How to create/edit a new/custom salary structure?

A salary structure defines how an employee’s pay is divided into different components. Employees like interns and consultants may have different salary structures, with consultants receiving consultation fees instead of basic pay, HRA, and PF. Keka allows you to create and assign different salary structures based on employee needs.

Steps to Create a Custom Salary Structure:

1. Click on Payroll ➔ Settings ➔ Pay Groups.

2. If you have multiple pay groups, select the relevant one and click the Configure icon under Actions.

   

3. In the next window, go to Salary Structures ➔ Custom Salary.

4. Click on Create Custom Salary Structure to create a new structure. To edit an existing one, click the Edit icon under Actions.

   

Configuring Salary Components:

1. In the Create Custom Salary Structure window, give a Name and Description to the salary structure.

2. Configure PF, ESI, and TDS settings for the structure.

3. Click +Add Component to add new components.

4. To modify a component's formula, click the Edit icon.

   

Editing Component Formulas:

1. When you click the Edit icon, the Update Calculation window will appear.

2. Choose the salary component from the list to insert it into the formula.

3. Click Update to save the changes.

   

Formula Notation Guidelines:

1. Use Standard JavaScript notation:

   • Use * for multiplication and / for division.

   • Enclose component names in square brackets (e.g., [CTC]).

   • Use curved brackets for arithmetic operations.

2. Follow the BODMAS rule (Brackets, Orders, Division, Multiplication, Addition, Subtraction) when creating formulas.

Statutory Components:

• If you disable statutory components, they will not be visible to employees whose profiles have these components enabled.