Salary Component Setup
Configure earnings, deductions, employer contributions, and statutory components for payroll calculation.
Salary components are the building blocks of every payroll calculation in HRORA. They must be configured before creating CTC templates or running payroll.
How to Add a Salary Component
- Go to Payroll → Salary Components
- Click Add Component
- Enter component code and name
- Select component type
- Add formula or fixed amount if required
- Set calculation order
- Click Save
Component Types
| Type | Description |
|---|---|
| Earning | Salary components paid to employee (Basic, HRA, LTA) |
| Deduction | Amounts deducted from employee salary (PF, PT, LWF) |
| Employer Contribution | Company-side costs (PF Employer, ESI Employer, Gratuity) |
| Statutory | Compliance-based components (PF, ESI, PT) |
| Variable Earning | Monthly variable additions (Bonus, Arrear, Incentive) |
| Variable Deduction | Monthly variable deductions (Leave Deduction, Advance Recovery) |
| Reimbursement | Expense reimbursement components |
Common Salary Components
Earnings
Basic, HRA, LTA, Conveyance Allowance, Medical Allowance, Telephone Allowance, Special Allowance
Statutory Deductions
PF Employee, ESI Employee, Professional Tax, Labour Welfare Fund
Employer Contributions
PF Employer, ESI Employer, Gratuity
Variable Earnings
Bonus, Arrear, Incentive, Overtime, Reimbursement
Variable Deductions
Leave Deduction, Advance Recovery, Loan Recovery, Penalty
Component Fields
| Field | Description |
|---|---|
| Code | Unique component identifier (e.g. BASIC, HRA, PF_EMP) |
| Name | Display name shown on payslip |
| Type | Earning, Deduction, Employer Contribution, etc. |
| Formula | Calculation rule if amount is derived |
| Amount | Fixed amount if applicable |
| Calculation Order | Processing sequence in payroll engine |
| Active Status | Whether component is active |
Keep component codes unique and consistent. Component codes are referenced in variable input JSON, CTC templates, and payroll calculation formulas.