The Net Payroll converts gross wages into net wages and processes the taxes for the employees. Gross wages includes wage types entered in Personnel Administration and those generated within Gross Payroll. The Net Payroll also includes the processing of EPF, SOCSO and HRDF.

The Net Payroll generates a results cluster of wage types for the employees in the payroll run. This cluster serves as the basis for all further processing and output from the payroll system. This includes the generation of statutory reports.

The Net Payroll is closely integrated with the other areas in SAP HR, as well as other SAP modules such as Financial Accounting and Controlling.