Hotels, restaurants & banquets

Payroll for hotels that don't close

Split-duty shifts (10am-2pm + 6pm-11pm), service charge / tip pool distribution, meal allowance, ESI for housekeeping + maintenance, peak-hour rostering. For boutique hotels through 200-key properties.

Real problems · real fixes

What hotels, restaurants & banquets actually need from payroll

Each row is a pain point we've heard from operators in this vertical — and the specific FastLegal Payroll feature that addresses it.

ProblemService charge collected from guests goes into a tip pool — distribution is opaque, audit-light.

FastLegal solvesService Charge / Tip Pool is a built-in salary component. Configure the pool amount monthly; engine distributes it proportionally to participating roles per the hotel's policy.

ProblemF&B staff work split duty (lunch service + dinner service with a 3-hour mid-day break) — generic HRMS calls it a 12-hour day.

FastLegal solvesSplit duty shift pre-loaded (10:00-22:00 with 180-minute break) — actual working time is 9 hours. Engine pays correctly.

ProblemMeal allowance for staff who eat at the hotel canteen is treated as taxable.

FastLegal solvesMeal Allowance is a built-in non-taxable reimbursement (₹1,500/mo default). Per Section 17(2)(iiia) of the ITA, food provided by the employer up to ₹50/meal is exempt.

ProblemFront office, F&B, housekeeping, kitchen — all peak at different times. One roster doesn't fit.

FastLegal solvesThree shift templates pre-loaded: Morning (07-15), Evening (15-23), Night (23-07). Plus the Split duty shift for F&B. Assign per department.

ProblemESI applies to housekeeping + maintenance + lower-tier F&B staff but the threshold (₹21k) is easy to miss.

FastLegal solvesEngine flags every employee crossing or falling under the ESIC ceiling each month. Auto-computes 0.75% employee + 3.25% employer contribution.

ProblemGM / FOM / Housekeeper / Chef / Steward hierarchy needs the right designation list.

FastLegal solvesIndustry profile pre-loads 12 designations across Guest-facing (FO Manager, Reception, Concierge, Housekeeper, F&B Manager, Captain, Steward) and Back-of-house (Chef, Sous Chef, Commis Chef, GM).

Built for the workflow

Three things that change when you pick hotels, restaurants & banquets at signup

Shifts & tips

Split duty + tip pool, modelled correctly

Two hospitality-specific patterns that generic payroll forces you to hack around. FastLegal handles both natively.

  • Split duty · 10:00-22:00 with 180min break = 9h working
  • Morning / Evening / Night shifts also pre-loaded
  • Service Charge / Tip Pool · pool-and-distribute
  • Pool participation per role / department
Compensation

Standard salary + meal + uniform allowances

Two allowances every hotel pays and gets the tax treatment wrong half the time. FastLegal pre-loads them with the right non-taxable flag and §17(2)(iiia) reference.

  • Meal Allowance · ₹1,500/mo · §17(2)(iiia) exempt
  • Uniform Allowance · ₹1,000/mo · non-taxable
  • Standard Basic + HRA + LTA + Special structure
  • Service charge distribution as separate earning line
Statutory

ESI for staff who fall under the wage ceiling

Hotels almost always have a mix: chefs and managers above the ESI ceiling, housekeeping + commis chefs + stewards below. FastLegal flags eligibility every month and contributes correctly.

  • ESI · 0.75% employee + 3.25% employer · auto-flagged
  • PF · 12%/12% on basic capped at ₹15k
  • Hospitality OT · 2× weekday, 2× weekend
  • Statutory Diwali bonus per Payment of Bonus Act 1965
Compliance baked in

The statutes that govern hotels, restaurants & banquets

FastLegal Payroll references each of these frameworks correctly in its payslips, PDFs and statutory exports.

Shops & Establishments Acts

State-wise registration for the hotel premises. Working hours, weekly off, leave rules per state.

ESI Act, 1948

Mandatory ≥ 10 workers earning ≤ ₹21k gross. Common for housekeeping, commis chefs, stewards.

EPF & MP Act, 1952

Mandatory ≥ 20 staff. Every hotel ≥ 30 rooms easily crosses this.

Section 17(2)(iiia) ITA

Free meals provided by employer up to ₹50/meal are tax-exempt.

Payment of Bonus Act, 1965

Statutory bonus 8.33% min, paid annually. Cap on ₹21k Basic+DA.

FAQ

Common questions from hotels, restaurants & banquets

How does the service charge / tip pool work in FastLegal?

Service Charge / Tip Pool is a built-in salary component. Each month, the hotel determines the pool amount (typically a percentage of F&B revenue or guest bills). You enter the per-employee distribution amount based on the hotel's policy (often role-weighted: captain 1×, steward 0.7×, commis chef 0.5×). Engine adds the share to each participant's payslip as a taxable earning.

Can FastLegal handle split-duty F&B shifts?

Yes. Split Duty shift is pre-loaded covering 10:00-22:00 with a 180-minute mid-day break = 9 hours of actual working time. Captains, stewards, and senior F&B staff are typically assigned to this; commis chefs work standard 8-hour shifts.

Is meal allowance taxable for hotel staff?

No — Meal Allowance is pre-loaded as a non-taxable reimbursement (₹1,500/mo default). Per Section 17(2)(iiia) of the Income-tax Act, food and non-alcoholic beverages provided by the employer up to ₹50/meal are tax-exempt. Hotels easily fall under this with staff dining at the in-house canteen.

Do we need ESI for housekeeping staff?

Yes. ESI is mandatory for any establishment with 10+ workers where any worker earns ≤ ₹21,000 monthly gross. Housekeeping, commis chefs, stewards, and lower-tier maintenance almost always fall under the wage ceiling. FastLegal flags every employee crossing or falling under it each month and computes 0.75% employee + 3.25% employer contribution.

How are night-shift differentials paid?

The Night shift template carries differentialPaisaPerHour = 4000 (₹40/hr). When payroll runs, the engine reads each employee's ShiftAssignment in the period and adds a SHIFT_DIFF line to the payslip — hours × rate. Front office and security usually have night-shift staff; F&B and housekeeping less so.

Free workspace · sign up in 60 seconds

Run your next payroll on FastLegal Payroll.

Create a workspace, bootstrap the standard Indian defaults (leave types, salary structure, holidays for two years), add your first employee, and run May payroll — all before your evening chai.

  • Workspace auto-bootstrapped on signup (leave types, salary structure, holidays)
  • PF / ESI / PT / TDS computed every run — every cycle
  • Employee + contractor portals included, no extra tier
  • No credit card needed