Salary Structure
Overview
Salary Structure – Business Overview
Salary Structure is a core payroll document in Dafater that defines how employee compensation is calculated and paid. It serves as the formal blueprint for an employee’s salary, clearly outlining earnings, deductions, and benefits in a structured and consistent way.
What Salary Structure Is Used For
In daily business operations, Salary Structure is used to: - Define how much an employee earns and how that pay is broken down (basic pay, allowances, benefits, deductions, etc.) - Ensure consistency and fairness in compensation across similar roles or grades - Act as the foundation for accurate and compliant payroll processing - Support transparency in employee compensation and communication
It ensures that payroll is not handled on an ad-hoc basis but follows clearly approved and documented rules.
Prerequisites and Setup Requirements
Before using Salary Structure, businesses should ensure: - Employees are properly set up in Dafater with correct roles, departments, and employment details - Company pay policies (such as salary components, benefits, and deductions) are clearly defined - Payroll periods and payment cycles are decided - Management approval exists for salary rules and compensation frameworks
Having these elements ready ensures the Salary Structure can be applied smoothly without confusion or rework.
Typical Workflow and Business Process Fit
A common business workflow involving Salary Structure looks like this:
Design Compensation Plan
HR or management defines salary rules for a role, grade, or employee category.Create Salary Structure
The Salary Structure is created to reflect approved earnings and deductions.Assign to Employees
The Salary Structure is linked to individual employees or groups of employees.Run Payroll
During payroll processing, Dafater uses the Salary Structure to calculate salaries automatically.Review and Update
When salaries change due to promotions, increments, or policy updates, the Salary Structure is revised or replaced.
This document acts as the bridge between HR decisions and payroll execution.
Key Business Scenarios Where Salary Structure Is Essential
Salary Structure is critical in situations such as: - Hiring new employees and defining their compensation - Annual salary revisions or performance-based increments - Promotions, role changes, or transfers - Managing different pay structures for departments, locations, or job levels - Ensuring compliance with internal policies and statutory requirements
Without a clear Salary Structure, payroll becomes error-prone and difficult to manage at scale.
Important Considerations for Users
When working with Salary Structure, users should keep in mind: - Accuracy is crucial, as payroll calculations depend directly on this document - Any change can impact employee take-home pay, so approvals and communication are important - Separate Salary Structures may be needed for different employee categories or compensation models - Historical Salary Structures should be retained for audit and reporting purposes - Regular reviews help ensure alignment with business strategy and compensation policies
In Summary
Salary Structure in Dafater is the foundation of a well-organized and reliable payroll process. It translates business compensation decisions into a clear, structured format that ensures employees are paid correctly, consistently, and transparently.
Basic Information
- Module: Payroll
- Document Type: Document
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| company | Company | Link | ✓ | Company | Company this salary structure applies to within Dafater. |
| letter_head | Letter Head | Link | Letter Head | Letterhead used on salary slips generated by Dafater. | |
| is_active | Is Active | Select | ✓ | , Yes, No | Indicates whether this salary structure is currently active. |
| is_default | Is Default | Select | Yes, No | Marks this as default salary structure for the company. | |
| currency | Currency | Link | ✓ | Currency | Currency used for all salary calculations and payments. |
| amended_from | Amended From | Link | Salary Structure | Previous salary structure this record was amended from. | |
| leaveencashmentamountperday | Leave Encashment Amount Per Day | Currency | currency | Daily amount paid for encashed employee leave. | |
| max_benefits | Max Benefits (Amount) | Currency | currency | Maximum allowable benefits amount under this structure. | |
| salaryslipbasedontimesheet | Salary Slip Based on Timesheet | Check | - | Generate salary slips based on approved timesheets. | |
| payroll_frequency | Payroll Frequency | Select | , Monthly, Fortnightly, Bimonthly, Weekly, Daily | Frequency at which payroll is processed. | |
| salary_component | Salary Component | Link | Salary Component | Linked salary component used in this structure. | |
| hour_rate | Hour Rate | Currency | currency | Hourly pay rate for timesheet-based salaries. | |
| earnings | Earnings | Table | Salary Detail | List of earning components included in salary. | |
| deductions | Deductions | Table | Salary Detail | List of deduction components applied to salary. | |
| conditionsandformulavariableand_example | Conditions and Formula variable and example | HTML | - | Reference for conditions, formulas, variables, and examples. | |
| total_earning | Total Earning | Currency | currency | Total calculated earnings before deductions. | |
| total_deduction | Total Deduction | Currency | currency | Total calculated deductions from earnings. | |
| net_pay | Net Pay | Currency | currency | Final payable amount after all deductions. | |
| modeofpayment | Mode of Payment | Link | Mode of Payment | Preferred mode for employee salary payment. | |
| payment_account | Payment Account | Link | Account | Account used to disburse salary payments. |
Child Tables
Earnings (Salary Detail)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| salary_component | Component | Link | ✓ | Salary Component | Salary earning or deduction component defined in Dafater payroll |
| abbr | Abbr | Data | - | Short code used to identify the salary component | |
| amount | Amount | Currency | currency | Calculated or entered amount for this salary component | |
| yeartodate | Year To Date | Currency | currency | Cumulative amount paid for this component during the year | |
| additional_salary | Additional Salary | Link | Additional Salary | Linked additional salary record applied to this component | |
| isrecurringadditional_salary | Is Recurring Additional Salary | Check | - | Indicates if additional salary repeats across payroll periods | |
| statistical_component | Statistical Component | Check | - | Component used for reporting, not affecting payroll totals | |
| dependsonpayment_days | Depends on Payment Days | Check | - | Amount varies based on payable working days | |
| exemptedfromincome_tax | Exempted from Income Tax | Check | - | Marks component as exempt from income tax calculations | |
| istaxapplicable | Is Tax Applicable | Check | - | Specifies whether tax applies on this component | |
| isflexiblebenefit | Is Flexible Benefit | Check | - | Identifies component as employee-selectable flexible benefit | |
| variablebasedontaxablesalary | Variable Based On Taxable Salary | Check | - | Amount varies according to taxable salary value | |
| donotincludeintotal | Do not include in total | Check | - | Excludes this component from salary total calculation | |
| donotincludeinaccounts | Do Not Include in Accounting Entries | Check | - | Prevents posting this component in accounting entries | |
| deductfulltaxonselectedpayrolldate | Deduct Full Tax on Selected Payroll Date | Check | - | Deducts full tax on a specific payroll date | |
| condition | Condition | Code | PythonExpression | Logical condition controlling component applicability in payroll | |
| amountbasedon_formula | Amount based on formula | Check | - | Determines amount using a predefined calculation formula | |
| formula | Formula | Code | PythonExpression | Formula used to compute the component amount | |
| default_amount | Default Amount | Currency | currency | Standard amount applied when no calculation is defined | |
| additional_amount | Additional Amount | Currency | currency | Extra amount added to the calculated component value | |
| taxonflexible_benefit | Tax on flexible benefit | Currency | currency | Tax amount calculated on flexible benefit component | |
| taxonadditional_salary | Tax on additional salary | Currency | currency | Tax amount applied on additional salary payment |
Deductions (Salary Detail)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| salary_component | Component | Link | ✓ | Salary Component | Salary earning or deduction component defined in Dafater payroll |
| abbr | Abbr | Data | - | Short abbreviation used to identify the salary component | |
| amount | Amount | Currency | currency | Calculated or entered amount for this salary component | |
| yeartodate | Year To Date | Currency | currency | Total accumulated amount for this component in current year | |
| additional_salary | Additional Salary | Link | Additional Salary | Linked additional salary record applied through Dafater payroll | |
| isrecurringadditional_salary | Is Recurring Additional Salary | Check | - | Indicates if additional salary repeats every payroll cycle | |
| statistical_component | Statistical Component | Check | - | Marks component for reporting only, not payable | |
| dependsonpayment_days | Depends on Payment Days | Check | - | Amount varies based on payable working days | |
| exemptedfromincome_tax | Exempted from Income Tax | Check | - | Specifies whether this component is income tax exempt | |
| istaxapplicable | Is Tax Applicable | Check | - | Determines if tax calculation applies to this component | |
| isflexiblebenefit | Is Flexible Benefit | Check | - | Identifies component as employee-selectable flexible benefit | |
| variablebasedontaxablesalary | Variable Based On Taxable Salary | Check | - | Amount changes based on taxable salary value | |
| donotincludeintotal | Do not include in total | Check | - | Excludes this component from total salary calculation | |
| donotincludeinaccounts | Do Not Include in Accounting Entries | Check | - | Prevents accounting entries for this salary component | |
| deductfulltaxonselectedpayrolldate | Deduct Full Tax on Selected Payroll Date | Check | - | Deducts entire tax amount on chosen payroll date | |
| condition | Condition | Code | PythonExpression | Logical condition controlling applicability of this component | |
| amountbasedon_formula | Amount based on formula | Check | - | Indicates amount is computed using a defined formula | |
| formula | Formula | Code | PythonExpression | Expression used by Dafater to calculate component amount | |
| default_amount | Default Amount | Currency | currency | Standard amount applied when no formula is used | |
| additional_amount | Additional Amount | Currency | currency | Extra amount added to calculated or default value | |
| taxonflexible_benefit | Tax on flexible benefit | Currency | currency | Tax amount applicable on flexible benefit component | |
| taxonadditional_salary | Tax on additional salary | Currency | currency | Tax amount applicable on additional salary payment |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| HR Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| HR User | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Bulk Salary Structure Assignment | Linked from | Payroll |
| Employee Grade | Linked from | HR |
| Salary Slip | Linked from | Payroll |
| Salary Structure Assignment | Linked from | Payroll |
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Currency | Links to | Geo |
| Letter Head | Links to | Printing |
| Mode of Payment | Links to | Accounts |
| Salary Component | Links to | Payroll |
| Salary Structure | Links to | Payroll |