How to create/edit a new/custom salary structure

A salary structure is the way an employee's pay is broken down into different components. Depending on factors like job type, experience level, or department, different employees in an organization may have different salary structures. For instance, interns and consultants may have different structures, with consultants only receiving consultation fees rather than basic pay, HRA, and PF. 

With Keka, you can create and assign different salary structures to employees based on their specific needs.

A well-defined salary structure helps organizations monitor and control their expenses. Let's see how to create a Custom Salary Structure.

Click on Payroll. Under Settings, find Pay Groups. If you have multiple pay groups, choose the one you want to work on. Find the configure icon (4) against the pay group and click on it.

Clicking on the configure icon under Actions will take you to the next page. Here, go to Salary Structures (1) and click Custom Salary (2). A new custom salary structure can be created by clicking on Create Custom Salary Structure (3). 

You can edit a prevailing salary structure by clicking on the Edit icon under Actions.

On the Create Custom Salary Structure window, you can give a relevant Name and Description (1) for the salary structure, Configure PF, ESI and TDS for this structure (2), and add a new component by clicking on +Add Component. (3). 

You can also click the Edit (4) icon to modify the pre-defined formula for a salary component.

On clicking the Edit icon, Update Calculation- Basic overlay window will appear. You can select any salary component you want to use in the formula by selecting it from the list and it will be automatically inserted. Now, just click on Update to save the new formula.

If an absolute value is given instead of a formula, that should be the annual value of the component.

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).

If you disable the Statutory components in the salary structure it will not be visible to the employees if the statutory components are enabled on their profiles.

It is hoped that you found this document useful. In case of more queries, please refer to the other articles. If you want to, do not hesitate to call our product experts.