Salary Setup

Build salary structures, the base salary plus allowances and deductions for a grade, that payroll uses to pay each employee.

Salary Setup is where you build salary structures: a base salary and the allowances and deductions for a grade of staff, such as Grade A - Manager. Payroll uses the structure assigned to each employee to work out their pay. The menu item opens the Salary Structures page of HR & Payroll.

Before you begin

• Your plan must include the HR & Payroll module. Without it this menu item is hidden.
• You need a role that can view and edit salary structures.
• Set up the salary components (allowances and deductions) first. See Salary Components.
• Statutory rates and tax slabs are set under Statutory & Tax Slabs.

Where to find it

Open Settings → HR & Payroll → Salary Setup. The same page is under HR & Payroll → Payroll → Salary Structures.

Create a salary structure

1. Click + New Structure.
2. Under Structure Details, type the NAME, for example Grade A - Manager.
3. Type the GRADE LEVEL, for example 1, if you use grades.
4. Type the BASE SALARY.
5. Add a DESCRIPTION if it helps.
6. Under Salary Components, click Load Defaults to add the usual components, or + Add Component to add them one by one.
7. For each component, enter a Fixed Amount or a % of Basic. The Computed column shows the result.
8. Check Total Earnings, Total Deductions and NET PAY at the bottom.
9. Click Create Structure.

Give a structure to an employee

1. Open the employee in HR & Payroll → Employees and save them first if they are new.
2. In the salary structure section, choose the Structure.
3. Set the Effective From date.
4. Click Assign.

The structure marked CURRENT is the one in force. A payroll run pays each month on the structure in force for that month, so a new structure from a later date does not change earlier months. See Payroll Runs.

Common questions

Several employees share a grade. Do I make one structure each? No. Make one structure per grade and assign it to everyone in that grade.

An employee got a raise. Assign a new structure with an Effective From date, or record an increment under HR & Payroll → Payroll → Increments. Earlier months keep the old pay.

Load Defaults added nothing. The default components do not exist in your company yet. Add them under Salary Components first.

I do not see Salary Setup in Settings. Your plan does not include HR & Payroll, or your role cannot open salary structures.