# Salary Structures ### Add a Salary Structure To start defining salary structures, go to Setup > Salary Structures.

The following page lists all the defined salary structures.

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

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

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.

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**

#### **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**

#### 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**

#### 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** {% hint style="info" %} **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. {% endhint %}

### 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.