The Salary Structure encompasses the specifics of the compensation provided to an employee, delineating the breakdown of various components constituting their pay.

Modifications to the Salary Structure, including adjustments among its components, can significantly influence an employee’s circumstances, such as the tax exemptions they can claim.

BizCentric HR facilitates the definition of Earnings and Deductions within a Salary Structure, alongside options for payroll frequency, payment mode, and other related features.

To access Salary Structure, go to:

Home > Human Resources > Payroll > Salary Structure

1. Prerequisites

Before you create a Salary Structure, it is advisable you have the following:

• Salary Component

2. How to create a Salary Structure

1. Go to the Salary Structure list, click on New.
2. Enter the Salary Structure Name.
3. Select the Company Name and Payroll Frequency.
4. Save and Submit.

2. Features

2.1 Earnings and Deductions

Earnings denote the Salary Components acquired by an Employee, encompassing elements such as basic pay, allowances, bonuses, and incentives that contribute to the employee’s Total Salary. Conversely, Deductions encompass the Salary Components subtracted from the employee’s Total Salary, typically comprising taxes.

Note: Only Salary Components set as ‘Earnings’ will be shown in the Earnings table and components set as ‘Deductions’ will be shown in the Deductions table.

To generate Earnings and Deductions, designate the Salary Component in the Component column. If the Formula/Condition was not previously specified when creating the Salary Component, input it at this stage. Moreover, you have the option to enter a predefined amount in the Amount column as well.

Note: Make sure to click on the downward arrow and enable the ‘Amount based on formula’ checkbox in case the Salary Component is calculated using a formula.

2.2 Account

In this section, the Mode of Payment and the Payment Account that is used to pay the salary can be specified.

2.3 Salary Structure for Salary based on Timesheets

In BizCentric HR you can also define the Salary Structure for Salary Slip based on Timesheet, which allows the Company to pay there Employee as per working hours.

Steps for creating Salary Structure based on Timesheets:

1. Go to Salary Structure List, click on New.
2. Select checkbox Salary Slip Based on Timesheet.
3. Select the Salary Component.
4. Enter the Hour Rate. Based on the Rate entered, the amount for Working hours for the selected Salary Component will be calculated accordingly.
5. Save and Submit.

2.4 Leave Encashment Amount Per Day

If an employee is eligible for cashable leaves, you can specify the leave encashment amount per day within this field for the respective Salary Structure. The calculation of the Salary component value on the Salary Slip will be based on the ‘Earning Component’ designated in the encashed Leave Type and the specified amount per day.

2.5 Max Benefits (Amount)

Within this field, you can specify the Maximum Benefits Amount for the Salary Structure. If this field is populated, ensure that the Salary Structure includes a Salary Component marked with “Is Flexible Benefits.” This component will be used to disburse the specified amount.

Once all the information is saved and submitted, you can allocate the Salary Structure to an employee either via the Assign Salary Structure button or by generating a new Salary Structure Assignment via the dashboard.

Furthermore, you have the option to assign the created Salary Structure to multiple employees based on factors such as Employee Grade, Department, Designation, etc., utilizing the ‘Assign to Employees’ button. Additionally, Salary Slips can also be directly generated through the dashboard.

3. Related Topics

1. Salary Component
2. Salary Structure Assignment
3. Payroll Entry