diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.json b/erpnext/accounts/doctype/payment_entry/payment_entry.json
index 3a0a4a8d065..c7e05f70d7f 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.json
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.json
@@ -203,14 +203,14 @@
    "fieldtype": "Column Break"
   },
   {
-   "depends_on": "party",
+   "depends_on": "eval: doc.party && doc.party_type !== \"Employee\"",
    "fieldname": "contact_person",
    "fieldtype": "Link",
    "label": "Contact",
    "options": "Contact"
   },
   {
-   "depends_on": "contact_person",
+   "depends_on": "eval: (doc.contact_person || doc.party_type === \"Employee\") && doc.contact_email",
    "fieldname": "contact_email",
    "fieldtype": "Data",
    "label": "Email",
@@ -809,7 +809,7 @@
    "table_fieldname": "payment_entries"
   }
  ],
- "modified": "2025-01-31 17:27:28.555246",
+ "modified": "2025-03-24 16:18:19.920701",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Payment Entry",
diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 4e9e3c4c042..57e36a04bf2 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -38,7 +38,11 @@ from erpnext.accounts.general_ledger import (
 	make_reverse_gl_entries,
 	process_gl_map,
 )
-from erpnext.accounts.party import complete_contact_details, get_party_account, set_contact_details
+from erpnext.accounts.party import (
+	complete_contact_details,
+	get_default_contact,
+	get_party_account,
+)
 from erpnext.accounts.utils import (
 	cancel_exchange_gain_loss_journal,
 	get_account_currency,
@@ -441,12 +445,12 @@ class PaymentEntry(AccountsController):
 				self.party_name = frappe.db.get_value(self.party_type, self.party, "name")
 
 		if self.party:
-			if not self.contact_person:
-				set_contact_details(
-					self, party=frappe._dict({"name": self.party}), party_type=self.party_type
-				)
-			else:
-				complete_contact_details(self)
+			if self.party_type == "Employee":
+				self.contact_person = None
+			elif not self.contact_person:
+				self.contact_person = get_default_contact(self.party_type, self.party)
+
+			complete_contact_details(self)
 			if not self.party_balance:
 				self.party_balance = get_balance_on(
 					party_type=self.party_type, party=self.party, date=self.posting_date, company=self.company
diff --git a/erpnext/accounts/party.py b/erpnext/accounts/party.py
index 37b5b884234..5ca50b8d7c6 100644
--- a/erpnext/accounts/party.py
+++ b/erpnext/accounts/party.py
@@ -280,32 +280,50 @@ def get_regional_address_details(party_details, doctype, company):
 
 
 def complete_contact_details(party_details):
-	if not party_details.contact_person:
-		party_details.update(
-			{
-				"contact_person": None,
-				"contact_display": None,
-				"contact_email": None,
-				"contact_mobile": None,
-				"contact_phone": None,
-				"contact_designation": None,
-				"contact_department": None,
-			}
+	contact_details = frappe._dict()
+
+	if party_details.party_type == "Employee":
+		contact_details = frappe.db.get_value(
+			"Employee",
+			party_details.party,
+			[
+				"employee_name as contact_display",
+				"prefered_email as contact_email",
+				"cell_number as contact_mobile",
+				"designation as contact_designation",
+				"department as contact_department",
+			],
+			as_dict=True,
+		)
+
+		contact_details.update({"contact_person": None, "contact_phone": None})
+	elif party_details.contact_person:
+		contact_details = frappe.db.get_value(
+			"Contact",
+			party_details.contact_person,
+			[
+				"name as contact_person",
+				"full_name as contact_display",
+				"email_id as contact_email",
+				"mobile_no as contact_mobile",
+				"phone as contact_phone",
+				"designation as contact_designation",
+				"department as contact_department",
+			],
+			as_dict=True,
 		)
 	else:
-		fields = [
-			"name as contact_person",
-			"full_name as contact_display",
-			"email_id as contact_email",
-			"mobile_no as contact_mobile",
-			"phone as contact_phone",
-			"designation as contact_designation",
-			"department as contact_department",
-		]
+		contact_details = {
+			"contact_person": None,
+			"contact_display": None,
+			"contact_email": None,
+			"contact_mobile": None,
+			"contact_phone": None,
+			"contact_designation": None,
+			"contact_department": None,
+		}
 
-		contact_details = frappe.db.get_value("Contact", party_details.contact_person, fields, as_dict=True)
-
-		party_details.update(contact_details)
+	party_details.update(contact_details)
 
 
 def set_contact_details(party_details, party, party_type):
@@ -771,9 +789,9 @@ def validate_account_party_type(self):
 		account_type = frappe.get_cached_value("Account", self.account, "account_type")
 		if account_type and (account_type not in ["Receivable", "Payable", "Equity"]):
 			frappe.throw(
-				_(
-					"Party Type and Party can only be set for Receivable / Payable account<br><br>" "{0}"
-				).format(self.account)
+				_("Party Type and Party can only be set for Receivable / Payable account<br><br>{0}").format(
+					self.account
+				)
 			)