How to Create Salary Structure in ERPNext?

Salary structure will be created for each employee in the company. Salary structure is where employee's earnings and deductions are defined.

To create new salary structure, go to:
HR --> Salary structure --> New Salary structure.
Click on "New salary structure"

Step 1: Select an employee from employee master for whom you want to create the salary structure.

Step 2: Mark status of an salary structure as "Yes" or "No".
If marked Yes - System will consider that salary structure for processing salary slip of an employee
If marked No - System wont consider that salary structure for processing salary slip.

Also mention yearly package offered to employee in CTC (cost to company).

Step 3:

Earning and Deduction:

All the earning and deduction heads created in your account will be pulled in salary structure.

1. Keep only required earning and deduction head required for that employee.

2. Mention amount in front of each earning and deduction type.

    Note: No need to mention income tax and leave deduction if creating IT checklist for the employee.

3. LWP = Leave without pay

    Only earning head for whom "Depend on LWP" is marked will be affected when employee takes "leave
    without pay".

Net Pay = total earning - total deduction

Save the Salary Structure.

Now you can create a Salary Slip and IT Checklist against this Salary Structure.

For more details, please visit www.erpnext.com