Salary Structures

From this page, you can create Salary Structures that define the income and deduction components for employee salaries.

To open this, navigate to Payroll->Payroll Configurations->Salary Structures and Headers->Salary Structures.

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.

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Income Heads:

This section defines all the earning components included in the salary structure.structure like:

• Bonus
• Allowance
• Incentive
• Basic Fixed Salary

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 a Bonus header is selected:

• Calculated On — select how the bonus is calculated:
  • Actual — calculated on the actual salary
  • Fixed Value — calculated on a fixed amount
• Value (%) — enter the bonus percentage or amount
• Upper Limit — enter the maximum bonus amount that can be paid. Leave blank if there is no upper limit
• Consider In ESIC — enable this to include the bonus amount in the ESIC calculation
• Paid Outside Payroll — enable this if the bonus is paid separately outside the regular payroll run. If this option is enabled, the Return Frequency field won't appear.
• Return Frequency — select how often the bonus is returned or paid out — for example, Monthly, Quarterly, or Yearly

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
percentage
• Notor Consider In ESIC — enable this to exclude this allowance from ESIC calculationamount
• Pay Allowance for Overtime — enable this to pay the allowance for overtime hours as well
• Tax Exempted Allowance — enable this to mark the allowance as tax exempt. When enabled, the following field appears:
  • Investment Type — select the investment type under which this allowance is tax exempted — for example, U/S 80C
• Not Consider In ESIC — enable this to exclude this allowance from the ESIC calculation

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

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Deduction HeadsHeads:

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.add like:

• PF
• PT
• ESIC
• TDS

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 —for TDS isheader. appliedIt automaticallycan basedbe ondefined thefrom configuredHRMS->Employees->Employee TDSManagement slabs.page's Payroll section for any employee.

For all deduction headers, the following additional fields appear:

Calculated On: Select the salary component (Basic Fixed Salary or Allowance) on which this deduction is calculated.

Description: Enter any additional notes about this deduction entry.

The deductionBulk tableAction displaysbutton allallows addedyou entriesto withdelete multiple salary structures at once, streamlining the followingmanagement columns:process.

• 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