Creating Salary Components, please follow the steps below

To create a Salary components, navigate to Admin > Job > Salary Components, Click on “Add” and fill in the necessary fields using the information below

  • Component Name: This is the unique name of the salary component
  • Country: This specifies which country the component applies to. If this is set to “All” then it will apply to all countries otherwise it only applies to the selected country
  • Type: This specifies the component type as detailed below
    • Income: This component will increase the employee’s pay package
    • Deduction: This component will decrease the employee’s pay package
    • Calculation: This component will derive its value from the summation of selected calculation components. Use this component type to calculate sub totals where required. Note: Calculations do not directly increase or decrease the employee’s pay package and are not shown on the
    • Progressive Tax: This component is used for calculating income tax and other
    • Tax Allowance: This component is used for tax allowances / deductions which can be used in calculating income tax. Note: Tax allowances do not directly increase or decrease an employee’s pay package but instead used to decrease an employee’s taxable
  • Cost to Company: This specifies whether a deduction is partly or wholly paid for by the company
  • Company Percentage: This specifies the portion of the deduction amount that is payable by the company
  • Value Type: This specifies the method by which the component derives its value
    • Amount: The value of the component will be typed in
    • Percentage: The value of the component will be derived by applying the specified percentage to the selected base component’s value
  • Base Component: This is an existing component to which a specified percentage is applied to derive the value of a “Percentage” type component or whose value is added to derive the value of a “Calculation” type
  • Calculation Components: This contains the components whose values will be summed up to derive the value of a “Calculation” type
  • Add Component Button: Adds the currently selected base component to the calculation components
  • Remove Component Button: Removes the currently selected calculation component from the
  • Tax Band Type: This specifies the current band position when creating a progressive tax component
    • First: Use this for the very first tax band
    • Next: Use this for all tax bands except the first
    • Above: Use this after all “Next” bands have been entered
  • Band Value: This is the amount to be taxed in the current band
  • Band Percentage: This the percentage to be applied to the current band
  • Add Tax Band Button: Adds the current tax band to the list of tax bands
  • Clear Tax Bands: Clears all tax bands on the list
  • Save Button: Click this button to save
  • Cancel Button: Click this button to cancel
  • Reset Defaults for all Employees: Click this button to reset the value for this component to the set default across all employees

 

BizsoftHRM Administrator