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

The Net Payroll generates a results cluster of wage types for 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.