Salary Structures
From this page, you can create Salary Structures that define the income and deduction components for employee salaries.
Salary Header:
Enter a name to identify this salary structure — for example, IIS Structure or Default.
Active:
Enable this to mark the salary structure as active and available for assignment to employees.
Income Heads:
This section defines all the earning components included in the salary structure. Select a header and click + to add it to the table.
Headers:
Select the income payroll header to add — for example, Incentive, Allowance, or Basic Fixed Salary. The fields that appear after selecting a header depend on the header type:
When an Incentive header is selected:
- Calculated On — select how the incentive is calculated:
- Actual — calculated on the actual salary
- Fixed Value — calculated on a fixed amount
- Value — enter the incentive value (percentage for Actual and amount for Fixed Value)
When an Allowance header is selected:
- Calculated On — select how the allowance is calculated:
- Actual — calculated on the actual salary
- Fixed Value — a fixed amount
- Variable — calculated as a variable amount
- Basic — calculated as a percentage of basic salary
- Value — enter the allowance value
- Not Consider In ESIC — enable this to exclude this allowance from ESIC calculation
- Pay Allowance for Overtime — enable this to pay the allowance for overtime hours as well
When a Basic Fixed Salary header is selected:
- Calculated On — select how the basic salary is calculated:
- Actual — calculated on the actual salary
- Fixed Value — a fixed amount
- Value — enter the basic salary value
The income table displays all added entries with the following columns:
- Header — the income component name
- Slab — the slab associated with the header if applicable
- Calculated On — the salary component used for calculation
- Value — the amount or percentage
- Bare By — who bears this component
- Amount — the calculated amount
- Description — additional notes
- Return — whether the component is returnable
Deduction Heads
This section defines all the deduction components included in the salary structure. Select a header and click + to add it to the table.
Headers: Select the deduction payroll header to add. The fields that appear after selecting a header depend on the type of deduction:
When a Provident Fund header is selected:
- EPF Slab — select the PF slab to apply from the configured provident fund slabs
When a Professional Tax header is selected:
- Professional Tax — select the PT slab to apply from the configured professional tax slabs
When an ESIC header is selected:
- ESIC Slab — select the ESIC slab to apply from the configured ESIC slabs
When a TDS header is selected: No additional slab selection is required — TDS is applied automatically based on the configured TDS slabs.
For all deduction headers, the following additional fields appear:
Calculated On: Select the salary component on which this deduction is calculated.
Description: Enter any additional notes about this deduction entry.
The deduction table displays all added entries with the following columns:
- Header — the deduction component name
- Slab — the slab associated with the deduction
- Calculated On — the salary component used for calculation
- Value — the deduction amount or percentage
- Bare By — who bears this deduction
- Amount — the calculated deduction amount
- Description — additional notes