The Monthly Remuneration feature in Keka is here to simplify payroll for contract-based or non-annual roles. With Monthly Remuneration, you can manage payroll more accurately, especially for employees on fixed-term projects or internships. Here’s a step-by-step guide to get started:
Enable Monthly Remuneration in Pay Group Settings
Go to the Payroll (1) section on your Keka dashboard, choose Settings (2) and in the Pay Group (3) tab choose the paygroup you wish to configure for monthly remuneration and click on the gear icon (4).
Once you have configured the settings, navigate to the Pay Schedule (1) tab, click on the three dots (2), and then select the option to update your settings (3).
After that in the next screen you will see a section Select the remuneration types that are applicable in your organization go ahead and select the monthly renumeration in the options.
Once you have selected the monthly remuneration option, proceed to the Salary Structure tab to configure the monthly salary structures accordingly.
On the Create Monthly Salary Structure window, you can give a relevant Name and Description (1) for the salary structure, Configure PF, ESI and TDS for this structure (2), and add a new component by clicking on +Add Component. (3).
You can also click the Edit (4) icon to modify the pre-defined formula for a salary component.
On clicking the Edit icon, Update Calculation- Basic overlay window will appear. You can select any salary component you want to use in the formula by selecting it from the list and it will be automatically inserted. Now, just click on Update to save the new formula.
If an absolute value is given instead of a formula, that should be the annual value of the component.
While putting in the formula for a component, make sure that you're using the 'Standard JavaScript' notation for formula expressions. For example, use the asterisk symbol ( * ) for multiplication and forward slash ( / ) for division. Also, all the names of the components used in the formula should be enclosed in square brackets like [CTC], and only outside this the curved bracket should be used for arithmetic operations. Another thing to keep in mind while putting in the formulas is that you should follow the order of operations, which is also known as BODMAS (Brackets, Orders, Division, Multiplication, Addition, and Subtraction).
Assign Monthly Remuneration to Employees
When adding a new employee, in the Compensation section and select 'per month' as the remuneration type for that employee.
With Monthly Remuneration, you can offer clarity and simplicity in managing contract-based payroll. The monthly pay setup is ideal for consistent compensation without the need to calculate an annual figure for short-term roles.