General Components

Overview

When you click on the General Components option, you are simply directed to a screen like the image mentioned below:

The first tab in this page is Earning, here you will see different components like:

• Basic salary: The fixed amount of compensation that an employee receives before any deductions or allowances.

• HRA(house rent allowance): An allowance provided to employees to cover their rental expenses for accommodation if they don't reside in company-provided housing.

• Special Allowance: Additional allowance provided to employees for specific purposes, such as meeting unique job requirements or compensating for certain skills or expertise.

• Conveyance Allowance: An allowance given to employees to cover transportation costs incurred while commuting to and from work.

• Transport Allowance: Similar to conveyance allowance, it is provided to employees to cover transportation expenses but is typically aimed at employees who frequently travel for work-related purposes.

• Traveling Allowance: This allowance is specifically designed to reimburse employees for expenses incurred during official business trips, such as accommodation, meals, and transportation.

• Bonus: An additional payment made to employees as a reward for their performance, achievements, or meeting specific targets or goals.

• Commission: Compensation paid to employees based on the sales they generate or the revenue they bring to the company.

• Children Education Allowance: An allowance provided to employees to support the education expenses of their children.

• Fixed Allowance: An allowance that is provided at a fixed amount on a regular basis, independent of any other factors.

• Leave Encashment: The process of converting accumulated unused leave days into monetary compensation.

• Gratuity: A lump sum payment made by an employer to an employee as a token of appreciation for their long-term service when they leave the organization.

• Notice Pay: The amount of compensation paid to an employee when they resign from their position without serving the complete notice period required by their employment contract.

• Hold Salary: An arrangement where a portion of an employee's salary is withheld for a specific period, typically due to pending investigations or disciplinary actions.

• Overtime Allowance: Compensation provided to employees for working beyond their regular working hours or during specified periods.

• Dearness allowance (DA): An allowance provided to employees to offset the impact of inflation and the rising cost of living. It is usually calculated as a percentage of the basic salary.

These components together form the various elements that contribute to an employee's overall compensation package, ensuring that their salary is calculated accurately and fairly based on the agreed terms and conditions of their employment.

You can edit anyone by clicking on that action button which is in front of every components, you can refer the below mentioned image:

When you click on this "Action" button and edit, you are directed to a screen like the below mentioned image:

Here you can edit different information like:

1. Earning Name

2. Name in Payslip

3. Calculation Type: These calculation types include:

   • Percentage: Apply a specific percentage to a base value, such as the employee's basic salary or a specific allowance, to determine the final earning amount. This allows for proportional calculations based on percentages.

   • Fixed Flat Amount: Assign a fixed amount directly to an earning component, such as a bonus or special allowance. This ensures consistent payments without variation based on other factors.

   • Variable Flat Amount: This you have to enter on monthly basis. Set varying amounts for an earning component based on specific conditions or factors, such as performance targets or tenure. This provides flexibility in compensation and enables tailored rewards.

Now if you will see there is an option over there, please refer the below mentioned image:

Through this you can mark it active or inactive.