Salary Deductions
Define custom deductions with flexible rules. Read on to learn more about Salary Deductions in Runtime HRMS.
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Define custom deductions with flexible rules. Read on to learn more about Salary Deductions in Runtime HRMS.
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Runtime allows you to define custom deductions with multiple options like fixed amount, percent based etc. This article explains various types of deductions and how to configure rules for deduction applicability.
Runtime HRMS offers 3 types of deductions as follows:
Fixed Amount
Salary Percent
Manual Input
Each of the deduction type is explained in following paragraphs.
Fixed Amount
In this type of deduction, you can specify a fixed amount to be deducted from employees’ salary every month. For e.g. you can specify Rs.150 as a fixed deduction for refreshments provided to staff members.
Salary Percent
Using Salary Percent deductions, you can specify a percentage of salary to be deducted from employees salary every month. You can select minimum amount, maximum amount and salary components which will be considered for calculating the percentage.
As shown in the image above, we have created a deduction named ‘Health Insurance’ and set the percent to be 2% of Basic Salary. We have specified minimum amount as 200 and maximum amount as 1000 for this deduction.
Manual Input
Manual Input deductions are simply deductions where amount of deduction is to be captured manually for each employee every month.
A commonly used manual deduction is ‘Advance Salary’. Here, you need to input the amount of advance taken by an employee during the month. The same will be deducted from employee’s salary at month end.
Conclusion
As you can see, Runtime HRMS supports multiple types of deductions with flexible applicability rules. Using these options, you can create a wide variety of deductions as per your business needs.
For more information, feel free to
