Specify Calculation for Component

When salary offered to personnel, salary breaks down into different component for that on each of the component need to specify how to calculate amount for that component.

• Pay Type – Pay type defines whether that component is considered as earning or deduction. Earning will be paid to employee and deduction will get deduct from salary.
• Calculated By – It gives the options as Flat amount, Calculate on Component, Calculate on CTC, Calculate on Gross Pay, Slab Wise.

• • Flat Amount – While calculating the salary, entered amount will be considered full or according to Present days of employee on selection of Flat Amount Calculated On field.

 

 

• • Calculate On component – On selection of this option, component and percentage fields will get mandatory to fill. In salary calculation for this component, system calculate the given percentage on amount of selected component.

 

• • Calculate On CTC – on Selection of Calculate on CTC Percentage Field gets mandatory to fill, and It calculates the given percentage on annual salary of personnel.

 

• • Slab Wise - On selection of slab wise, grid will get visible to add the range and amount applicable for that specific range. For more details of how to add slabs check add/amend salary component slab process.

 

• • Calculate On Gross Pay – For this component amount will be calculated as monthly amount – sum of monthly amount of all components.