{"id":10910,"date":"2023-12-10T09:00:58","date_gmt":"2023-12-10T09:00:58","guid":{"rendered":"https:\/\/docs.daftra.com\/user_manual\/%d8%a5%d8%b6%d8%a7%d9%81%d8%a9-%d8%a8%d9%86%d9%88%d8%af-%d9%88%d9%82%d9%88%d8%a7%d9%84%d8%a8-%d8%a7%d9%84%d8%b1%d8%a7%d8%aa%d8%a8-%d9%88%d8%b1%d8%a8%d8%b7%d9%87%d8%a7-%d8%a8%d8%a7%d9%84%d8%b9%d9%82\/"},"modified":"2025-05-26T10:17:53","modified_gmt":"2025-05-26T10:17:53","slug":"adding-salary-components-and-structures-and-connecting-them-to-the-contract","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/adding-salary-components-and-structures-and-connecting-them-to-the-contract\/","title":{"rendered":"Adding Salary Components and Structures and Linking them to the Contracts"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1748254663942{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">Employee salaries vary according to many factors, such as level or job role, and an individual employee&#8217;s salary may differ from one month to another based on performance and adherence to attendance timings and rules. It&#8217;s easier to set up <\/span><a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/salary-structures\/\"><span style=\"font-weight: 400;\">fixed salary templates\/structures<\/span><\/a><span style=\"font-weight: 400;\"> for each employee tier with similar salaries, such as accounting department employees in <\/span><a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/comprehensive-guide-creating-employee-contracts-in-daftra\/\"><span style=\"font-weight: 400;\">contracts<\/span><\/a><span style=\"font-weight: 400;\">, and also adjust <\/span><a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/salary-components\/\"><span style=\"font-weight: 400;\">salary components <\/span><\/a><span style=\"font-weight: 400;\">for each template\/ structure so that they are flexible, changing based on the rules you set yourself. Thus, Employee (A)&#8217;s salary is automatically reduced by $100 from the usual amount due to some deductions and penalties for the employee&#8217;s tardiness and early leave from his work shift.<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;The Salary Components&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1703497429152{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1703510859558{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">Generally, the salary is divided into:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Earning\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Basic:<\/b><br \/>\n<span style=\"font-weight: 400;\"> This includes the full basic salary amount, which is determined in <\/span><br \/>\n<span style=\"font-weight: 400;\">salary structures <\/span><span style=\"font-weight: 400;\">or directly within the <\/span><span style=\"font-weight: 400;\">contract<\/span>.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Other earnings:<\/b><br \/>\n<span style=\"font-weight: 400;\"> These could either be additional to the basic salary or deductions from it. They are added through salary components or directly in the contract or salary structure. Examples of salary components include (bonuses, profit sharing, transportation allowance, official holiday allowances, deductions for unexcused absences or lateness, etc.)<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote><p><span style=\"font-weight: 400;\">Salary components are a part of the salary structure.<\/span><\/p><\/blockquote>\n<p>[\/vc_message][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]<\/p>\n<blockquote><p>A salary component is assigned in the salary structure or in the employee&#8217;s contract.<\/p><\/blockquote>\n<p>[\/vc_message][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]Salary components can either be a fixed amount or variable, tied to a condition. For instance, an employee&#8217;s salary might increase by 30 pounds for each extra hour worked beyond their regular shift hours. This article will detail the method of adding conditions to salary components.[\/vc_message][vc_column_text css=&#8221;.vc_custom_1703511135041{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">To add a new salary component, click on <\/span><b>&#8220;Salary Components&#8221;<\/b><span style=\"font-weight: 400;\"> under <\/span><b>&#8220;Payroll&#8221;<\/b><span style=\"font-weight: 400;\"> in the main menu, then click the <\/span><b>&#8220;New Salary Component&#8221;<\/b><span style=\"font-weight: 400;\"> button.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10958 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h28_22.png\" alt=\"\" width=\"1764\" height=\"711\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h28_22.png 1764w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h28_22-300x121.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h28_22-1024x413.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h28_22-768x310.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h28_22-1536x619.png 1536w\" sizes=\"auto, (max-width: 1764px) 100vw, 1764px\" \/><span style=\"font-weight: 400;\">Enter the salary component details as follows: <\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Name: <\/b><span style=\"font-weight: 400;\">Enter the name of the salary component, preferably something descriptive.<\/span><\/li>\n<li aria-level=\"1\"><b>Type: <\/b><span style=\"font-weight: 400;\">Choose whether the component is <\/span><b>&#8220;Earning&#8221;<\/b><span style=\"font-weight: 400;\"> added to the basic salary or <\/span><b>&#8220;Deduction&#8221;<\/b><span style=\"font-weight: 400;\"> deducted from it.<\/span><\/li>\n<li aria-level=\"1\"><b>Status: <\/b><span style=\"font-weight: 400;\">Choose whether this salary component is <\/span><b>&#8220;Active&#8221;<\/b><span style=\"font-weight: 400;\"> or <\/span><b>&#8220;Inactive&#8221;<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li aria-level=\"1\"><b>Description: <\/b><span style=\"font-weight: 400;\">If you want to explain something related to the salary component. <\/span><\/li>\n<li aria-level=\"1\"><b>Salary Component Value: <\/b><span style=\"font-weight: 400;\">The value of the salary component can be:<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A fixed amount, for example, 200 pounds. <\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A condition that leads to the addition or deduction of a fixed amount from the basic salary. Example: Granting a 1000 pounds bonus to the accounting department employees after a year of joining the company. <\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A condition that results in the addition or deduction of an amount that varies based on the condition&#8217;s fulfillment. Example: Granting a 30 pounds bonus for each extra working hour beyond the employee&#8217;s shift hours. <\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Default Account: <\/b><span style=\"font-weight: 400;\">If you leave the default account, the entry will be posted to the Salaries and Wages account under Expenses in the chart of accounts. You can also choose any account in the chart of accounts that you wish to post to.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reference Value Only:<\/b><span style=\"font-weight: 400;\"> If <\/span><b>&#8220;Reference Value Only&#8221;<\/b><span style=\"font-weight: 400;\"> is activated, the earning\/deduction will not appear in the chart of accounts nor in the entries, while still being present normally when disbursing a payslip or viewing contract data.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10960 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h29_50.png\" alt=\"\" width=\"1228\" height=\"773\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h29_50.png 1228w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h29_50-300x189.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h29_50-1024x645.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h29_50-768x483.png 768w\" sizes=\"auto, (max-width: 1228px) 100vw, 1228px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Salary Structures&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1703501315321{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1703511203600{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">Salary structures are a repetitive templates\/ forms for salaries, which you can assign to an entire employment level in their contracts instead of manually re-entering them. <\/span><br \/>\n<span style=\"font-weight: 400;\">These structures include the basic salary + salary components that we explained in this article.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To add a salary structure , click on <\/span><b>&#8220;Salary Structures&#8221;<\/b><span style=\"font-weight: 400;\"> under <\/span><b>&#8220;Payroll&#8221;<\/b><span style=\"font-weight: 400;\"> in the main menu, then click on the <\/span><b>&#8220;New Salary Structure&#8221;<\/b><span style=\"font-weight: 400;\"> button.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10964 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h30_23-1.png\" alt=\"\" width=\"1720\" height=\"572\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h30_23-1.png 1720w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h30_23-1-300x100.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h30_23-1-1024x341.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h30_23-1-768x255.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h30_23-1-1536x511.png 1536w\" sizes=\"auto, (max-width: 1720px) 100vw, 1720px\" \/><\/p>\n<p><b>Enter the salary structure information as follows:<\/b><\/p>\n<p><b>Name:<\/b><span style=\"font-weight: 400;\"> Enter the name of the salary structure as required.<\/span><br \/>\n<b>Status:<\/b><span style=\"font-weight: 400;\"> Select from the dropdown menu the status of the salary structure, whether active or inactive.<\/span><br \/>\n<b>Payroll Frequency:<\/b><span style=\"font-weight: 400;\"> Select from the dropdown menu the pay cycle, whether it&#8217;s (weekly, bi-weekly, monthly, quarterly, yearly).<\/span><br \/>\n<b>Description:<\/b><span style=\"font-weight: 400;\"> Write a description of the salary structure in the box.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under earnings, enter the Basic salary component with a fixed amount. <\/span><br \/>\n<span style=\"font-weight: 400;\">You can add other earnings by clicking on the <\/span><b>&#8220;+Add&#8221;<\/b><span style=\"font-weight: 400;\"> button and choosing the salary component name you want to add to the template, as well as deductions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After finishing adding salary components, both earnings and deductions, click on the <\/span><b>&#8220;Save&#8221;<\/b><span style=\"font-weight: 400;\"> button.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10966 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47.png\" alt=\"\" width=\"1169\" height=\"663\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47.png 1169w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-300x170.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-1024x581.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-768x436.png 768w\" sizes=\"auto, (max-width: 1169px) 100vw, 1169px\" \/>[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; icon_fontawesome=&#8221;fas fa-book&#8221;]<span style=\"font-weight: 400;\">Salary templates are assigned to employees in their respective contracts. For more details, here is the <\/span><a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/comprehensive-guide-creating-employee-contracts-in-daftra\/\"><span style=\"font-weight: 400;\">guide to creating employee contracts<\/span><\/a><span style=\"font-weight: 400;\">.<\/span>[\/vc_message][vc_custom_heading text=&#8221;Various examples of setting up the value of the salary component and its effect on the payslip&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1703502136298{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1703502255295{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">As mentioned, there are several ways to formulate the value of a salary component, which allows for significant flexibility in automatically dispensing salaries without the need to re-enter each employee&#8217;s salary individually based on their adherence to attendance and timing, for example, or as a result of their work performance evaluation. Here are various examples to help you understand how to best utilize the conditions or formulas of salary components.<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;Fixed Amount&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][vc_column_text css=&#8221;.vc_custom_1748251886464{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">A fixed salary component can be linked to a condition, so it is not added unless the condition is met, or it can be unconditioned and applies to any employee to whom this component is added in their assigned salary structure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Example:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A salary component &#8220;Extra&#8221; was created with a value of $5000.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10968 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h33_23.png\" alt=\"\" width=\"1197\" height=\"673\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h33_23.png 1197w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h33_23-300x169.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h33_23-1024x576.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h33_23-768x432.png 768w\" sizes=\"auto, (max-width: 1197px) 100vw, 1197px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">And a salary structure was created for the employees of the Marketing Department entitled to the additional amount.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The basic salary appears as $10,000 in the salary structure, and the pre-defined extra salary component of $5,000.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10971 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-1.png\" alt=\"\" width=\"1169\" height=\"663\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-1.png 1169w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-1-300x170.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-1-1024x581.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h35_47-1-768x436.png 768w\" sizes=\"auto, (max-width: 1169px) 100vw, 1169px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Then the salary structure &#8220;Marketing + Extra&#8221; was assigned to the employee contract of Maria Addams.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34829 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nhgzbv.jpg\" alt=\"\" width=\"1293\" height=\"630\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nhgzbv.jpg 1293w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nhgzbv-300x146.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nhgzbv-1024x499.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nhgzbv-768x374.jpg 768w\" sizes=\"auto, (max-width: 1293px) 100vw, 1293px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">When creating the payroll, the employee&#8217;s pay slip shows a total amount of $15,000, which consists of $10,000 basic salary + $5,000 fixed component, dispensed to the employee without any conditions.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34831 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nnzhgdbfs.jpg\" alt=\"\" width=\"1315\" height=\"509\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nnzhgdbfs.jpg 1315w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nnzhgdbfs-300x116.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nnzhgdbfs-1024x396.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/nnzhgdbfs-768x297.jpg 768w\" sizes=\"auto, (max-width: 1315px) 100vw, 1315px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;A condition that if met, a fixed amount of an earning or deduction is applied to the basic salary&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][vc_column_text css=&#8221;.vc_custom_1748252349444{margin-left: 200px !important;}&#8221;]<span style=\"font-weight: 400;\">In cases where the salary component value type is a <\/span><b>&#8220;Fixed Amount&#8221;<\/b><span style=\"font-weight: 400;\">, and the fixed amount is tied to a condition, the salary component value is granted to the employee only if the condition is met and denied otherwise.<\/span><\/p>\n<p><b>Example:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A salary component &#8220;Bonus&#8221; was created with a value of $2000, granted under the following conditions:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Contract join date &lt; 2022<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meaning, that the bonus is applicable if the employee&#8217;s join date is before the year 2022, used for rewarding employees based on their years of service in the company.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-10977 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h47_19.png\" alt=\"\" width=\"1309\" height=\"759\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h47_19.png 1309w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h47_19-300x174.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h47_19-1024x594.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/2023-12-25_13h47_19-768x445.png 768w\" sizes=\"auto, (max-width: 1309px) 100vw, 1309px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The Bonus component was then assigned to the salary structure &#8220;Old Employee Bonus,&#8221; which was then assigned to the employee John Doe, who joined the company in 2021 and meets the salary component condition.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34833 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/rxdezgt.jpg\" alt=\"\" width=\"1169\" height=\"683\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/rxdezgt.jpg 1169w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/rxdezgt-300x175.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/rxdezgt-1024x598.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/rxdezgt-768x449.jpg 768w\" sizes=\"auto, (max-width: 1169px) 100vw, 1169px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The employee&#8217;s pay slip shows that the Bonus of $2000 was automatically granted in addition to the basic salary of $10,000, as the condition of the salary component is met.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34835 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/agwdf.jpg\" alt=\"\" width=\"1176\" height=\"766\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/agwdf.jpg 1176w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/agwdf-300x195.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/agwdf-1024x667.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/agwdf-768x500.jpg 768w\" sizes=\"auto, (max-width: 1176px) 100vw, 1176px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;A condition that, upon being met, results in either the addition or deduction of a variable amount based on the status of the condition&#8217;s fulfillment&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1748252721801{margin-left: 200px !important;}&#8221;]If the salary component is of the &#8220;Formula&#8221; type, this formula is linked to a condition related to attendance or to the salary components themselves.<\/p>\n<p style=\"font-weight: 400;\">Example:<\/p>\n<p style=\"font-weight: 400;\">If you want to set a bonus to be awarded to the worker at the end of their work period or at the end of each contract, it is determined through &#8220;Contract End Date&#8221; and &#8220;Payroll End Date&#8221;.<\/p>\n<p style=\"font-weight: 400;\">If the condition is met, a specific amount is calculated, or one or two months of salary as per the company&#8217;s policy.<\/p>\n<p style=\"font-weight: 400;\">Condition:<\/p>\n<p style=\"font-weight: 400;\">Contract end date == pay run end date<\/p>\n<p style=\"font-weight: 400;\">Result (Formula):<\/p>\n<p style=\"font-weight: 400;\">Salary component amount * 2<\/p>\n<p style=\"font-weight: 400;\">That is, if the contract end date matches the last day of the pay run period, a bonus equal to twice the employee&#8217;s basic salary is awarded.<\/p>\n<p style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34837 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/haegtwfsd.jpg\" alt=\"\" width=\"1167\" height=\"735\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/haegtwfsd.jpg 1167w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/haegtwfsd-300x189.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/haegtwfsd-1024x645.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/haegtwfsd-768x484.jpg 768w\" sizes=\"auto, (max-width: 1167px) 100vw, 1167px\" \/><\/p>\n<p style=\"font-weight: 400;\">Then, the annual bonus salary component was assigned to a salary structure called &#8220;Salary Structure 1&#8221;.<\/p>\n<p style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34839 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/hategwfr.jpg\" alt=\"\" width=\"1322\" height=\"744\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/hategwfr.jpg 1322w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/hategwfr-300x169.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/hategwfr-1024x576.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/hategwfr-768x432.jpg 768w\" sizes=\"auto, (max-width: 1322px) 100vw, 1322px\" \/><\/p>\n<p style=\"font-weight: 400;\">This structure was assigned to the contract of the employee &#8220;Jane Doe&#8221;, which ends on January 1, 2023.<\/p>\n<p style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34841 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/shezgfr.jpg\" alt=\"\" width=\"1186\" height=\"768\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/shezgfr.jpg 1186w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/shezgfr-300x194.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/shezgfr-1024x663.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/shezgfr-768x497.jpg 768w\" sizes=\"auto, (max-width: 1186px) 100vw, 1186px\" \/><\/p>\n<p style=\"font-weight: 400;\">Here appears a payslip for the employee for a month that matches the last day with December 31, 2022, coinciding with the end of the contract, hence the bonus is awarded at twice the salary amount.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-34843 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/vSAGTEhs.jpg\" alt=\"\" width=\"1118\" height=\"770\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/vSAGTEhs.jpg 1118w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/vSAGTEhs-300x207.jpg 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/vSAGTEhs-1024x705.jpg 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2023\/12\/vSAGTEhs-768x529.jpg 768w\" sizes=\"auto, (max-width: 1118px) 100vw, 1118px\" \/>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":13,"template":"","categories":[2197,2200],"tags":[2605],"class_list":["post-10910","user_manual","type-user_manual","status-publish","hentry","category-employees","category-manage-payrolls","tag---en"],"yoast_head":"<!-- This site is optimized 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