These pages work from the Advanced payroll level. Below it they say "Arrears, adjustments, settlements, income tax and bonus work from the Advanced level." Change the level under Payroll > Payroll settings (the institution admin or owner).
Rate changes and arrears
A rate change sets a new amount or percent of a salary component from a date.
- Open Payroll > Rate changes and press Add a rate change.
- Choose the Component (for example Dearness allowance), the Salary structure (or leave it for every structure that has it), the date it applies From, and the New value as an Amount or a Percent. Write a Reason such as "DA hike from July".
- Save.
If the From date is before months already paid, those months get arrears: each month is worked out again with today's terms and the difference is paid in the next pay run, with PF and ESI under that month's rules. ESI is only for months the person was covered. Arrears are taxed in the month they are paid.
Arrears go back by the setting Arrears go back (months) in Payroll settings (0 to 36; 0 switches arrears off).
If you remove a rate change, months already paid at that rate get the difference taken back as negative arrears in the next run.
Review arrears before approving
On a pay run an Arrears in this run block lists the staff, the components, PF and ESI on arrears and the amount. Check them before you approve. A month is never paid twice. If another run already paid an arrear for a month, it is taken back on that line.
One-off adjustments
Open Payroll > Adjustments and choose the Month.
- Press Add an adjustment. Choose the staff member, the Kind (for example an incentive or a recovery) and the amount.
- Tick what it counts for: taxable or not, PF wages, ESI wages, or a deduction.
- Give the name that will show on the payslip. Press Send for approval.
- Another person presses Approve or Reject. If you approve your own entry you must give a reason. A cancelled entry is removed while the run is a draft.
Only approved entries enter the pay run.
Overtime
Open Payroll > Overtime. Press Add overtime (hours or days, in half hours as 0.5) or From attendance to suggest entries from the staff attendance. The rate shows as "Rate X: basis". Approval works like adjustments.
Common questions
Why is a pay line on hold?
A line with arrears, a settlement, bonus or other approved amounts can be held. It counts as paid after the run is locked but it stays out of the bank file. Release it before approving.
The page asks for the Advanced level.
Ask the institution admin to switch it on in Payroll settings.