Salary Configuration defines how each employee or Payroll Group is paid — payment and deduction components, overtime rates, daily vs monthly calculation basis, and attendance-category daily rates. It feeds the Pay Run calculation engine. Payment categories with isLOPAffected are prorated for loss-of-pay days.
Go to Payroll → Salary Configuration. The list shows every configuration with employee or payroll group, calculation basis, effective date, and overtime rates.
List columns
| **Column** | **Shows** |
|------------|-----------|
| Id | Configuration reference. |
| Employee | Employee assigned (when not group-based). |
| Group | Payroll group assigned (when not employee-specific). |
| Calculated On | Monthly Basis or Daily Basis. |
| Effective Date | Date from which this configuration applies. |
| Overtime rate per hour | Regular overtime rate. |
| Holiday OT Rate | Holiday overtime rate per hour. |
| Hourly Rate | Hourly rate for production wages (when enabled). |
| Primary Payment | First payment component of the configuration — shows that line's actual category title and amount (e.g. Basic Pay: 800.00). The title reflects the company's own first payment category, so it varies by setup. |
Quick filter tabs
| **Tab** | **Shows** |
|---------|-----------|
| Active | Active configurations (default). |
| Suspended | Suspended configurations. |
Advanced Filters
Payroll Group, Employee, Calculated On, Overtime rate per hour, Holiday Overtime Rate, Status, and Created Date.
List row actions
| **Action** | **Available when** |
|------------|-------------------|
| Edit | Always (with edit access) |
| Delete | Always (with delete access) |
| View | Always |
Quick Start — Create a Salary Configuration
1. Navigate
Go to Payroll → Salary Configuration and click New.
2. Basic settings
Assign to a Payroll Group or a specific Employee (employee-specific config overrides group defaults).
Set Calculated On — Monthly Basis or Daily Basis.
Enter Effective Date.
Set Overtime Rate Per Hour and Holiday OT Rate Per Hour.
When production wages are enabled, set Hourly Rate for hourly production wage calculation.
3. Payment components
Add rows under Payment Category — one per earning (Basic, HRA, allowances, etc.):
| **Column** | **Description** |
|------------|-----------------|
| Title | Payment category (categories 6 and 7 excluded — use dedicated modules). |
| Attendance Category | Daily rate per attendance category (when category-based attendance is enabled). |
| Calculated On | Monthly or Daily basis for this component (defaults from header). |
| Amount | Fixed monthly or daily amount. |
4. Deduction components
Add rows under Deduction Categories — one per recurring deduction (PF, ESI, etc.):
| **Column** | **Description** |
|------------|-----------------|
| Title | Deduction category (categories 1 and 2 excluded — handled by cash advance and deduction on expense). |
| Calculated On | Monthly or Daily basis for this component. |
| Amount | Fixed monthly or daily deduction amount. |
5. Save
Click Save. The configuration is active immediately and used by the next pay run for matching employees.
Basic Settings Reference
| **Field** | **Description** |
|-----------|-----------------|
| Payroll Group | Payroll group this configuration applies to. Use for group-wide salary structures. |
| Employee | Specific employee override. When set, takes precedence over group config for that employee. |
| Calculated On * | Monthly Basis — amounts are monthly, prorated by day counts. Daily Basis — amounts are per-day rates multiplied by payable days. Required. |
| Effective Date | Start date of this configuration. Pay runs use the config effective on the process date. |
| Overtime Rate Per Hour | Rate for regular overtime hours (used by pay run attendance OT and Overtime Entry Get Rate). |
| Holiday OT Rate Per Hour | Rate for holiday overtime days/hours. |
| Hourly Rate | Employee hourly rate for Production Wage chargeType 2. Shown only when production wages are enabled in payroll settings. |
Payment Components
Each payment row defines one earning component on the pay run.
| **Column** | **Description** |
|------------|-----------------|
| Sl Num | Line serial number. |
| Title | Payment Category (e.g. Basic, HRA, Conveyance). Categories 6 (Wages Payable) and 7 (Overtime) are excluded. |
| Attendance Category | When category-based attendance is enabled in HR settings, link a daily rate to a specific attendance category (e.g. different rate for night shift). |
| Calculated On | Monthly Basis or Daily Basis for this component. Defaults from header calculatedOn. |
| Amount | Fixed amount — monthly total or daily rate depending on Calculated On. |
Attendance category daily rates: When HR → Settings → Category Based Attendance is enabled, you can assign different daily amounts per attendance category. The pay run engine uses present days in each category to calculate the component total.
Deduction Components
Each deduction row defines a recurring deduction on the pay run.
| **Column** | **Description** |
|------------|-----------------|
| Sl Num | Line serial number. |
| Title | Deduction Category (e.g. PF, Professional Tax). Categories 1 (Cash Advance) and 2 (Deduction on Expense) are excluded — those come from vouchers. |
| Calculated On | Monthly Basis or Daily Basis for this component. |
| Amount | Fixed deduction amount. |
Deduction components from salary configuration appear on every pay run alongside auto-pulled voucher deductions (cash advances, deduction on expense) and calculated LOP.
Calculated On — Month vs Daily
| **Basis** | **How amounts work** | **Pay run calculation** |
|-----------|---------------------|------------------------|
| Monthly Basis (month) | Amount is the full monthly entitlement. | Prorated by working days, LOP days, and paid leaves per Payroll Settings. |
| Daily Basis (daily) | Amount is the per-day rate. | Multiplied by payable days (present + paid leave + extras − LOP). |
Each payment and deduction row can override the header Calculated On with its own basis. Mixed configurations are supported (e.g. Basic on monthly, conveyance on daily).
Connection with Pay Run
Salary Configuration is the primary input to the pay run calculation engine.
| **What pay run reads** | **Source in salary config** |
|------------------------|----------------------------|
| Payment lines (Basic, HRA, etc.) | Payment Category rows |
| Deduction lines (PF, etc.) | Deduction Category rows |
| Attendance OT amount | Overtime Rate Per Hour × OT hours from attendance |
| Holiday OT amount | Holiday OT Rate Per Hour × holiday OT days |
| Manual OT Get Rate | Overtime Rate Per Hour |
| Hourly production wage | Hourly Rate |
| LOP proration flags | isLOPAffected on each Payment Category |
Resolution order: When an employee has both a payroll group config and an employee-specific config, the employee-specific configuration takes precedence.
On pay run create: Selecting employee + period triggers salary calculation. Use Refetch on the pay run to recalculate after attendance corrections or config changes.
LOP & isLOPAffected
Loss-of-pay (LOP) reduces salary for absent or unpaid-leave days. Whether a payment component is reduced depends on the isLOPAffected flag on its Payment Category:
| **isLOPAffected** | **Behaviour on pay run** |
|-------------------|--------------------------|
| Yes (default for most categories) | Component amount is prorated — reduced proportionally for LOP days. |
| No | Component is paid in full regardless of LOP days (e.g. fixed allowances). |
The pay run engine passes isLOPAffected from the payment category into each calculated payment line. Deduction categories also have an isLOPAffected flag for deduction-style LOP handling.
Related payment category flags (configured in Payment Categories, not salary config):
Count Paid Leave as Paid Days — paid leave counts toward payable days for this component.
Applies to leave salary — component used for leave salary encashment (category 8).
Applies to extra payable days — component used for extra payable day calculation.
Create a payroll group configuration first, then add employee-specific overrides only where needed.
Set Effective Date correctly — mid-month changes require a new config row.
Align Calculated On with your payroll policy (monthly salary vs daily wage workers).
Review isLOPAffected on each payment category before go-live — incorrect flags cause over- or under-payment on LOP.
When using category-based attendance, map attendance categories to daily rates for shift-differential pay.
Keep OT rates in salary config in sync with company policy — they feed both attendance OT and manual overtime entries.
FAQ
What is the difference between payroll group and employee configuration?
Payroll group config applies to all employees in the group. Employee config overrides the group for that specific employee.
Monthly vs Daily — which should I use?
Monthly for salaried staff (amounts prorated by day counts). Daily for wage workers paid per present day.
What are attendance category daily rates?
When category-based attendance is enabled, each payment row can specify a different daily amount per attendance category (e.g. higher rate for night shift days).
How does isLOPAffected work?
Set on the Payment Category master. When Yes, the pay run reduces that component for LOP days. When No, the full amount is paid.
Why are categories 6 and 7 excluded from payment rows?
Wages Payable (6) comes from Production Wage. Overtime (7) comes from Overtime Entry or attendance calculation.
Do I need to recreate pay runs after changing salary config?
Draft pay runs: use Refetch to recalculate. Approved pay runs: cancel and recreate, or wait for the next period.
Where are OT and holiday OT rates set?
On the salary configuration payment rows — separate rate fields for normal overtime and holiday overtime when attendance OT is calculated on pay run.
What is Fixed Amount vs Percentage on a payment row?
Fixed pays a set amount (prorated by day mode). Percentage applies to a base component such as Basic when configured on the row.
Can one employee have two active salary configurations?
No. One effective configuration per employee — employee-specific config overrides payroll group config for that person.
Why is hourly rate not on the payment grid? Hourly Rate (Used for employee production wage) is a header field on the configuration form — used for production hourly wages, not monthly Basic/HRA rows.
Related Topics & Videos
Related documentation
Pay Run — consumes salary configuration for calculation.
Payroll Group — group employees for shared salary structures.
List columns
| **Column** | **Shows** |
|------------|-----------|
| Id | Configuration reference. |
| Employee | Employee assigned (when not group-based). |
| Group | Payroll group assigned (when not employee-specific). |
| Calculated On | Monthly Basis or Daily Basis. |
| Effective Date | Date from which this configuration applies. |
| Overtime rate per hour | Regular overtime rate. |
| Holiday OT Rate | Holiday overtime rate per hour. |
| Hourly Rate | Hourly rate for production wages (when enabled). |
| Primary Payment | First payment component of the configuration — shows that line's actual category title and amount (e.g. 