How to add/change the formula of a component in the salary structure

In any organization, the salary offered to employees is made up of different components, such as Basic pay, Dearness Allowance, HRA, LTA, and more. These components can either be defined as a fixed percentage of the employee's Gross/CTC or as a fixed value. On Keka, you can easily modify your salary structure to suit your needs. For example, you can add a new component that is 10% of the employee's monthly Basic pay by using formulae. By using formulae, you can determine the value of a component based on other components in the salary structure. To add or change a formula for a salary component, you first need to add the component to the salary structure.

To learn how to add a component to the salary structure, click here

How to change the formula of a component in the salary structure

On the Keka portal, navigate to the following location.

Payroll (1) >> Settings (2).

Go to the Pay Groups (3) tab and select the relevant pay group from the list if you have more than one configured. Click on the Configure (4) icon.

Go to the Salary Structure (5) tab and select Edit Salary Structure (6). 

Select the Salary Structure (1) you want to edit, select a  Component (2) from the left pane and then click on Edit Formula (3).

After clicking on the Edit Formula, the Update Value page would open. Here, you can change the formula of the component. You can use any of the Salary Components that have been defined and calculate the value of the component based on this. Once done, click Update. 

While putting in the formula for a component, make sure that you're using the 'Standard JavaScript' notation for formula expressions. For example, use the asterisk symbol ( * ) for multiplication and forward slash ( / ) for division. 

Also, all the names of the components used in the formula should be enclosed in square brackets like [CTC], and only outside this the curved bracket should be used for arithmetic operations. Another thing to keep in mind while putting in the formulas is that you should follow the order of operations, which is also known as BODMAS (Brackets, Orders, Division, Multiplication, Addition, and Subtraction).

Changing a component's formula in the middle of a month's payroll for a salary structure creates a new version of the salary structure for assigned employees in the salary timeline.

Hope this document was helpful to you. If you want more information, please feel free to contact us!