Currencies

1. Navigate to Settings > Compensation > Currencies.
2. Click Add Currency.
3. Select the currency to use. 
4. Select the format in which the currency should be displayed.
5. Enter the exchange rate between the base and selected currency. For example, 1 AED = 22.29 INR.

> If a currency is mapped to a salary package to an employee, it cannot be disabled.

> The currency page in compensation is only accessible to compensation administrators.

What is base currency?

Base currency is the primary currency used for financial operations within an organization. It serves as the reference point against which other currencies are measured, calculated, and converted. Any additional currencies introduced later for different locations or purposes are linked and compared to the base currency for consistency and standardization.

Salary Structure 

Salary structure is useful if your organization wants to store detailed salary information. This is suitable when you want to store CTC (cost-to-company) along with salary breakup. 

Salary structure can be configured in Settings > Compensation > Configuration > Salary Structure.

Organizations that want to maintain only the CTC information can disable Salary Structure.

Salary structure is maintained using salary packages. Salary packages consist of salary components, namely, CTC components and benefits. 

1. The components are further split into CTC components and benefit components.
2. Within CTC and benefit components, certain primary components cannot be edited.
3. Additional custom components that are used in your organization can be added here.
4. Components can be cloned to simplify the process of adding additional ones.
5. Location-specific components can be added to store location-specific salary data.
6. Changes made to components can be tracked.

1. Basic pay
2. House rent allowance (HRA)
3. Provident fund (PF)
4. Fixed allowance - this is the remaining amount that is derived after all other CTC components have been allocated. (total ctc - (sum of other CTC components + variable pay) 
5. Fuel allowance
6. Education allowance
7. Conveyance allowance
   

Basic pay can either be entered as a flat amount or as an % value during the initial setup. The method used cannot be changed once it is associated to employees.

Fixed Allowance and Basic Pay CTC Components cannot be disabled, other components can be disabled (if they are not associated to any salary package).

1. Bonus
2. Medical insurance 
3. Gift card 
4. Meal pass 

1. Navigate to the Settings > Compensation > Salary Structure > CTC Components.
2. Click Add Component and select CTC Components from the drop-down.
3. Enter the name, code, and description.
4. Select the applicable location. All locations will be selected by default, but it can be changed.
5. Select if this component is a fixed or variable payment type.
6. If fixed pay has been selected above, define if this component is a flat amount or a percentage, or derived using formula. If variable pay has been selected, define if this component is a flat amount or a percentage of CTC.
   
   When using the "Fixed Pay" type, you can utilize the formula calculation type. Here, you can use mathematical functions, select pay components, and add operators to define how the calculation is derived. Use the "Insert,"  "Check Syntax," and "Formula Expression" fields to define, check, and finally save the formula used for calculation.
7. Select the payment frequency (monthly and annualy for fixed pay. Monthly, quaterly, half yearly and annually options for variable pay)
8. Select the status of this component.
9. Click Save.

> Flat amount, formula options are only available when setting up CTC for the first time (initial setup).

> Once a component is mapped to a salary package, the selected calculation type cannot be edited, but the calculation values can be altered.

> Components added for a specific location will be available to be mapped only for a salary package of the same location. 

> Once a component is mapped to a salary package, it cannot be disabled or deleted.

Adding a benefit component can be done using the same steps mentioned above.

Salary Package

> Applicability cannot be changed for the default salary package.

> A package assigned to employees cannot be disabled.

> Components of a salary package, once assigned to employees, cannot be altered, but their values can be changed.

> Packages added for a specific location will be available for mapping only for employees belonging to that specific location.

> A location cannot be removed from a package, if any employees are assigned to it.

> A designation cannot be removed from a package if employees of that designation are assigned to it.

Add Salary Package

1. To add a salary package, navigate to Settings > Compensation > Configuration > Salary Structure > Salary Package
   
2. Click on Add Salary Package
   
3. Enter an identification name for the salary package and a description
   
4. Configure applicability. You will have options to select locations, streams, designations and more.
   
5. Salary range options include different criteria (select drop-down), it can be setup as indicated in screenshot below or as per your requirement.

When tagging an employee to a salary package but their salary is not within the range or critera defined here, it will be still allowed, but a cautionary note will be displayed.

6. Select CTC currency to use, and input the total CTC (per annum). You can choose to map CTC and Benefits components as required. 
   
7. Finally click Save.
   

Tagging a Salary Package to an employee

1. Go to Operations > Compensation > Employee Salary > Add Salary
   
2. Select employee, salary package, enter the CTC, effective from data and remarks.

Revision Letter Templates

Create ready-to-use salary revision templates to quickly generate revision letters for your employees. Multiple templates can be created and all of these templates can be customized as required. 

1. To create a new template click Add Revision Letter Template
   
2. The created templates can be edited, cloned, deleted or disabled if required
   
3. Templates are customizable with fields and elements. 

To generate revision letters, navigate to Operations > Compensation > Salary Revision Letters > Generate Revision Letters

Setting Up Permissions

To configure permissions for these added roles, go to Settings > Compensation > Permissions > Salary.

Here you can customize access for compensation service and related data for the various roles.

1. Roles can be given permission to see either reportees' data or all employees' data.
2. All employee data can be shared to specific locations or all locations.
3. Reportee data cannot be restricted based on location.
4. Permission can be given to View CTC, View/Edit CTC breakup, View/Edit Benefits, Add Salary, Add Salary Revision, and View Salary revision.
5. View CTC permission must be given in order to give other permissions. 

Compensation Administrators

1. Navigate to Settings > Compensation > Permission > Compensation Administrators tab.
2. Select the employee you want to assign as a compensation administrator. 
3. Give them permission for settings, data, or both.
4. Select the applicable locations. It can be for all or specific locations.