsheet every month
   
   

Recovering imprest via Run Payroll:

3. Go to Payroll > Run Payroll for the relevant month

4. Click Edit Salary for the employee

5. In the Deductions section, add a Net-Pay Deduction component and enter the recovery amount for the month

6. Save and proceed with payroll finalisation. The recovery will appear as a deduction in the employee's payslip

7. Update your offline tracking spreadsheet to reflect the recovery
   
   

For example: an employee was disbursed an imprest amount of Rs. 10,000 in January. You have agreed to recover Rs. 2,000 per month over 5 months. In February's payroll, go to Edit Salary for that employee, add a Net-Pay Deduction of Rs. 2,000, and update your spreadsheet to show Rs. 2,000 recovered and Rs. 8,000 pending. Repeat each month until the full amount is recovered.

Available on Payroll Engine 2.0 by: September 2026