Salary Component

Salary Component

A salary comprises of several different earning, deduction and reimbursement components.
Note:  After payroll is set up for the components you’ve associated with one or more employees, you can only edit the Name and Amount/Percentage. The changes made to Amount/Percentage will apply only to new employees.


Add Earning
Any money that an employee receives as an income is termed as an earning. Some of the common earning components are Basic, Housing and Transport (BHT), and Other Allowance.


Steps

Actions

1

Go to Settings > Salary Components

2

Click Add New Component > Component Type

3

Select the Component Name > Calculation Type (either Percentage or fixed Amount)

 

4

Enter the value and tick or untick if its taxable or pensionable

5

Click Save Component

Same thing Applicable to Deductions and Benefits

Add Deductions
They are the specific amounts taken out of your total earnings to pay for taxes, benefits, or other obligations.



Pay grade: Pay grades are basically for grouping or categorizing. It can also be used as a template for employees with the same pay components.


How to add a Pay Grade:




Steps

Actions

1

Go to Settings > Salary Components.

2

Click Add New Component > Deduction component.

3

Select the Calculation Type (either Percentage or fixed Amount)

4

Enter the value and tick or untick if its taxable or pensionable.

5

Click Create Component.

Work Schedule

This module allows you to set the standard working days for your organization. This schedule will be used to calculate payroll and proration unless overridden for individual employees.


 




Steps

Actions

1

Go to Settings > Salary Components.

2

Select Workdays > Create new schedule

3

Put a work schedule name

4

Select a work weekday

5

Click Update policy

Note: Changes to work schedule will affect payroll calculations for all employees using the standard schedule.

Standard Pay Frequencies

These are the predefined pay frequencies available for your organization i.e. (weekly, bi- weekly, monthly, quarterly etc.)


Info: Standard frequencies are predefined and cannot be modified. Use custom frequencies if you need different pay cycles.  

 Display Settings

This helps you control what information appears on employee payslips i.e company contributions.