Salary Structure Overview

• This screen will allow users to view and change annual amounts of all salary components added in gross/net formula which are mapped to any active staff.
• Amounts of all the salary components mapped to staff are editable here before any of the salary registers are frozen of the respective staff member.
• Salary structure of an employee can be edited and saved multiple times before their individual salary registers are frozen.
• Annual net salary is also displayed as a column which is calculated according to the formula [Gross Salary – Deductions].
• Direct manual edit of Annual Net Salary is not allowed and it can never be a negative number.
• Any change done in monthly salary register won’t be reflected in salary structure.
• Changes done in the salary structure of any staff member (which is only possible before salary register freezing) will be reflected in all the salary registers of the respective staff member.
• The effective date for a new employee can be any date of the month, while for all existing staff members it can only be 1st of any month.
• If a staff member is deactivated from the staff module
  1. His/her records will also be removed from the payroll module. If re-activated, the structure will be seen according to what it was before deactivation and registers can’t be seen or generated for the months when the staff remain deactivated.
  2. However, if the structure was never created for staff and he/she was deactivated, upon re-activation, the structure can be given an effective date as any date irrespective of whether he was deactivated or not.

While calculating amounts of salary components

• If an Allowance 1 is dependent on another Allowance 2, such that allowance 2 is not mapped to particular staff, in such cases, while calculating the amount for allowance 1, the value of allowance 2 will be taken as 0 in the formula.
• The same will be followed if Deduction 1 is dependent on another allowance/deduction which is not mapped to the staff member.
• If the allowance/deduction value is calculating to be negative in any case, due to the formula discrepancies, such a component will take value ‘0’ in the salary structure.

Dependency on Salary Components & General Settings

• If the logic for a salary component is changed, it’s value in salary structure would always be revised according to the new logic and any manual edits done in existing value will be discarded.
• Change in the logic of a salary component would also affect the values of other dependent components, also discarding their already existing values in salary structure.
• If a user creates a new salary component
  1. It will be reflected in salary structure only when it is added in gross/net definition in the general settings.
  2. However the addition can only be done when none of the salary registers of staff mapped to this new component is in the frozen state.
  3. If net salary becomes negative due to this addition, required changes in the salary structure will have to be done manually done by the user in order to freeze registers of such staff members.
• If a user removes a salary component from gross/net definition,
  1. It will be removed from the salary structure of all the mapped employees and the values of dependent components on this removed component will also be modified accordingly, discarding any manual edits made.
  2. If net salary becomes negative due to this removal, required changes in the salary structure will have to be done manually by the user in order to view registers of such staff.
• If gross is not equal to the sum of all allowances, an error would be thrown saying the same during the structure bulk upload.
• If the basic salary of staff doesn’t belong to the assigned payband, such salary structures can’t be created or such edits can’t be modified.
• Register would only be shown/modified for staff members whose salary structures are successfully created or modified.

Dependency on Salary Components & General Settings

• If a payband is deleted, salary structure of all the employees who were allocated to this payband would also be deleted and can’t be re-made before allocating them to some other payband.
• If a payband is changed for certain staff, the salary structure would be deleted and needs to be re-made all over again.
• If the range of a payband is changed
  1. If already existing Basic salary of staff still belongs to the new range of payband, there would be no changes in salary structure.
  2. If already existing Basic salary of staff doesn’t belong to the new range of payband, salary structure of such employees would be deleted and have to be re-created again.

Dependency on Salary Components & General Settings

• Salary structure can be created/modified/viewed by using excel bulk upload option.
• The user can choose to download a template for either all staff members or selected ones.
• Two kinds of the template are present in excel bulk upload
  1. ‘Base Component Template’
     1. All salary components which have their logic as ‘Fixed Amount’ will be displayed when this excel is downloaded.
     2. Basic Salary is downloaded with value ‘0’ until changed by the user, as basic salary amounts have to be defined in this excel manually by the user.
     3. User can make changes to other components in this template as well, according to which values in ‘All Component’ values will change for all the dependent components.
     4. Values of the components in this excel will also be updated if values of the same components are updated directly from ‘All Components’ excel.
  2. ‘All Component Template’
     1. When this template is downloaded for the first time, this excel contains all the salary components included by the user in general settings.
     2. ‘All components’ template would be auto-populated according to the values given by the user in the base components sheet or pre-filled in the base component sheet by the system.
     3. If a user doesn’t upload the ‘Base Component’ excel, ‘All Component’ excel will have values auto-filled according to the actual logic defined in salary component screen.
     4. If a user doesn’t upload or change the value of basic salary from ‘0’ in ‘Base Component’ excel, the Basic salary would have value ‘0’ in ‘All component’ excel and all the other components dependent on basic salary would also be calculated taking basic salary value as ‘0’.
• Effective Date:
  1. As soon as the structure is created by uploading any of the above-mentioned templates, it will be effective or the registers of these salary structures can be seen according to the effective date provided by the user.
  2. When either of the templates is downloaded for the first time, the effective date would be given as the current date, if the structure hasn’t been created until that point. However, the user can change this date to 1st of any upcoming or previous months.
  3. If the effective date uploaded by the user is of any of the previous months, registers would still be formed from the 1st of the current month.
• If any component field is uploaded as blank in any of the excels
  1. If mandatory salary components are uploaded as blank in any of the templates, the system would automatically take their value ‘0’.
  2. If optional salary components which are already mapped to a certain employee are uploaded as blank, the system would automatically take their value ‘0’.
  3. If optional salary components which are not mapped to a certain employee are uploaded as blank, such A/Ds would still remain unmapped to staff. However, if some value is given for such components, they will then be mapped to the staff and the amount will be taken as mentioned in excel upload.
• If values of components which are included in ‘Base Components’ excel are changed in ‘All Components’ excel, the values filled in all components excel would be taken as final and net salary would be calculated accordingly. Also, values would be updated in ‘Base Components’ excel accordingly.
• If the values in ‘Base component’ excel is again uploaded with different values, the values of such component and their dependent ones will be updated in ‘All Components’ excel as well.
• Any changes done to the value of any component in ‘All Components’ template won’t have any effect on any of the dependent components and will just be taken as a manual override on the initial value.
• Salary Register will be displayed according to the latest values stored in ‘All Components’ excel.
• If any changes are made in the pre-populated staff personal details in any of the excels, such a record won’t be validated and uploaded by the system.
• Excel upload will also be validated for
  1. Non-negative net salary rule and salary structure will be uploaded for staff for whom this condition is met.
  2. Basic salary entered should always lie in the range of payband allocated to staff.
  3. Gross entered should be equal to the sum of Basic Salary + Allowances. If nothing is entered in the gross column it will be automatically taken as the sum of all allowances.
  4. Salary components values uploaded should be a non-negative number. Deductions will be automatically taken as negative by the system during the calculation of net salary.
  5. User can download the information of staff for which the excel wasn’t successfully uploaded due to discrepancies in data from ‘Excel Upload History’ screen.