Salary Structures

Salary Structures are salary definitions that can be used to assign salary details to new joiners and existing employees.

Add a Salary Structure

To start defining salary structures, go to Setup > Salary Structures.

Salary Structure Setup Option

The following page lists all the defined salary structures.

List of Salary Structures

To add a new structure, click on Add New and provide a name of the salary structure.

Add New Salary Structure Dialog

To make changes to a salary structure, click on Edit icon from the list of salary structures.

Salary Structure Edit

On the edit page, you can have options to rename and delete the salary structure.

Allocation Rules

Scroll below to see Allocation Rules for currently selected salary structure.

Allocation Rules of Salary Structure

Begin by adding a rule from the box at right. To understand this feature, let's take an example.

Here's a salary structure we want to define using the allocation rules:

Basic Salary	HRA	Bonus	Other Allowance
50% of Gross Salary	50% of Basic Salary	If Basic is less than 15,000 no bonus	Remaining Gross Salary
Minimum 15,000	Min. 50% of Basic Salary	If Basic is 15,000 or more, then 8.33% of Basic Salary
Maximum 22,000	Maximum 11,000

Here is how we would define the rules for various components

Basic Salary

1. Salary Component: Select Basic Salary

2. Order No: Enter 1

3. Conditional Definitions:

   • If Gross Salary is more than 0, then calculate 50% of Gross Salary, keep between 15000 to 22000

Basic Salary Allocation Example

HRA

1. Salary Component: Select House Rent Allowance

2. Order No: Enter 2

3. Conditional Definitions:

   • If Gross Salary is more than 0, then calculate 50% of Basic Salary, keep between 0 to 11000

HRA Allocation Example

Bonus

1. Salary Component: Select Bonus

2. Order No: Enter 3

3. Conditional Definitions:

   • If Basic Salary is more than 14999, then calculate 8.33% of Basic Salary, keep between 0 to 0

Bonus Allocation Example

Other Allowance

1. Salary Component: Select Other Allowance

2. Order No: Enter 4

3. Conditional Definitions:

   • If Gross Salary is more than 0, then calculate 100% of Gross Salary, keep between 0 to 0

   • Make sure to check Do not exceed Gross Salary

Do not exceed Gross Salary

Checking this option makes sure that the calculated value of the component, along-with values of earlier components (by order no), do not exceed the Gross Salary entered by you when applying the salary structure.

Other Allowance Allocation Example

Allocation Output

Following the example above, if we enter 50,000 as Gross Salary, the allocation shall be as follows:

• Basic Salary: 22,000 (50% of Gross Salary)

• HRA: 11,000 (50% of Basic Salary)

• Bonus: 1,833 (8.33% of Basic Salary)

• Other Allowance: 15,167 (Remaining from 50,000 after Basic, HRA and Bonus)

Conclusion

Salary Structure is a powerful feature of Runtime HRMS which can be used to define any type of salary structure that your organization follows. At the time of hiring and promotions, you simply need to provide the Gross Salary and select the Structure applicable to the candidate. The system will automatically allocate the amount to various components and save you a lot of time in processing salary revisions.