A Salary Group is a collection of Salary heads and is generally called a Salary Structure. In Lenvica HRMS, a Salary Group is created for each group of employees with a similar Salary Structure.

You should create your salary heads before picking them to form a Salary Group.

Create Salary Heads

Create Salary Group

I’m going to create a Salary Group for all the Software Engineers in my company.

 Create Salary Group

Pick Salary Heads

Now, pick the salary heads applicable to the Software Engineers. Let’s start with Basic Pay. Enter the default value of the salary head over here. I’m going to keep the default value as zero, as the individual values for Basic Pay will differ for each employee. The individual values are defined in the Salary Card.

Add Salary Heads to Salary Group
 Basic-Pay-Default-value-Salary-Group

You have three options here. Fixed indicates that the value is a fixed number. Formula indicates that the value has to be calculated using the formula defined. The third option is deprecated.

Creating a new salary head

In this case, Basic Pay is a fixed number.

Creating a new salary head

Define formula

Let’s add another Salary Head called Medical Allowance, which is 20 percent of Basic Pay. Choose the formula option, and define the formula in the Formula Editor.

Link payroll to the attendance module

Now, I’m going to show you how to link your payroll to the attendance module. If you look at the attendance for this employee, he has clocked 10 hours of overtime for the month. I want to pay him for every hour at twice his normal rate.

Let’s add a Salary head called ‘Overtime Allowance’ and define its formula. The hours of overtime will be picked from the attendance module when the payroll is processed.

Now, let me add the other Salary heads to complete the Salary Group.

I’m done. The Salary Group for Software Engineers is ready!

In the next step, you should assign the Salary Group to all the Software Engineers.

Frequently Asked Questions

Yes, you can! For eg. Every Salary Group usually has the ‘Basic Pay’
No. Changes to Salary Group will only affect payslips created in the future.

Yes. The Salary Heads are processed in the order in which they appear in the Salary Group. When you specify formula for a Salary Head, you will be able to use only the salary heads listed above in the formula.

Yes, you can. You should enable ‘Multiple Currencies’ in Salary Settings before you can use this option.

Yes, but, only an Administrator will be able to copy Salary Groups from another company.

Yes, you can. Make sure you enable this option under Salary Settings, before you create the Salary Groups.