Salary Structures
Salary Structures are salary definitions that can be used to assign salary details to new joiners and existing employees.
Last updated
Salary Structures are salary definitions that can be used to assign salary details to new joiners and existing employees.
Last updated
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.
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
Salary Component: Select Basic Salary
Order No: Enter 1
Conditional Definitions:
If Gross Salary is more than 0, then calculate 50% of Gross Salary, keep between 15000 to 22000
Salary Component: Select House Rent Allowance
Order No: Enter 2
Conditional Definitions:
If Gross Salary is more than 0, then calculate 50% of Basic Salary, keep between 0 to 11000
Salary Component: Select Bonus
Order No: Enter 3
Conditional Definitions:
If Basic Salary is more than 14999, then calculate 8.33% of Basic Salary, keep between 0 to 0
Salary Component: Select Other Allowance
Order No: Enter 4
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.
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)
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.
