Set Up Salary Components and Structures
Salary setup is the foundation of every pay run. Define components (what can appear on a payslip), group them into structures (templates for roles or grades), then assign a current salary to each employee.
Salary components
- Go to Payroll → Salary Components.
- On first use, click Create Default Components to seed common items (Basic, HRA, Conveyance, PF, ESI, TDS, Loan, and similar).
- Add or edit components with:
- Type — Earning, Deduction, or Reimbursement
- Calculation — Fixed amount, or percentage of basic, gross, or CTC
- Taxable, display order, and active flag
- Filter the list by component type when the list grows.
- Deactivate unused items with Toggle Status. Delete only if the component is not used in a structure.
Percentage components are recomputed at calculate time from the employee’s current basic, gross, or CTC.
Salary structures
- Go to Payroll → Salary Structures.
- Create a structure with a code, name, and effective date.
- On the Edit screen, add components from the available list with an amount or percentage.
- Set one structure as Default if most employees share the same template.
- Clone an existing structure to create a variant (for example management vs. staff).
- Open Details to see which employees use that structure.
Assign employee salary
From Payroll → Employee Salaries → Create, or from Employees → Details:
- Select the employee and optional salary structure.
- Enter basic salary, effective from, and mark Is Current.
- Saving with a structure copies component lines and recalculates gross and net.
- Set an overtime rate per hour if overtime pay applies.
- When a new current salary starts, previous current records close automatically.
- If a raise’s effective date falls in a period that was already paid, the next run can include a retro pay line automatically.
:::warning Current salary required Employees without a current salary are skipped at Calculate and appear on the run’s exclusions list. Assign pay before the period window closes. :::