Salary Configuration

Prerequisite

Finance Policy and Renewal Detail Policy should be configured

Roles

Finance Admin

Path

Salary » Salary Configurations

Purpose

1.Salary Components

1. Configuring components on which salary calculation is based.

2. Defined by default five basic components

• Pay-In-Pay Band (Entered while employee upload)
• Grade Pay (Entered while employee upload)
• Academic Grade Pay (Entered while employee upload)
• Basic Pay (Although entered while employee upload, recalculated every month)
• Consolidated (If the employee is not on scale)

3. Can Add/Edit components of following types

• Addition
• Deduction
• Formula based
• Manual

4. Set formulas of each component (except manual) for respective post types at once.

5. Each components needs to be defined in terms of whether

• It is core salary variable or an additional component
• It is formula based, slab based or manual (e.g. 80*BASIC, if Basic in range 0-4200 then 1600, or manual value)
• Is it Part of a group (DA-60%, DA-72%, DA-83% all are grouped under common name DA)
• Should it be recalculated every month or carry forwarded (applicable only for manual variables) (DA vs. Loan Amount)
• Should it be paid with the salary or by a separate payment voucher (Salary amount vs. Medical Encashment)

6. Arrear components are added automatically when parent is added.

2. Set Component Priority

1. For each component, its priority need to be set.
2. “Component Priority” means that when amount is calculated using respective formula, dependent component amount should be available. (e.g. Gross Salary depends on Basic Pay + DA + HRA... etc. thus before gross amount is calculated, Basic Pay / DA / HRA amounts should be available for calculation.)
3. Priority is set by default for Pay-In-Pay Band, Grade Pay , Academic Grade Pay, Basic Pay and Consolidated components.

      4.   Thus, after adding/editing components, their priority needs to be set.

3. Tax Structure

1. Tax Slab

a. Tax slabs can be configured for the following

• Male (Below 60 years of age)
• Female (Below 60 years of age)
• Senior Male (Above 60 years and below 80 years of age)
• Senior Female (Above 60 years and below 80 years of age)
• Super Senior Male (Above 80 years of age)
• Super Senior Female (Above 80 years of age)

2. Tax Exemptions

a. Tax exemptions or monetary exemptions both heads and subheads can be added here.

b. Exemption limits, WEF (with effect)Date and type i.e. Formula/Manual and/or Addition/Deduction can also be set.

3. Tax Exemptions Additional

a. Education Cess in percent can be defined.

Reflection

1. As it is a configuration UI, its reflection will be visible from start point till the end.