Why is the salary breakup of an employee displaying one or more components but not all the components in the salary structure?

In every organization, employees are assigned specific salary structures that represent the value of different salary components. These structures can vary based on the organization's requirements, with different components or formulas/values.

In this article, we are going to see why there may be only one or more components displayed in the salary break up of an employee even though the salary structure has multiple components.

1) CTC of the employee

When the CTC of an employee is not able to accommodate all the components in the salary structure, it divides the CTC amount into the components it can and will not include other components while creating the salary structure.

For example, consider the salary structure that is in the image below. It has a variety of components added.

Now say an employee has 300000 CTC and this amount is not sufficient to accommodate all the components. So in the case the CTC amount is divided into components in which it can and will not include the other components. You can check the screenshot below for the breakup.

You can see that if we assign this structure for an employee with 300000 CTC, then Dearness Allowance, Travel Reimbursement and Medical Allowance are not included in the salary structure.

In this case, we either need to change the Salary Structure or change the calculations for the salary structure so that it can be accommodated.

2) Override

Now we consider the salary amount is sufficient for the salary structure however there is an override for a component that may have been added in an error or was added previously because of which the salary structure is incorrect.

For example, taking the same structure as above and considering the CTC to be 700000 but there is an override of 700000 for Basic. In this case, you can only see Basic in the salary structure and no other component will be ca 

In this case, we need to remove the override or the override to an amount that will allow other components also to be calculated.

Hope it is now clear on why all the components present in the salary structure may not reflect in the employees salary breakup. Need more help? You can refer to the other articles available or contact us!