Employee Salary

This guide walks you through managing employee salaries in the HRMS system — from setting up salary components to updating increments and generating reports.

What You’ll Learn

By the end of this guide, you’ll know how to:

• View employee salaries details
• Set up new salaries with components
• Update salary structures and increments
• Track salary history
• Generate reports for individuals and departments

Getting Started

Prerequisites

Make sure you have:

• HR Admin / Manager Access – to manage salaries
• Employee Record – employee must exist in the system
• Salary Components – allowances, deductions configured
• Salary Groups – predefined salary groups

What You Can Manage

• Basic Salary – fixed base pay
• Allowances – DA, HRA, transport, medical, etc.
• Deductions – PF, ESI, TDS, professional tax
• Bonuses & Incentives – performance-based payouts
• Overtime – extra working hours
• Salary History – all changes over time

Accessing Employee Salary

Step 1: Navigate to Employee Salary

• Go to Payroll in the main menu
• Select Employee Salaries
• View the salary list of all employees
• Use the Search bar to find specific employees

Step 2: Interface Overview

On the Employee Salaries page, you’ll see:

• Employee List – all employees with salary details
• Filters – department, status, designation
• Action Buttons – view, edit, or manage salaries
• Summary Section – Salary Statistics

Viewing Employee Salary

• Search and select an employee
• Click on the employee’s name
• View Salary Breakdown (basic pay, allowances, deductions)
• Review Calculation details & effective dates

Setting Up a New Employee Salary

Step 1: Create New Salary

• Click Add Salary
• Select the employee
• Choose a Salary Group
• Add salary components

Step 2: Enter Basic Information

• Salary Group
• Effective Date
• Currency & Payment Frequency

Step 3: Add Salary Components

• Basic Salary – fixed base pay
• Allowances – DA, HRA, medical, transport, etc.
• Deductions – PF, ESI, TDS, professional tax

Each component allows you to set:

• Fixed Amount / %
• Calculation Base
• Effective Date

Updating Employee Salary

Edit Existing Salary

• Search employee → Click Edit
• Update salary values or components
• Click Save

Process Increments

• Types: Annual, Promotion, Performance, Market Adjustment
• Enter: New salary amount + Effective date + Reason
• Save the increment

Update Specific Components

• Select a component
• Modify value
• Set effective date
• Save changes

Salary History

• Go to Employee Salaries → History
• View all past salary changes
• Export salary history report

Includes:

• Change Date
• Change Type
• Old vs New values
• Updated By
• Reason

Salary Reports

Individual Reports

• Salary Slip
• Component Breakdown
• Tax Summary
• Salary History

Bulk Reports

• Salary by Department
• Salary by Designation
• Salary Range Analysis
• Increment Report

Salary Groups

Salary Groups define structured pay scales for different employee categories. Instead of configuring salary components for each employee, you group employees under a common structure — making payroll consistent, accurate, and easier to manage.

What You’ll Learn

By the end of this guide, you’ll be able to:

• Create and configure salary groups
• Assign salary components to groups
• Apply groups to employees (individually or in bulk)
• Manage group settings and rules
• Generate group-level reports

Getting Started

Prerequisites

You’ll need:

• HR Admin Access → permission to create and edit salary groups
• Salary Components → must be set up first
• Employee Data → employees ready to be assigned
• Planned Group Structure → outline of departments, designations, or salary levels

What Are Salary Groups?

Salary group help you:

• Define Components – Specify which earnings and deductions apply
• Set Values – Fixed amounts, percentages, or formulas
• Categorize Employees – Group by department, designation, or contract type
• Standardize Payroll – Ensure consistent salary structures
• Simplify Updates – Update one group instead of multiple employee records

Creating a Salary Group

Step 1: Access Salary Groups

• Go to Payroll in the main menu
• Click Salary Groups
• View the existing list
• Select Add Group

Step 2: Enter Basic Information

Fill in:

• Group Name (required)
• Group Code (unique identifier)
• Description (optional but recommended)
• Group Type → Standard, Contract, Intern, or Custom

Step 3: Configure Applicability

Choose where this group applies:

• Departments (e.g., Finance, IT)
• Designations (e.g., Manager, Intern)
• Employee Levels (e.g., L1, L2)
• Salary Ranges (if applicable)

Step 4: Assign Salary Components

• Earnings → Select, set values, apply calculation rules, and define priority
• Deductions → Select, set values, apply calculation rules, and define priority

Step 5: Advanced Settings

• Calculation → Salary method, rounding rules, tax calculation, allowance
• Display → Show in payslip, order of components, reporting inclusion

Tip: Test the group with one employee before rolling it out widely.

Assigning Employees to Groups

Individual Assignment

• Open Employee Assignment
• Search and select employees
• Choose the correct Salary Group
• Set Effective Date
• Save

Bulk Assignment

• Select multiple employees
• Use Bulk Assignment
• Choose the salary group and effective date
• Confirm assignment

Warning: Reassigning an employee to a new group overrides their previous salary structure.

Configuring Group Components

• Fixed Amount → Set value, currency, and effective date
• Percentage-based → Enter % of base component (e.g., 10% of Basic)
• Formula-based → Add formula, test syntax, add variables and conditions

Group Rules

• Min/Max Salary → Boundaries for salaries in the group
• Increment Rules → Define how raises are applied
• Promotion Rules → Rules for moving between groups

Managing Salary Groups

• Edit → Update group details or components
• Copy → Duplicate an existing group, then adjust

Delete → Remove group (only if no employees are assigned)

Getting Started

By the end, you’ll be able to:

• View all existing salary components
• Create and configure new components
• Edit or update existing ones
• Manage earnings, deductions, and formulas
• Apply rules to employees or departments
• Generate component usage reports

Prerequisites

To manage salary components, you’ll need:

• HR Admin Access – Permission to create/edit payroll components
• Payroll Knowledge – Understanding of salary structure and compliance
• Component Details – Clear info about the component you’re adding
• Calculation Rules – Whether it’s fixed, percentage-based, or formula-driven

Types of Salary Components

• Earnings – Add to employee salary (e.g., Basic, HRA, Bonus)
• Deductions – Reduce salary (e.g., PF, ESI, TDS)
• Fixed – A fixed amount (e.g., ₹500 transport allowance)
• Variable – A percentage of salary (e.g., 10% HRA)
• Formula-based – Calculated using custom rules

Accessing Salary Components

• Go to Payroll → from the main menu
• Select Salary Components → under Payroll submenu
• Browse List → view all existing earnings and deductions
• Use Tools → filter, search, or take actions (edit, delete, configure)

Tip: Use the search bar if you have a long list of components.

Creating a New Component

1. Click Add Component
2. Fill in Component Details:
   • Name, Code, Type (Earning/Deduction), and Category
   • Description (optional but recommended)
3. Configure Calculation Settings:
   • Fixed Amount – Enter default value
   • Percentage – Select base component (e.g., Basic Salary)
   • Formula – Write or paste a calculation formula
4. (Optional) Add Applicability Rules:
   • Apply to employee groups, departments, designations, or salary ranges
5. Set Display Preferences:
   • Show in payslip, reports, and order on printed documents
6. Click Save

Your new component is now active and ready for payroll processing.

Editing an Existing Component

• Search or filter the component list
• Open the component and click Edit
• Update fields like Name, Description, Default Value, or Formula
• Review & Save changes

Warning: Changes to active components will affect payroll and reports immediately. Always review before saving.

Common Component Categories

Earnings – Basic, DA, HRA, Medical Allowance, Overtime, Bonus, Incentives
Deductions – PF, ESI, Professional Tax, TDS, Loan Deductions, Insurance

Advanced Configuration

• Fixed Amount – Set value, currency, and effective date
• Percentage-based – Define percentage, base component, and rounding rules
• Formula-based – Write custom formulas, test syntax, add conditions

Always test your formula before applying it to employees.

Reports & Analysis

• Component Summary – Total, active, earning vs deduction
• Usage Reports – Which employees, departments, or salary ranges use it
• Cost Analysis – Financial impact of components

Troubleshooting

• Component not calculating? → Re-check formula syntax & variables
• Duplicate name error? → Use unique names/codes
• Validation failed? → Ensure required fields and value ranges are correct

Best Practices

• Use clear, descriptive names (e.g., “Transport Allowance – Fixed”)
• Keep consistent codes and categories
• Document complex formulas
• Review and update components periodically
• Backup before major changes

Payroll Dashboard

The Payroll Dashboard is your central hub for all payroll activities. It gives you a complete overview of payroll metrics, recent activities, quick actions, and important alerts—all in one place.

What You’ll Learn

By the end of this guide, you’ll know how to:

• Access and navigate the payroll dashboard
• Understand key dashboard widgets
• Run payroll processes and reports directly from the dashboard
• Track payroll trends and visualize data
• Customize widgets and filters to your needs
• Export or schedule payroll data

Accessing the Payroll Dashboard

Step 1: Open the Dashboard

• Log into HRMS with your credentials
• Click Payroll in the main navigation
• The Payroll Dashboard will open
• Explore available widgets and shortcuts

Note: What you see may vary based on your role and permissions.

Step 2: Layout Overview

The dashboard is divided into sections:

• Quick Stats – Key payroll metrics
• Recent Activity – Latest payroll changes
• Notifications – Alerts and deadlines
• Quick Actions – Common payroll tasks
• Charts & Graphs – Payroll trends and analytics

Dashboard Widgets

Quick Stats

Instant snapshot of payroll data:

• Total Employees in payroll
• Monthly Payroll amount
• Pending Approvals
• Payrolls Processed This Month
• Average Salary
• Total Tax Deductions

Recent Activity

Stay updated with:

• Recent payroll runs
• Salary updates
• Approval actions
• Data imports
• Generated reports

Notifications

Never miss important alerts:

• Pending approvals
• Upcoming payroll deadlines
• System errors or warnings
• Reminders and compliance alerts
• System maintenance notices

Quick Actions Panel

Common payroll tasks available in one click:

Payroll Processing

• Generate payroll
• Review pending payrolls
• Approve payrolls
• Lock completed payrolls

Employee Management

• Add employees
• Update or adjust salaries
• Perform bulk updates
• Import payroll data

Reports & Analytics

• Payroll reports
• Salary reports
• Tax reports
• Custom reports

Settings & Configuration

• General payroll settings
• Salary components
• Tax setup
• Payment methods

Charts & Visualizations

Salary Distribution

• Salary ranges
• Department-wise comparison
• Job title analysis
• Trends over time

Payroll Trends

• Monthly and yearly comparisons
• Seasonal variations
• Growth analysis

Tax Analysis

• Total tax deductions
• Tax by employee
• Compliance status
• Refund analysis

Dashboard Filters

Filter payroll data for better insights:

• Date Range → This month, last month, quarter, year, or custom range
• Department → View department-specific payroll data
• Employee Status → Filter by Active, Inactive, or All employees

Quick Access Features

• Recent Payrolls → Quick view of last 5 payroll runs with status and amount
• Pending Tasks → Approvals, reviews, action items, and deadlines
• Quick Reports → One-click monthly, department, tax, or salary reports

Customizing Your Dashboard

Manage Widgets

• Rearrange, add, or remove widgets
• Save your preferred layout

Configure Widgets

• Adjust data sources
• Set display preferences

Personal Preferences

• Notification settings
• Default dashboard view

Data Export Options

• Export Data → Choose Excel, PDF, or CSV
• Scheduled Reports → Automate report delivery by setting frequency, recipients, and content

Troubleshooting

Dashboard Not Loading

• Refresh page, check permissions, verify internet connection

Data Not Updating

• Clear cache, refresh page, confirm data sync

Widgets Missing

• Check permissions, verify role access

Slow Performance

• Try a different browser, clear cache, ensure stable internet

Best Practices

• Check dashboard regularly for updates and alerts
• Monitor payroll and tax trends for accuracy
• Customize the layout to fit your role
• Export or schedule reports for quick reviews
• Handle payroll data securely and responsibly