Salary Structure

Salary Structure

Define component-wise salary structures and assign them to employees.

Salary components

Go to HR → Salary Components. Define earnings and deductions:

EarningsDeductions
Basic SalaryPF (Employee 12%)
Dearness Allowance (DA)ESIC (Employee 0.75%)
House Rent Allowance (HRA)Professional Tax
Transport Allowance (TA)TDS (Income Tax)
Special AllowanceLoan recovery

Assigning a salary structure

Open an employee record and go to the Salary tab. Select the salary structure template and enter the Basic Salary. All other components are calculated automatically as a percentage of Basic or as fixed amounts.

PF employer contribution (12% of Basic) is calculated separately and added to the total payroll cost report, not deducted from the employee's salary.