Payroll that knows the jurisdiction (India today, the UAE from December 2026)
Tejas Vyas, Co-founder · Technology & Product · LinkedIn
Payroll is the part of an ERP that depends most on the country you are in. Get it wrong and the consequences are personal: an employee does not receive the right salary, a statutory deduction is missed, a return is filed late. For a business operating in India, payroll means PF, ESI, professional tax, TDS under Section 192, gratuity provisioning, leave encashment, bonus calculations under the Payment of Bonus Act, and state-specific labour-welfare-fund contributions. For a business in the UAE, it means WPS (the wage-protection salary file) compliance, end-of-service gratuity under UAE Labour Law, and allowance structures that vary by free zone.
Kinnow handles both - but at different depths today, and it is honest about the difference.
India: live and in depth
In India, Kinnow's payroll is live and deep. Kinnow calculates salaries from the CTC structure the company defines, breaks it down into basic, HRA, special allowance and other components, and works out the statutory deductions automatically.
PF contributions - employee's 12 per cent of basic (capped at 15,000) and employer's matching contribution - are calculated per pay period. ESI applies when gross salary is below the limit (currently 21,000 per month), with employee and employer rates applied automatically. Professional tax varies by state, each with its own slab and ceiling. Professional tax for 5 states: Maharashtra, Karnataka, Telangana, Tamil Nadu and West Bengal.
TDS under Section 192 is calculated based on the employee's projected annual income, declared investments under 80C/80D and the applicable regime (old or new). Kinnow handles mid-year regime changes, arrears, and the impact of variable pay on projected income. At year-end, it prepares Form 16 and the TDS return data.
Gratuity provisioning follows the Payment of Gratuity Act formula: 15 days' wages for every completed year of service, based on the last drawn salary. The provision is updated monthly so that the balance sheet shows what you owe so far.
UAE: from December 2026
From December 2026, in the UAE, Kinnow's payroll processes salaries with the correct allowance structures - basic, housing, transport and other allowances - and prepares the WPS salary file for upload to the bank. End-of-service gratuity arrives with the UAE edition in December 2026.
The UAE launch will not match the statutory depth of India on day one. VAT treatment on employee benefits, free-zone-specific rules, and pension contributions under the UAE nationals' scheme are planned. Kinnow will process payroll and prepare the WPS file, but the compliance checks will not be as deep as in India.
Why we say what is not done
We could market the UAE payroll as "compliant" and leave the gaps for the customer to discover. We do not. The status of each country is shown in the product, in the documentation and in the sales conversation. A customer in the UAE knows exactly what is automated and what still needs manual attention. As the compliance stack deepens, the label changes.
Payroll is too important for ambiguity. The employee's salary is a promise, and the statutory deductions are a legal obligation. The software that handles them must be precise about what it does and open about what it does not.
Frequently asked questions
What Indian states does professional tax cover?
Professional tax for 5 states: Maharashtra, Karnataka, Telangana, Tamil Nadu and West Bengal. Your payroll adviser confirms the amounts when you set up.
Can employees choose between old and new tax regimes?
Yes. Each employee can declare their regime choice. Kinnow calculates TDS under the chosen regime and handles mid-year changes as permitted by the Income Tax Act.
Will the UAE payroll generate the WPS file?
Yes, from the December 2026 launch. Kinnow prepares the WPS SIF salary file for upload to your bank. The file format follows the Central Bank of UAE's specifications.
When will the UAE payroll reach the depth of India?
The plan is deeper UAE compliance - free-zone rules, VAT on benefits, UAE nationals' pension - through 2027. The status in the product will update as each piece goes live.