User guide

Salary Components Definition

Understanding Salary Components
Salary comprises of various components. These include Basic, HRA, Conveyance, PF, ESI, CCA, TA, DA, Bonus, Commission and others. Salary components vary in value. They can be additive (allowances) or Deductive (Deductions). They can be in absolute value or percentage of other salary component (HRA 12% of Basic). They can vary in frequency. Many components need to be calculated every month.
All salary components like Basic, HRA, statutory deductions (PF) are defined in the Salary Component Definition.
Configuring Salary Component
Salary Components are that components that constitute salary like HRA, PF etc. You must enter the Description which is the name by which component is to be referred for example basic. The options available are -
Absolute value (in this case a value absolute terms is entered e.g. 5000),
% of Basic(the component is calculated as the % value defined of the basic e.g. HRA is defined as 50% of Basic)
 (Path: Definitions Payroll Salary Components Definition)