Menu path : Payroll > Employee Details > Salary Structure
Accessible to : Payroll Manager

To create salary for a new joiner -
1. Either map a template or map the employee to another employee whose salary structure is similar and can be copied
2. Enter the gross salary / cost to company amount
3. Click on "Create Salary Details" button

4. You will see the recommended structure which can be changed, there are three parts of the structure

Part 1 - Earnings table

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There are five categories across which earnings can be split
- Monthly taxable : this is taxable head paid every month
- Monthly tax free : tax free heads which will be paid on a monthly basis
- Annual taxable : taxable head paid only once a year, the month in which it is to be paid needs to be specified
- Annual tax free : tax free head
- Expense claim heads : these heads are available to the employee as a reimbursement claim

Further readings -
- To understand how salary components can be modeled refer to article on Components of a Salary Structure
- Refer to "Managing reimbursement claim category" to understand the setting up of expense heads and refer to Claiming salary reimbursements to understand how the claims work
- Refer to Flexible benefits overview to understand how the feature of allowing employees to decide their own salary works

To edit any head you can click on Edit button and will be navigated to a popup\

The option to select Flexible will be visible only if this feature is activated.

Part 2 - CTC components

This section is visible only if salary is modeled as CTC and the heads for CTC can be selected here. The heads which are visible here can be selected in Payroll setup.

There are five system defined CTC heads which when included will be automatically calculated
1. PF & EPS - Employer Cont or  2. PF, EPS & EDLI - Employer Cont. + Admn Chrgs - please select only one of them, the difference between the two is EDLI and Admin charges
3. ESI - Employer Cont. - this is 3.25% of the wages (w.e.f 01/07/2019)
4. LWF - Employer Cont. - varies by State
5. Gratuity - Employer Contribution - this is calculated as Wages / 12 x (15 / 26)

Part 3 - Deductions

Non statutory deductions can be updated in this table.

Once you have updated the details you can click on "Submit".

Note -
1. You cannot make changes to Special Pay, this is the balancing head and is auto calculated.
2. You can edit or delete heads and also recreate structure until payroll has not been run for the employee, once payroll has been run then "Salary update" process has to be followed to make any modifications in salary. But you can change the following without going through the increment process
- head attribute and activating Flexible option
- the month of payment for any head in Annual Category as long as the head has not been paid in the current financial year

Once a salary structure is created if approval process is configured then it will go for approval. Salary and claim details will be visible to the employee as per the table given below.