Help /

Manage Salary Structure

Manage Salary Structure

Define salary computation templates that combine pay elements into a complete salary package. Salary structures link pay elements to specific job grades or positions and can override element-level formulas.

How It Works

  1. Create a salary structure (e.g., "Standard Employee", "Senior Manager")
  2. Add pay elements (earnings and deductions) to the structure
  3. Optionally override the default formula for each element
  4. Assign the structure to employees via their job position/grade
  5. The payroll uses the structure to calculate each payslip

Fields

  • Structure Name - Template name (e.g., "Grade A Structure")
  • Pay Element - Select from defined Pay Elements
  • Amount - Override the default amount for this structure
  • Formula Override - Override the pay element default formula for this structure (50 chars displayed, max 255)

Formula Override

Each pay element in a salary structure can have its own Formula Override. This overrides the default formula defined on the Pay Element itself.

Example: The "House Rent Allowance" pay element has a default formula of BASIC * 0.10. In the "Senior Manager" salary structure, you can override it to BASIC * 0.15. In the "Director" structure, you might set BASIC * 0.20.

This allows different pay grades/positions to have different calculation rules for the same pay element without creating duplicate elements.

Formula Priority

When calculating a payslip, the system resolves formulas in this order (highest priority first):

  1. Employee Salary Override - Personal formula set per employee (see Manage Employees)
  2. Salary Structure Formula - Override set here per structure
  3. Pay Element Default - The formula defined on the pay element itself

Tips

  • You don't need to set a formula override if the pay element default formula is correct for this structure
  • The Formula Override field is optional - leave it blank to use the pay element default
  • Only elements with Amount Type = "Formula" use the formula field; other amount types use the Amount field
  • For the full list of formula variables and syntax, see Payroll Formula System

See Also