Why is your company’s migration to Payroll Engine 2.0 pending?

When we migrate your account to Payroll Engine 2.0 (PE 2.0), we run pre-migration checks to make sure your data transfers cleanly and your payroll runs without issues on the new engine. If any of these checks flag a problem, your migration is paused until it is resolved.

This article explains the four most common reasons a migration stays pending, and what you need to do in each case.

1. Your payroll is finalised but not executed

PE 2.0 cannot accept a payroll that has been finalised but not yet executed. A payroll in this state is neither a clean draft nor a completed run. Migrating it as-is would leave that cycle in an unresolved state on the new engine, which could cause errors when you try to execute or review it later.

You have two options:

Option A: Execute the payroll

Complete the payroll run on the current engine as usual. Once executed, we will proceed with your migration immediately after.

Option B: Unfinalise the payroll

If the payroll is not ready to be paid out yet, unfinalise it (Settings > Payroll > Unfinalise) and leave it in draft. We will migrate your account, and you can re-finalise and execute on PE 2.0.

Once done, reply to our email with which option you chose and we will complete the migration.

2. Your payroll has pending additions or deductions

Additions and deductions (such as bonuses, reimbursements, or one-time deductions) that have been assigned to employees but not yet processed through a payroll run exist only in the current engine. They do not carry over to PE 2.0 until they are processed through a payroll run. If we migrate your account while these are pending, they will be lost.

For Migration:

We migrate your account as planned. You can then re-add the current assignments before running your payroll. You may view the current assignments in Reports > Salary Register.

Reply to our email with which option works for you and we will take it from there.

3. One or more employees have Special Allowance set to 0

PE 2.0 adjusts Employer PF and Employer ESIC contributions against the Special Allowance component in an employee's salary structure. This keeps the employee's CTC and net take-home unchanged when employer contributions are included in CTC.

For this to work, every employee needs a non-zero value in Special Allowance. If Special Allowance is set to 0, the engine has no component to adjust against, and the migration cannot be completed for those employees.

You have two options:

Option A: Rebalance the existing structure

Reduce one of the other salary components slightly and move that amount into Special Allowance. The employee's CTC stays the same, only the internal split changes.

Option B: Switch to a standard salary structure

Move the affected employees to a standard salary structure, where Special Allowance is automatically computed as the residual after all other components are accounted for.

To find affected employees: open Salary Register and filter for employees with 0 Special Allowance.

Once the structures are updated, reply to our email and we will complete the migration.

4. Employer NPS is configured on your account

This does not block your migration. Your account will migrate as planned and no payroll data will be lost.

Employer NPS contributions are not automatically carried over to PE 2.0 because the configuration model is different. On PE 2.0, Employer NPS is managed through the Flexi Benefits module, which gives you better control over declaration windows, proof submission, and tax treatment under both tax regimes. These assignments need to be set up manually after migration.

Once your migration is complete, your payroll admin will need to re-assign Employer NPS for the affected employees via the Flexi Benefits module on PE 2.0.

To find affected employees: pull the Salary Register from your most recent payroll run.

If you need help setting this up on PE 2.0, refer to this video: https://youtu.be/rdF4s2exucs

Still have questions?

Reply to the email you received from the RazorpayX Payroll team and we will help you resolve it.