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 on “Payroll.”
• Click on “Salary Components.”
• Click on “New Salary Components.”

A Salary Components Information screen will appear. Fill in the following fields:

• Name: Enter the name of the salary item, such as Bonus, Allowance, or Deduction.
• Type: Select the item type from the dropdown list (Earnings or Deductions).
• Status: Choose whether the item is Active or Inactive.
• Description: Enter an optional description for the item.
• Default Account: Select the associated accounting account from the dropdown list.
• Reference Value Only: Enable this option if you want to create the item for reference purposes only, without affecting salary calculations.

Go to the Salary Component Method section and choose the appropriate method:

• Amount: Use this option if you want to assign a fixed value to the item (e.g., fixed allowance or deduction).
• Formula: This option allows you to create a dynamic formula based on variables such as basic salary, attendance days, or working hours.
  • Example: Doubling the basic salary if a certain condition is met.
• Test Formula: This option allows you to test the formula before saving the salary item. For more details, refer to the guide on How to test a salary component formula.
• AI (Experimental): You can automatically generate a salary item using AI. For more details, refer to the guide on How to create a salary component using AI.
• Condition: You can set a condition to apply the item only when a specific case is met. For example:
  • Apply an increase if the basic salary exceeds a certain amount.
  • Apply a deduction in case of lateness.

Note: You can use only one option, either Amount or Formula, not both.

After entering all the required data, click “Save” to create the salary item.