Create/ Amend Salary Components

A Salary Component is an element that make up an Employee’s total compensation package.The salary which is paid to employees consists of the different components. Components can be the earnings or deduction from the salary offered. The offered salary breaks into the different components.

Follow the steps given below to create Salary Component.

• Navigate to -> Menu Category.
• Select Payroll menu category.
• Navigate to -> Payroll.
• Click on -> Salary Component.
• Click on -> Create button on Salary Component List page.
• Salary Component detail page will get open.
• Add name.
• Set Type.
• Select Pay Type as follow

1. Earning – It is a type of component that includes all the elements of an employees Compensation Package that directly contribute to their earnings or income.
2. Deduction – It is a type of component that includes all the elements of an employees Compensation Package that directly reduce to their earnings or income by deducting certain amount from their gross pay.

• Select Calculate By Field as follow

1. Flat Amount – Adds Amount Field on salary component detail page and, The amount into this field is directly calculated
2. Calculate on Component – Adds Components and Percentage field, According to these fields salary component will be calculated.
3. Calculate on CTC – Adds Percentage field on Salary component detail page. And component will be calculated according to percentage set into “Percentage” field.
4. Calculate on Gross Pay – Calculation of salary structure will be done according to Gross Pay.
5. Slab Wise – Adds an extra field as “Field Name” and component will be calculated according to the value set into the “field Name” Field of a particular Slab.

• Click on -> Save button.

Basic Salary Component

 

D.A Salary Component

 

H.R.A Salary Component

 

Flexi Salary Component

 

Slab Salary Component