How to change the salary structure of an employee

Modified on Wed, 12 Apr, 2023 at 4:18 PM

Each employee in an organization has a salary structure assigned to them, which is used to calculate the component value for their salary. Depending on the organization's needs, different salary structures may be configured with different components or formulas/values. For example, an intern may have a salary structure with only a stipend component, while a full-time employee will have a different structure that suits their job position. In Keka, employers can easily change an employee's salary structure as needed, such as when converting an intern to a full-time employee. 


Let's see how to do this on Keka. 

Begin by searching for the employee on the search bar and opening the employee profile (1). Go to the Finances (2) tab. Click on Pay (3) and then, on Salary (4). Now, click on Revise Salary (5).  


 

The Revise Salary window will now pop up. Here, you can view the  Current Salary and the date of the Previous Revision. 


Under New salary (INR) (1), add the new annual pay. Add the date the revised salary will be effective from (2) and choose a salary structure (3) from the dropdown.




Note: If the employee's salary is Rs. 2,50,000/- and they have been given an increment of Rs. 1,00,000/-, under New salary (INR), you should enter 3,50,000. Entering only the increment amount will not be enough here.

 

Once you enter all the required details, you will be able to View Salary breakup as per different formulas. Now, click on Revise. 


If you enter an amount, the percentage (%) field will automatically calculate the value. And similarly, if you are adding a percentage value, the New salary amount will be calculated automatically.


If you want to change the salary structure without revising the salary, give the percentage change value as zero.



After clicking Revise you can check the employee's profile again. Go to Salary Timeline and you will be able to see the new salary under Salary Revision.  

 

Hope that helps you update the salary structure of any employee in your organization. You may also like to check out the article on How to change the salary structure of employees in bulk.


If you have more queries, please refer to the other help documents or do contact us.


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