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Employee Salary

Before you can pay anyone, each employee needs a salary on file. This article explains how a salary is structured in BusinessHRM and how to add, edit, increment and review an employee's salary.

Where to find itPayroll›Employee Salary (/account/employee-salary)

Permission: You need the Manage Employee Salary permission (set to All or Added) to open this page and to add or edit salaries.

How a salary is structured

A salary in BusinessHRM is built from a few layers:

  • Annual Salary (CTC) — the total yearly cost to company. The monthly figure is simply CTC ÷ 12.
  • Basic Pay — the core of the monthly salary. You decide whether it is a fixed amount or a percentage of CTC.
  • Salary components — the earnings and deductions that come from the employee's Salary Group (House Rent Allowance, Provident Fund, etc.). Each component is a fixed amount, a percentage of CTC, a percentage of Basic, or a per-employee variable value.
  • Special Allowance (also called Fixed Allowance) — the balancing amount. It is whatever is left of the monthly CTC after Basic Pay and all earning components are accounted for. It can never be negative.

Put simply:

Monthly CTC = Basic Pay + earning components + Special Allowance. Deduction components are then subtracted to reach take-home pay.

Tip: The Special Allowance is calculated for you. If it comes out negative the system blocks the save and asks you to check your numbers — that means your Basic Pay plus components already exceed the monthly CTC.

The Employee Salary list

The list shows every employee (Contacts are excluded) with:

Column What it shows
Name The employee.
Employee Salary Cycle An inline dropdown to set the pay cycle: Monthly, Weekly, Bi-weekly or Semi-monthly. Changing it saves immediately.
Salary Group The salary group assigned to the employee (or --).
Allow Generate Payroll An inline Yes / No dropdown that decides whether the employee is included when payroll is generated. Changing it saves immediately.
Net Salary (Monthly) The employee's monthly net salary, or -- if no salary is set yet.
Action The menu to add, edit, increment or view salary history.

You can filter the list by Department and Designation, and use the search box to find a person by name or email. Use Export Excel to download the list.

Important: Setting Allow Generate Payroll to Yes is required for an employee to be paid. An employee with it set to No is skipped during payroll generation.

Add an employee's salary

If the Net Salary column shows --, no salary exists yet.

  1. Go to Payroll → Employee Salary.
  2. Find the employee, open the Action menu (the three-dot icon) and click Add Salary. A panel opens.
  3. Enter the Salary as an Annual Salary (CTC) figure. The monthly figure updates as you type.
  4. Set Basic Pay:
    • Choose % of CTC or Fixed from the dropdown.
    • Enter the value. (If you choose % of CTC, the value is capped at 100.)
  5. The components from the employee's salary group appear automatically with their calculation type and monthly/annual amounts. For any variable component, type the per-employee amount.
  6. Check the Special Allowance row and the Cost to Company total at the bottom.
  7. Click Save.

Note: Saving a salary also gives the employee a default Monthly pay cycle if they don't already have one. You can change the cycle afterwards from the list.

Edit an employee's salary

  1. From the Action menu choose Edit.
  2. Adjust the Annual Salary, Basic Pay type/value, or any variable component values.
  3. Click Save.

Editing replaces the current salary figures. Use Increment instead if you want to add a raise while keeping the history.

Give a raise (Increment)

The Increment option records a salary increase as a dated event, so the old and new figures are both kept.

  1. From the Action menu choose Increment.
  2. Enter the new Annual Salary and the date the increment takes effect.
  3. Save.

Increments are used when calculating tax across the finance year, so the date matters.

View salary history

Choose Salary History from the Action menu to see the chain of salary records and increments for that employee in date order.

What happens next

Once an employee has a salary, the correct cycle, and Allow Generate Payroll = Yes, they will be included the next time you generate payroll. See Generating Payroll.