Salary

Salary Dependence on Service Book

1. Service book entry is a must for Salary calculation.
2. Either of BASIC-PAY or consolidated forms the base for salary calculation.
3. BASIC_PAY is defined in terms of Pay-in-Pay Band and Grade pay/Academic Grade Pay
4. After Appraisal cycle change is reflected in the service book of the employee in form of incremented Pay-in-Pay Band and Grade pay/Academic grade pay.
5. Grade pay/Academic grade pay also changes
   • In case of  promotion
   • In case of demotion
   • In case of Sabbatical

Salary Dependence on Muster Freezing

WORKING DAYS CALCULATION

CASE - 1

Working days calculation can be dependent on

• MUSTER (integrated with bio-metric and pulls attendance from there)
• LEAVE Register – Leave availed by employees and LWP’s

In such cases all calculations are automatic. Before calculation of salary Leave admin freezes attendance, and removes any discrepancies in the records, if any are present. After freezing of attendance Finance Admin calculates the salary.

CASE - 2

However in some organizations MUSTER ENTRIES are not COMPULSORY. In such cases configuration can be made such that each day default attendance of each employee is market unless he/she has applied for Leaves.

Provision however must be given to the Finance Admin to enter LWP manually at the time of Salary calculations. This is because Default attendance is market for each day even if the employee is absent and no leave application is filled.

FREEZING MUSTER

CASE - 1

Working days calculation can be dependent on

• MUSTER (integrated with bio-metric and pulls attendance from there)
• LEAVE Register – Leave availed by employees and LWP’s and LOP’s

In such cases all calculations are automatic. Before calculation of salary Leave admin freezes attendance, and removes any discrepancies in the records. After freezing of attendance Salary Admin calculates the salary.

Example :

• If no in-time and out time is and no leave application is found for a day for an employee.
• If only one punch is found for an employee on a day.

CASE - 2

However in some organizations MUSTER ENTRIES are not COMPULSORY. In such cases configuration can be made such that each day default attendance of each employee is market unless he/she has applied for Leaves.

Provision however is given to the Finance Admin to enter LWP manually at the time of Salary calculations. This is because Default attendance is market for each day even if the employee is absent and no leave application is filled.

Salary Configuration

The FIVE basic components (BASE COMPONENTS)  DEFAULT

• 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)

Addition Components – Any allowance added to the payment

Deduction Components – Any tax deducted from the payment

Each of the component 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 [null 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 En-cashment)

Salary Configuration

The FIVE basic components (BASE COMPONENTS)  DEFAULT