Salary Heads are the components in the Salary Structure of an employee. Salary Head generally classified as Earnings and Deductions. Lenvica HRMS has another type of Salary Heads called ‘Non Payslip’.
Creating salary heads is the first step in Salary configuration. Lenvica HRMS has some default salary heads. You can define your own salary heads according to your requirements. Creating a salary head is easy! I’m going to show you how.
STEP 1
Create a new Salary Head of type Earnings
Click + to create a new salary head
Key in the salary head name and the description.You have three options here. Earnings, Deductions, and Non-Payslip.
Earnings appear on the earnings section of the payslip.
Deductions appear on the deduction section of the payslip.
And non-payslip salary heads are used for calculations and only appear on the payslip header, if required.
In this case, the overtime allowance is an earnings to the employee.Check this box if you want to specify the salary head as a master field.
Check this box if the salary head is an expense to the company.
Let’s save it. That’s it! A new salary head is created.
STEP 2
Create another Salary Head of type Deduction
I’m going to create another salary head now. This time, a deduction called ‘Welfare Fund’.
STEP 3
Create another Salary Head of type ‘Non-payslip’
Now, let me create a non payslip salary head called ‘Cost to Company’.
Just like this, you can add as many salary heads as you want.
Frequently Asked Questions
Is there a limit on the number of Salary Heads?
No. You can add as many as you want.
Why can’t I delete certain Salary Heads?
You won’t be able to delete Salary Heads which are already in use in a Salary Group. Also, you won’t be able to delete System Defined Salary Heads.
Why can’t I edit certain Salary Heads?
You won’t be able to edit Salary Heads which are already in use in a Salary Group. Also, you won’t be able to edit System Defined Salary Heads.
Can I use the same Salary Head for different groups of employees whose calculations are different?
Yes, you can reuse Salary Heads in different Salary Groups. The differences in calculation are specified in the Salary Group.
I have multiple companies within Lenvica HRMS. Can I reuse Salary Heads among the companies?
Yes, you can reuse the Heads among the companies.
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