A salary structure is a breakdown of an employee's pay into different Components, such as basic salary, allowances, and deductions. Changing the salary structure can affect the employee's taxes and benefits. With StrideERP, you can set up the earnings and deductions, payroll frequency, and payment method for a salary structure.

After you have saved and submitted all the necessary details, you have two options to assign the Salary Structure to an Employee. You can either use the 'Assign Salary Structure button' button or create a new Salary Structure Assignment from the dashboard.

You also have the option to assign the Salary Structure you created to multiple employees based on their Employee Grade or Department by using the 'Assign to Employees' button. You can also create Salary Slips directly from the dashboard.

1. Pre-requisites

Before you create a Salary Structure, it is advisable you have the following:

• Salary Component

2. How to create a Salary Structure

To access Salary Structure, go to:

People > Payroll > Salary Structure

3. Features

3.1 Leave Encashment Amount Per Day and Max Benefits (Amount)

In case there are encashable leaves for an Employee, you can define the leave encashment amount per day in this field for this particular Salary Structure. Based on the 'Earning Component' set in the encashed Leave Type and the amount per day, the value for the Salary component will be calculated accordingly in the Salary Slip.

In this field, the Max Benefits Amount for the Salary Structure can be specified. If this field is filled, make sure the Salary Structure has a Salary Component with the "Is Flexible Benefits" checked, against which this amount will be paid.

3.2 Salary Structure for Salary based on Timesheets

In StrideERP you can also define the Salary Structure for Salary Slip based on Timesheet, which allows the Company to pay there Employee as per working hours.

3.3 Earnings and Deductions

Earnings specify the Salary Components that are earned by an Employee. These components typically include basic, allowances, bonuses, and incentives that are added to the employee's Total Salary.

On the other hand, Deductions specify the Salary Components that are deducted from the employee's Total Salary. These typically include the GOSI

Note: Only Salary Components set as 'Earnings' will be shown in the Earnings table and components set as 'Deductions' will be shown in the Deductions table.

To create Earnings and Deductions, select the Salary Component in the Component column. Enter the Formula/Condition if not previously specified while creating the Salary Component. Additionally, you can also enter a pre-defined amount in the Amount column.

Note: Make sure to click on the downward arrow and enable the 'Amount based on formula' checkbox in case the Salary Component is calculated using a formula.

3.4 Account

In this section, the Mode of Payment and the Payment Account that is used to pay the salary can be specified.