Salary Structures & Earnings/Deductions

Updated 2 June 2026

Overview

Why it matters: Gross-to-net pay involves many moving parts (allowances, PF, loans, bonuses). Encoding them as structured lines with formulas and reusable groups stops one-off spreadsheet errors and makes raises or package changes repeatable for whole teams.

What this covers: A salary entry per employee holds base pay, effective dates, and lines for each earning or deduction—fixed amount, percentage of base, or formula referencing other lines by code. Earnings/Deductions Groups act as templates to load standard packages (e.g. HRA, statutory deductions) in one click.

Overlapping active salary ranges for the same person are blocked so the system never applies two conflicting packages at once.

How It Works

Choose an Earnings/Deductions Group to auto-fill lines (HRA, PF, etc.). Codes on each line let formulas refer to other lines. Overlaps in salary date ranges for the same employee are blocked.

Step-by-Step Guide

Fields Table

Field labels explained

Salary Entry ID

System reference for this salary package version; cited in audits and support.

Employee

Who this pay package applies to; one active window per employee at a time.

Basic Salary

Core fixed component before variable earnings—often the anchor for percentages.

Gross Salary

Total cash compensation before statutory deductions and tax (definition may follow your policy).

Hourly Rate / Overtime Pay

Derived or entered rates used when converting hours to money for normal and OT time.

Effective Start Date / Effective Until

alidity window; new raises typically mean a new line or updated end date.

Work Type

May align the entry with full-time/part-time rules from the employee or masters.

Earnings/Deductions Group

Template that loads a standard set of lines (HRA, PF, etc.) in one action.

Earning/Deduction Type

Whether the line is fixed amount, percent of base, or computed from a Formula.

Code

Stable identifier other lines reference in formulas—do not rename casually.

Formula

Expression referencing other codes (e.g. percentage of “BASIC”) evaluated at payroll time.

Sequence

Calculation order when one line depends on another’s result.

Is Active?

Excludes a line from calculation without deleting historical data.

Tips

Common Mistakes

Salary Structures & Earnings/Deductions