Sales
About Salary Components
Different salary components make up the salary structure. As an HR user, you can define custom salary components with certain conditions and formulas according to your applied policy to be used in contracts and apply and fit each employee individually.
Salary components may include the basic pay, allowances, bonuses and other earning or deduction components.
The system’s preset component is called “Basic”, where you can calculate and customize basic salary components for employees.
To create a new salary component
- Select “Payroll” from the navigation menu.
- Select “Salary Components“.
- Click the button “New Salary Component“.
- Input the salary component’s information
- Name: the name of the salary component (e.g. Transportation Allowance).
- Type: Select the type from the drop-down menu; Earning or Deduction. (e.g. in case of Transportation Allowance, the type is “Earning”).
- Status: Select the status from the drop-down menu; Active or Inactive. (The default value is “Active”).
- Description: Add a description of the salary component as required.
- Salary Component Value:
- Condition: Set a condition using placeholders for the salary component to apply in case it is true. Click the tag button to view all the system’s variables you can set your condition using. (Condition example: employment_level = 2, it means the salary component will apply if and only if the employment level of this employee is level 2)
- Amount or Formula: Either set a fixed amount or construct a formula to change based on the value of the variable, which varies from one employee to another.
- Amount: Enter a fixed amount of the component. (To be added or deducted based on the Type you input earlier).
- Formula: Construct a formula using the system’s variables to be calculated, it results differently according to employees. (e.g. basic_salary/30*4, in this case, the basic salary differs from one employee to another, so the component value differs too).
- Default Account: Select an account in case you wish for a certain account to have this salary component financially computed from.
- Reference Value Only: Check this checkbox in case you wish for no financial computations to take place in any account.
- Note that you can either set an account or check the “Reference Value Only” checkbox.
- Click “Save“.