{"id":5176,"date":"2024-11-27T13:35:52","date_gmt":"2024-11-27T08:05:52","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=5176"},"modified":"2024-11-28T14:48:53","modified_gmt":"2024-11-28T09:18:53","slug":"esop-complete-guide","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/","title":{"rendered":"Employee Stock Ownership Plan (ESOP)"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d345a343969\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d345a343969\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#What-is-ESOP\" >What is ESOP?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#How-do-ESOPs-work\" >How do ESOPs work?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Example-to-understand-ESOPs\" >Example to understand ESOPs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Cost-of-ESOPs\" >Cost of ESOPs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Features-of-ESOPs\" >Features of ESOPs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Types-of-ESOPs\" >Types of ESOPs\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Benefits-of-ESOPs\" >Benefits of ESOPs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Taxability-of-ESOPs\" >Taxability of ESOPs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#What-do-employers-need-to-know-before-opting-for-ESOPs\" >What do employers need to know before opting for ESOPs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Way-forward-for-ESOPs-in-the-startup-ecosystem\" >Way forward for ESOPs in the startup ecosystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#Over-to-you\" >Over to you<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/payroll\/learn\/esop-complete-guide\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-ESOP\"><\/span><b>What is ESOP?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ESOPs (Employee Stock Ownership Plans) is a type of benefit given by employers to employees as part of a compensation package. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under an ESOPs plan, employees are allotted a number of shares that can be purchased at a predetermined price, often lower than the market value, after a specified vesting period. These shares may provide employees with partial ownership of the company, aligning their interests with the company&#8217;s long-term success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under the ESOP contract, employees get the option of converting their ESOPs to stocks at a predefined rate over a period of time (vesting\/option period).<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span>It is important to note that ESOPs do not give employees stock ownership right away.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-do-ESOPs-work\"><\/span><b>How do ESOPs work?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Under an ESOP plan, the employer allots certain stocks to the employee from their trust fund. Now, as and when the employee completes the predefined vesting period, they can exercise their ESOPs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees need to work for the organisation for the specified vesting period to become eligible to exercise their ESOPs. If an employee leaves before the completion of the vesting period, they would not be able to exercise the ESOP and convert it into the company\u2019s stock.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter wp-image-5177 size-large\" src=\"https:\/\/razorpay.com\/learn-content\/uploads\/2021\/08\/Frame-4-1024x710.png\" alt=\"How do ESOPs work\" width=\"1024\" height=\"710\" srcset=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2021\/08\/Frame-4-1024x710.png 1024w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2021\/08\/Frame-4-300x208.png 300w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2021\/08\/Frame-4.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/span><span style=\"font-weight: 400;\">The three most important things to keep in mind for any ESOP plan are &#8211;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The number of shares that the employee can buy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The price at which the shares can be bought<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">The period after which the shares can be bought<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Example-to-understand-ESOPs\"><\/span><span style=\"font-weight: 400;\"><b style=\"font-size: 19px;\">Example to understand ESOPs<\/b><br \/>\n<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Say Sapna Private Limited offers its employees the following ESOP-<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">100 shares @Rs.100<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Option\/vesting period \u2013 5 years<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This means that after 5 years if the employee is still on Sapna Private Limited\u2019s <\/span><a href=\"https:\/\/razorpay.com\/payroll\/what-is-payroll-definition-process-complete-guide\/\"><span style=\"font-weight: 400;\">payroll<\/span><\/a><span style=\"font-weight: 400;\">, they can buy 100 shares Rs.100 each, irrespective of the market value of the company\u2019s stock.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some small businesses and startups allow vesting at a shorter interval: for example, 100 shares vest over 5 years proportionately: i.e., every year, the employee earns\u00a0 20 ESOPs.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cost-of-ESOPs\"><\/span>Cost of ESOPs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The initial costs of ESOPs are indirect like legal fees, accounting and admin costs. This cost may increase with the complexity and size of the plan.<\/p>\n<p>As the company grows or the ESOP plan expands, these costs can rise significantly, particularly if frequent valuations or complex regulatory filings are required.<\/p>\n<p>Furthermore, when employees exercise their stock options, there may be an impact on the company\u2019s cash flow and earnings per share (EPS) due to the dilution of existing shareholders&#8217; equity.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Features-of-ESOPs\"><\/span><b>Features of ESOPs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ESOPs are given free of cost to employees. They are a part of employee\u2019s <\/span><a href=\"https:\/\/razorpay.com\/payroll\/learn\/cost-to-company-ctc-vs-take-home-salary\/\"><span style=\"font-weight: 400;\">CTC<\/span><\/a><span style=\"font-weight: 400;\"> (Cost to company) structure<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The vesting date is when the employee can exercise their ESOP and convert it into the company\u2019s shares. Grant date, on the other hand, is the date when the ESOP is granted through a formal agreement between the employer and the employee<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ESOPs can be exercised partially or fully<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employers can give ESOPs to selective employees or to all depending on their recruitment strategy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In some cases, ESOPs can be exercised in a phased manner, i.e. in instalments over a specified period<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The price at which employees can buy a company\u2019s shares through ESOPs is called the exercise price or grant price<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It\u2019s not mandatory for employees to exercise their ESOPs<\/span><\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-5178 size-large\" src=\"https:\/\/razorpay.com\/learn-content\/uploads\/2021\/08\/Frame-5-1024x428.png\" alt=\"ESOPs\" width=\"1024\" height=\"428\" srcset=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2021\/08\/Frame-5-1024x428.png 1024w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2021\/08\/Frame-5-300x126.png 300w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2021\/08\/Frame-5.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types-of-ESOPs\"><\/span><b>Types of ESOPs\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Employees Stock Option Schemes (ESOS)<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ESOS is the most common employee ownership plan, and under this scheme, employees can buy stocks at a given price after the vesting period. This plan doesn\u2019t obligate the employees to invest in the company\u2019s stocks.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Employee Stock Purchase Plans (ESPP)<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Under these plans, employees can buy the company stocks at a price lower than the market value. The plan terms including price, vesting period etc. are predetermined. Once the employee exercises their ESOPs, they become company\u2019s shareholder.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Restricted Stock Award (RSA)<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In this scheme, employees are awarded a certain number of shares subject to the fulfilment of specified conditions.\u00a0 If the employee fulfils the underlying conditions, they can enjoy ownership of the stock. If, however, the condition is not met, the awarded stock is forfeited. What sets this scheme apart from the others is that the employee becomes the stock owner right from the time it is awarded.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Restricted Stock Unit (RSU)<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This scheme works similar to RSA. The only difference is that the employee does not become stock owner took unless the specified condition is fulfilled and the stock is actually issued to him.<\/span><b><\/b><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><b>Phantom Equity Plan\u00a0<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Under these schemes, employees are allotted notional shares of the company at a predefined rate. The grant or exercise price is recorded in the books of the company but not actually paid to the employee.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the vesting date, the employee is paid the profit they would have earned on exercising the shares. Thus, the employee does not exactly get the possession of shares but earns a profit from the notional buying of shares at a discounted price.<\/span><\/p>\n<ul>\n<li>\n<h3>Stock Appreciation Rights (SARs)<\/h3>\n<\/li>\n<\/ul>\n<p>SARs give employees the right to earn any appreciation in the company stock value. They allow employees to benefit from the increase in the company&#8217;s stock price without having to purchase the shares.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits-of-ESOPs\"><\/span><b>Benefits of ESOPs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While<\/span> <span style=\"font-weight: 400;\">ESOPs form a part of the employee\u2019s CTC, they are beneficial to both employers and employees.<\/span><\/p>\n<h3><b>How does an employer benefit from ESOPs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">For employers, ESOPs can be the deal-breaker in talent acquisition. Here\u2019s how \u2013<\/span><\/p>\n<h4><b>Acquiring top talent<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">When funds are often low during the company\u2019s initial years, ESOPs aim to bridge the gap in compensating the employees. If the employees believe in the potential of the company\u2019s growth, they accept ESOPs as part of their compensation package to acquire the company\u2019s stocks at reduced rates. This helps in acquiring good talent at a reduced initial cost.<\/span><\/p>\n<h4><b>Increase employee ownership\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">When employees have a stake in the company\u2019s ownership, they are self-motivated to put in their best efforts for maximum productivity. After all, the better the profitability, the better the company\u2019s stock value and the higher the profits that the employees can earn.\u00a0<\/span><\/p>\n<h4><b>Employee retention<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">ESOPs help in employee retention. Since employees are allowed to cash in their stock options only after the vesting period, they tend to stay with the company with a view to encash their stocks. This increases retention and also cuts down attrition rates, especially in tech, where attrition can be alarmingly high.<\/span><\/p>\n<p style=\"text-align: center;\"><b>[Also Read: <\/b><a href=\"https:\/\/razorpay.com\/blog\/payroll-compliance-pf-esi-pt-tds-opfin\/\" target=\"_blank\" rel=\"noopener noreferrer follow\" data-wpel-link=\"internal\"><b>Payroll Compliance Sourcebook for Businesses<\/b><\/a><b>]<\/b><\/p>\n<h3><b>How do employees benefit from ESOPs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">ESOPs benefit employees due to the following reasons \u2013<\/span><\/p>\n<h4><b>Higher profits at reduced rates <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">They help employees acquire good stocks at a reduced rate. Employees can, then, hold onto these stocks for long-term returns or sell them off at a higher market value to earn profits on their stockholding.<\/span><\/p>\n<h4><b>Additional Income Source<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">By becoming shareholders, employees get voting rights in the company\u2019s management. They also get to earn a dividend on their stockholding which serves as an additional income.<\/span><\/p>\n<h4><b>Job Stability\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Due to the vesting period, employees also get job stability which, in turn, drives up employee satisfaction.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Taxability-of-ESOPs\"><\/span><b>Taxability of ESOPs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">&#8211; There is no tax implication in allotting ESOPs to prospective talent. However, if you incur expenses on ESOPs, such expenses would be allowed as a tax-deductible expense from your business income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; When the employee exercises ESOPs, they are taxable as per the employee&#8217;s tax bracket.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8211; If there&#8217;s a profit after the employee sells the shares, it is considered as capital gains. If the shares are sold within a year, a 15% capital gains tax must be paid, just like with any other purchase or sale of stock.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2013 If the capital gains are long-term (more than a year) 10% tax has to be paid without indexation benefit or 20% tax has to be paid with indexation benefit.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What-do-employers-need-to-know-before-opting-for-ESOPs\"><\/span><b>What do employers need to know before opting for ESOPs?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Though ESOPs can help employers attract good talent, especially in a cash-strapped economy, there\u2019s a lot to consider before offering it to the employees. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Firstly, there are specific legal rules and regulations governing the working of ESOPs. Businesses have to, comply with all the rules to run ESOPs legally and without facing non-compliance penalties.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, outsourcing ESOP governance and monitoring it internally incurs additional costs. Employers, thus, need to keep the cost structure in mind when introducing the concept of ESOPs in their organisation.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Way-forward-for-ESOPs-in-the-startup-ecosystem\"><\/span><b>Way forward for ESOPs in the startup ecosystem<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There have been many success stories about employees making attractive profits through their ESOPs. ESOPs have, thus, become quite popular in recent times when startups are driving business trends in India.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Startups are particularly hard-pressed for sufficient capital in their establishment phase. As such, ESOPs have proven to be the ideal compensation scheme for hiring and retaining talented employees.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Over-to-you\"><\/span><b>Over to you<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With startups having offered <\/span><a href=\"https:\/\/entrackr.com\/2021\/07\/startup-employees-pocket-100-mn-through-esops-in-first-half-of-2021\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">$700 million worth of ESOPs<\/span><\/a><span style=\"font-weight: 400;\"> since January 2020, there\u2019s no doubt that ESOPs are here to stay. But, businesses need to understand that there\u2019s a lot more than just offering lucrative benefits to maintain employee happiness and satisfaction.\u00a0 <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Seamless on-time salary and bonus payments, career growth opportunities, a trustworthy employee health insurance are some of the benefits that top the lists to retain talent.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Small businesses and startups can easily manage bonus payments &amp; salary hikes for their employees with <\/span><a href=\"https:\/\/razorpay.com\/payroll\/\"><span style=\"font-weight: 400;\">India\u2019s only fully automated payroll software<\/span><\/a><span style=\"font-weight: 400;\">\u00a0 \u2013 RazorpayX Payroll, along with\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automating salary disbursals &amp; compliance payments like PT, ESI, PF, and TDS<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Providing employees with a self-service portal that lets them access their payslips, apply for leaves and more<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Insuring employees\u2019 health with <\/span><a href=\"https:\/\/razorpay.com\/group-health-insurance\/\"><span style=\"font-weight: 400;\">best-in-class group health insurance<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And a lot more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So get started and simplify your salary payments along with incentives &amp; bonus payments like never before.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/\">Automate Payroll and Compliance for your Business<\/a><\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>\t\t\t<div id=\"rank-math-rich-snippet-wrapper\" class=\"\">\n\n\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ESOP stands for Employee Stock Ownership Plans. In this blog, we decode everything about ESOPs. Read on.\u00a0<\/p>\n","protected":false},"author":151156479,"featured_media":5205,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3404],"tags":[4052,3405],"class_list":{"0":"post-5176","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll","8":"tag-esops","9":"tag-payroll"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/5176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156479"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=5176"}],"version-history":[{"count":5,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/5176\/revisions"}],"predecessor-version":[{"id":14747,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/5176\/revisions\/14747"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/5205"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=5176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=5176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=5176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}