Allowances
Allowances are the core of payroll. They are the pay components — basic, housing, transport, deductions, loan components — defined per grade with the formula that calculates each one. Everything payroll produces is built from them.
Where to find it
Go to HRM > Settings > Allowances Setup. Select a grade to see the allowances defined against it.
Allowances hang off grades, so Grade Setup has to be done first. Selecting a grade here is what scopes everything you then define.
Defining an allowance
| Field | Description |
|---|---|
| Grade | Which salary band the allowance belongs to. |
| Allowance Name | The component as it appears on the payslip. |
| Type | Whether it adds to pay or deducts from it. |
| Formula | How the amount is calculated — a fixed value, or a percentage of another component. |
| Taxable | Whether the component is subject to tax. |
Formulas
An allowance can be a fixed amount or derived from another — housing at a percentage of basic, for instance. Building the structure this way means a salary revision flows through the dependent components automatically instead of being edited one by one.
Allowances that other features depend on
| Feature | Needs |
|---|---|
| Loan Type | A loan allowance to exist first — the loan type is built on it. |
| Taxes | A tax allowance the tax bands are applied against. |
| Allowances Import | The same definitions, loaded in bulk. |
Related pages
- Grade Setup — must exist first
- Payslip Process — where allowances appear
- Loan Type · Taxes — features built on allowances
- Allowances Import — loading in bulk