Create a salary component Using a Formula
This side panel allows you to create and test a salary component formula and preview its results using real employee data, including contract and attendance details, before final application. All displayed data is read-only, and no changes are applied to the system during testing.
Activation Requirements
The user must have one of the following permissions:
- View All Contracts
- View Own Contracts
How to Access
- From the main menu, click Payroll.
- Click Salary Components.
- Click Add New Salary Component.
- From the add/edit page, in the Salary Components Method field, select Formula.
Setup Steps
First: Select Calculation Method
In the Calculation Method field, three options are available:
- Fixed Amount
- Formula
- AI
Select Formula.
Second: Select Type
Choose the payroll item type — required before proceeding:
- Earning — the calculated value is added to the salary
- Deduction — the calculated value is deducted from the salary
Third: Configure Formula & Conditions
Formula Section
- Enter the mathematical formula to be applied to the payroll item.
Example:{{$salary_component_1.amount}} * 10 / 100
- Or select variables from the available list based on the selected type.
Condition Section
- Enter the required condition that determines when the payroll item will be applied (whether earning or deduction).
- Click Test Formula to proceed to the processing screen.
Notes
The Test Formula button appears only when all the following conditions are met:
- The Item Name is entered
- The Type is selected
- The selected Calculation Method is Formula