Payroll Setup
Build salary structure templates
Define how a CTC is split into earnings, deductions and employer contributions using fixed amounts, percentages and a balancing remainder.
- Payroll Admin
On this page (7 sections)
Create a template
- Payroll
- Salary Structure Templates
- New Template
Enter a Template Name, such as “India Standard – Full Time”.
Choose Applies To: All States, or Specific State(s) if the template includes a component only some states have.
Add your Earning Components — see the calculation types below.
Add any Deductions & Employer Contributions.
Click Preview against ₹1,00,000 CTC to check the breakup.
Click Create Template.
Component calculation types
| Type | How it works | Example |
|---|---|---|
| Flat Amount | A fixed annual amount. Can be changed per employee when assigning. | Conveyance 19,200 |
| % of CTC | A percentage of the employee’s annual CTC. | Basic = 40% of CTC |
| % of Component | A percentage of another component in the template. | HRA = 50% of Basic |
| Remainder of CTC | Whatever is left of CTC after all other earnings. Earnings only, one per template. | Special Allowance |
In the deductions section, choose whether each line is a Deduction, Employer Contribution or Benefit.
India: tag Basic for EPF
EPF is calculated on the earnings tagged with the epf_wage_base wage-base tag. Tag Basic (and DA, if you use it):
On the Basic earning row, tick Counts toward EPF wage base (Basic + DA) if it’s listed.
If it isn’t listed yet, type epf_wage_base in + new wage-base tag and click Add.
Avoid double deductions
PF, ESI, Professional Tax and TDS are calculated from Statutory Rule Sets at pay-run time. If you add them to a template — for example to show them in the breakup — tick Computed live by compliance engine on each. The template line is then left off the payslip and the real amount comes from the statutory rules.
Read the preview
The preview shows each component’s amount for a CTC of 1,00,000 in your currency, with gross earnings, total deductions, estimated net pay and employer contributions. It also checks the CTC is fully allocated.
- CTC fully allocated — the components add up to the CTC.
- Only N% of CTC is allocated — add a Remainder of CTC earning or adjust the percentages.
The preview covers the template only; statutory deductions are added at pay-run time.
Edit, duplicate and manage templates
| Action | What it does |
|---|---|
| Assign to Employee | Opens Salary Structure Assignment with this template selected. |
| Set as Default | Pre-selects this template when assigning salaries. |
| Edit | Change the template. Employees already assigned keep their amounts until you re-assign them. |
| Duplicate | Opens a copy named “Copy of …” to adapt. |
| Deactivate / Activate | Marks the template inactive or active. |
| Change Log | Every change made to the template, with field-level details. |
| Delete | Only possible when no employees are currently assigned — reassign them first. |
Frequently asked questions
Add an earning with the calculation type Remainder of CTC. It absorbs whatever the other earnings don’t cover. You can have one per template.
Benefits appear in the breakup and preview, but they aren’t paid or deducted in pay runs.
Related articles
- Payroll SetupAssign and revise employee salariesGive each employee a salary template and annual CTC with an effective date — and handle increments, corrections and salary history.
- Payroll SetupStatutory rule setsReview and update PF, ESI, Professional Tax, TDS and other statutory rates as effective-dated versions — with a source for every number.