Payroll

Multiple Salary Structure

Salary Structures

Standardise compensation with Payroll's Salary Structures for consistency & scalability.

When managing payroll, organisations need consistent salary frameworks across employee groups, some require basic structures, while others need complex multi-component setups. In Payroll, you can create both simple and advanced salary structures to match your organisation's compensation strategy.

Salary Structures in Payroll is a template-based system that standardises employee compensation packages. It enables you to create reusable salary templates with predefined component breakdowns that can be applied to multiple employees. It also ensures consistency in salary calculations and simplifies payroll management.

Features

A Create New Structure option allows you to build a salary template from scratch with custom component distributions.

By creating new structures, you can design compensation packages tailored to specific roles, departments, or employee levels while maintaining standardisation. You also get to test calculations before implementation.

To create a new salary structure:

  1. Navigate to Settings → Salary Structures→ Manage.

    Salary Structures Manage option highlighted under Component Library in Settings.

  2. Click Add Structure button in the top-right corner.

  3. Select Create new from the dropdown menu.

    Add Structure button on the Salary Structures page.

  4. Fill in the General details:

    • Enter a Structure name (must be unique across all structures).
    • Add a Description to explain the structure's purpose (for example, 'Salary structure for employees whose income falls below the tax bracket').
    • Click Next to proceed.
    Create structure form with Structure name and Description fields.

  5. Build your structure:

    • The page displays existing components with input fields for values.
    • Enter percentages or amounts for each component (for example, Basic: 50%, HRA: 25%).
    • Components marked as "Residual component" auto-calculate to balance the CTC.
    Build your structure page with Earning components and a sample CTC preview.

  6. Add additional components:

    • Click Add components to include more salary elements.
    • Select from All, Earnings, or Non-Payable Benefits tabs.
    • Check the components you want to add.
    • Click Add to template to include selected components.
    Add component to template dialog with Earnings and Non-Payable Benefits filters.

  7. Preview with sample CTC:

    • Enter a test amount (for example, ₹12,00,000 per year).
    • View the monthly breakdown for each component.
    • Verify calculations are correct.

  8. Create the structure:

    • Review all components and their distributions.
    • Click Create Structure to save the template.

To modify a salary structure:

  1. Navigate to Salary Structures.
  2. Locate the structure you want to edit.
  3. Click on the structure name to view details.
  4. Click Edit to modify components.
  5. Make necessary changes to component values.
  6. Click Save Structure to apply changes.

To disable a salary structure:

  1. Follow steps 1-3 from the modification process.
  2. Click the Disable button.

Watch Out!

If employees are currently assigned to this structure, it cannot be disabled until they are reassigned to a different structure.

Managing Salary Structures

Once you've created salary structures, you can view and manage them from the central dashboard. Payroll provides comprehensive tools to track structure usage and maintain templates.

Structure Overview

The Salary Structures page displays:

  1. Template name - Unique identifier for each structure.
  2. Description - Brief explanation of the structure's purpose.
  3. Status - Active or Disabled state.
  4. No. of employees - Count of employees using this structure.

Filtering and Search

Use the filter tabs to view:

  • All structures - Complete list showing 1 structure (1 Active, 0 Disabled).
  • Active - Only currently usable templates.
  • Disabled - Archived structures no longer in use.

Search for specific structures using the search bar by entering template names or descriptions.

Applying Structures to Employees

To assign a salary structure to employees:

  1. Navigate to People → Employee Management.
  2. Select the employee to update.
  3. Click Edit Salary Details.
  4. Choose Salary Structure from the dropdown.
  5. The system automatically applies component distributions.
  6. Override specific amounts if needed while maintaining structure percentages.
  7. Save the changes.

The selected structure will determine the employee's salary breakdown in all future payroll cycles.

Watch Out!

  • Each structure must have a unique name across the organisation.
  • Components from the library maintain their original tax treatments.
  • Changes to active structures don't affect existing employee assignments.
  • Disabled structures remain in the system for historical reference.
  • The preview feature uses the current tax rules for calculations.
  • Residual components ensure mathematical accuracy in salary distribution.

Watch the video below to understand how Salary Structures work:

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