Employee salaries are typically divided into multiple components. Some of these components are recurring or added to the salary every month. Some of these are also ad-hoc components that are usually one-off or not regularly included in the salary structures.
TABLE OF CONTENTS
- Adding a salary component to the global repository
- Adding a recurring salary component
- Adding an Ad-hoc salary component
- Adding the component to a pay group
- Configuring a salary component in a pay group
- Deleting a component from the pay group
- Editing or deleting a salary component in the global repository
Keka allows you to create and add custom salary components. In this document, we will look at how you can create new salary components, make it available for specific pay groups, and more.
The process
In the Keka HR Portal, salary components have a specific flow to them. Salary components both ad-hoc and recurring should be added to the global repository of salary components first and then added to the pay group. Finally, it can be assigned to the various salary structures you are creating for each pay group.
Let’s now see how you can add or edit a salary component in the global repository and how it can be added to the pay group.
There are 2 types of salary components in Keka.
Recurring components: These are components paid to the employee in each pay cycle, irrespective of employee performance or any other criteria. These are components such as basic, HRA, Dearness Allowance etc. These can be taxable, or tax exempted up to a limit as defined by the Income Tax regulations.
Some components that are common and mandatory for all salary structures will already be defined by the system. Such components will not be open to modification and the same will be indicated with the help of lock icons.
Ad–hoc components: These are salary components added to or deducted from the employee’s salary as and when needed. These include components like Joining Bonuses, Salary Advance Recovery, Referral bonuses, Asset damage recovery, etc.
Let’s see how you can add recurring and ad-hoc components.
To add a recurring salary component to a pay group, navigate to Payroll (1)>> Settings (2).
Go to the Components (3) tab and select Recurring Components (4)