Salary structure and components
Basic, HRA, allowances and deductions, as fixed amounts or a percentage of basic.
Each employee's salary is a basic plus components.
Components
Create them once in Payroll Management → Salary Components:
- Earnings: HRA, conveyance, special allowance…
- Deductions: canteen, uniform…
Each one is either a fixed amount (₹1,600 conveyance) or a percentage of basic (HRA 40%). Statutory deductions (PF, ESI, PT, TDS) are worked out by payroll; don't add them as components.
A person's salary
In Employee Salaries, set their basic and tick the components they get. If one person gets a different amount for a component (say a special allowance), type their own amount for it.
Not working?
Gross is different from what I expected. Remember percentage components move with basic. If you raise basic, HRA goes up too.
A component doesn't show on payslips. It's inactive, or it isn't ticked for that employee.
Frequently asked questions
How do I give an increment?
Use Salary revisions. It keeps the history, handles arrears and sends a letter.
Is CTC the same as gross?
Not quite. Gross is what's paid monthly before deductions. CTC also includes the employer's PF and ESI.