How to add salary components in a pay group?

How to Add a New Salary Component in Keka Payroll

Organizations often define a salary structure with multiple components, such as Basic, Dearness Allowance (DA), HRA, LTA, and others. Occasionally, employers may introduce new components or remove certain components from the structure, such as food coupons, if they are no longer offered.

When adding a new salary component in your organization, follow these steps to create and assign it to the appropriate salary structure on the Keka HR portal.

Creating a New Salary Component

In Keka, salary components are divided into two categories:

1. Recurring Components – Paid out regularly (e.g., monthly salary).

2. Ad-hoc Components – Paid out occasionally (e.g., bonuses, one-time payments).

Adding a Recurring Salary Component

To add a recurring salary component:

1. Go to Payroll ➔ Settings ➔ Components ➔ Recurring Components.

2. Click on Add New Component to begin the process.

   

3. In the Add New Salary Component window, fill in the following:

   • Component Type: Select the type.

   • Component Name: Enter the name.

   • Maximum Limit Per Annum: Set the limit.

   • Description: Provide a description.

   • Tax Exempt: Choose whether the component is tax exempt.

4. Once all details are entered, click Add Component to finalize.

   

Adding an Ad-hoc Salary Component

To add an ad-hoc salary component:

1. Go to Payroll ➔ Settings ➔ Components ➔ Ad-hoc Components.

   

2. Click the arrow next to Add Ad-hoc Allowances and select one of the following:

   • Ad-hoc Allowance

   • Ad-hoc Deduction

   • Bonus

     

3. Enter the necessary details:

   • Ad-hoc Allowance: Add a Name and Description; choose if tax exempt.

   • Ad-hoc Deduction: Add a Name, Description, and choose whether it affects the gross salary.

   • Bonus: Add a Name and Description.

4. Click the appropriate button (Add Allowance, Add Deduction, or Add Bonus) to complete the process.

Adding the Component to a Pay Group

Now that you’ve created the salary components, you need to assign them to the appropriate pay groups.

1. Go to Payroll ➔ Settings ➔ Pay Groups.

2. Select the pay group where you want the new component added and click Configure.

   

3. In the Salary Components tab:

   • For Recurring Components, click Add Recurring Component.

   • For Ad-hoc Components, click Add Ad-hoc Components.

4. From the list of available components, select the newly created component and click Add.

Adding the Component to Salary Structures

Finally, you need to add the new salary component to the salary structures for employee pay.

1. Go to Payroll ➔ Settings ➔ Pay Groups.

2. Select the pay group to which you want the new component added and click Configure.

3. In the Salary Structures tab, choose the salary structure and click Edit Salary Structure.

   

4. In the Edit Salary Structure window, click Add Components.

   

5. In the Add Salary Component window, select the newly added component and click Add Component.

6. Repeat the process for other salary structures as needed.