Pay Structures
The pay structure or salary structure defines the compensation given to the employees. It shows the breakup of the salary into various components. Based on various criteria such as the professional experience or employees, or grades or bands the employees are categorized under, different pay structures may be defined in an organization. One pay structure may be applicable to multiple bands or grades and one band or grade may have multiple pay structures.
For example, you can define a pay structure with the name PayStructure1.
Several components are included in this pay structure. For example, Basic, LTA, PF, HRA and Medical.
The formula is defined for computation of each component based on organization policies. For example, a certain percentage of the CTC is defined for each component.
This pay structure may be applicable to employees in Band 1 and 2.
You can also define another pay structure with the name PayStructure2 and include some more additional components in it. PayStructure2 can also be applicable to some employees in Band 1, based on any other criteria that the employee satisfies. For example, more work experience.
As an administrator, you can define pay structures and assign the formula for computation of components in the pay structure. This is usually a onetime configuration. However, if there are any changes, you can edit the pay structures.
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