Setting up salary structures and allowances

A salary slip is built from a few parts: the basic salary on the staff record, recurring allowances and deductions you assign to each person, and any attendance-based deductions you switch on. Set these up once and every monthly payroll picks them up.

Before you start

• Staff records must exist, each with a Basic Salary.
• You need permission for configurations and for payroll allowances and deductions. Payroll settings need their own permission.
• Talk to your accountant or a local adviser before setting any tax, pension or social security deductions. Rules differ by country and change over time.

If you do not see this option, it may not be included in your plan or your role may not have permission; ask your administrator.

Steps

1. Add pay scales (optional)

1. Go to Configurations > Pay Scales and click Add Pay Scale.
2. Enter a Name and the Basic Salary for that scale, then save.

2. Create allowance and deduction types

1. Go to Configurations > Allowances and click Add Allowance.
2. Enter an Allowance code and Allowance name, for example HRA and House Rent.
3. Tick Taxable if this allowance should count toward the income tax base. Leave it clear if not. Save.
4. Repeat under Configurations > Deductions for regular deductions such as a staff welfare fund.

3. Assign them to staff

1. Go to Payroll > Allowances and click Assign allowance to staff.
2. Choose the allowance under Select Allowance, the person under Select Staff Member, and enter the Amount. Save.
3. Do the same for deductions under Payroll > Deductions with Assign Deduction to Staff.

4. Configure attendance-based deductions

1. Go to Payroll > Settings and open the Salary Deductions tab.
2. Switch on the ones you use: Enable Absent Deduction, Enable Leave Deduction, Enable Late Arrival Deduction or Enable Short Leave Deduction.
3. For each, choose a Deduction Type: Deduct Fixed Amount or Per Day Salary Percentage, and enter the value. For leave, late arrivals and short leaves you can also set how many are allowed each month before a deduction applies.
4. Save.

Good to know

• Assigned amounts repeat. An allowance or deduction assigned to a person is added to every monthly payroll you create until you change or remove it. For a one-off bonus, add it to that month's slip instead (see below).
• One-off items. On Payroll > Pay Salary, find the person and use Add Allowances / Deductions to add an allowance, deduction, bonus or wage to a single slip.
• Tax and statutory items are yours to configure. Payroll > Settings also has sections for financial years, tax slabs and other statutory deductions, and can load a starting preset for some countries. These are tools, not advice. Scolvia does not certify that any setup meets your country's tax or pension law. Check rates, thresholds and rules with a local adviser and review them each year.
• Attendance must be marked. Absent, leave and late deductions are based on the staff attendance you record for the month. Mark attendance before you create payroll.

Common questions

Can I give the same allowance different amounts to different people?

Yes. The type is defined once, and the amount is set per person when you assign it.

For an overview, see Payroll.