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:

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

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.