Salary Components

Salary components are part of the salary structure (the total salary for a specific employee or a group of employees). They can either be earnings added to the employee’s basic salary, such as transportation allowances or compensation for overtime hours, or deductions from the basic salary, such as insurance and late penalties.

Salary components can be formulated as flexible conditions. For example, you can specify that for every hour of delay from the basic shift, a deduction of 0.5 of the employee’s basic salary should be applied, and so on.

• Note: Before you begin, make sure to activate the Payroll app in your account.

Adding Salary Components

From the main menu, click “Payroll“.

Click “Salary Components“.

Click “New Salary Component“.

Available Salary Component Options:

• Absence Deduction: A deduction applied when the employee is absent from work.
• Late Arrival Deduction: A deduction applied when the employee arrives later than the official start time.
• Early Leave Deduction: A deduction applied when the employee leaves before the official end of the workday.
• Missing Hours Per Day Deduction: A deduction for uncompleted working hours within a single workday.
• Missing Hours Per Attendance Sheet Deduction: A deduction based on missing hours recorded in the attendance sheet.
• Early Attendance Bonus: A bonus or incentive for employees who arrive earlier than the scheduled start time.
• Overtime Hours Per Day Bonus: A bonus applied for extra hours worked beyond the regular schedule in a single day.
• Overtime Per Period Bonus: A bonus applied for extended overtime worked across multiple periods beyond standard working hours.

1. Enter the salary component information as follows:
   • Name: Enter the desired name for the salary component.
   • Type: Select the component type from the dropdown, either “Earning” or “Deduction“.
   • Status: Choose the component status from the dropdown, either “Active” or “Inactive“.
   • Description: Enter the component description in the dialog box.
2. Enter the value for the salary component as follows:
   • Condition: Enter a condition for the salary component as needed, using system variables. When this condition is met, the system starts calculating the formula value.
   • Amount: Enter the desired value for the salary component.
   • Formula: Using system variables, enter the calculation formula value for the salary component.
     • Note: You can use either the Amount or the Calculation Formula, not both. To enable one of them, click the checkbox for the desired option.
3. Select default account data as follows:
   • Default Account: Choose the default account from the dropdown to associate with the salary component.
   • Reference Value Only: You can click the checkbox for this option to make the salary component a reference-only item created in the “Payslip” without any financial calculation.
4. Click “Save“.