Salary Structure Creation – Flexi Pay in Saral PayPack
In this tutorial we will learn how to create Flexi Pay for a Salary Structure.
Let’s understand what Flexi Pay is. It’s a salary structure that offers flexibility. Instead of having fixed amounts for things like housing allowance, medical expenses, basic salary, and dearness allowance, employees can choose how to divide their total earnings among these components to better suit their individual needs.
To begin with it,
In Saral PayPack, Flexi Pay is an additional option where the user has to enable based on their requirement. Navigate to Option Settings under Initial settings and click on the Additional tab to enable Flexi Pay option, Click on Save.
Now to create the salary structure using flexi pay, Navigate to Salary Structure Definition under Master Module. Enter the Salary Structure name in the Salary Structure field and enable Flexible Employee Pay (Flexi Pay) option and the required options under Flexi pay Setting and click on Save.
Let us now explore the options in Flexi Pay Settings :
- PF Employer Contribution : The amount of Employer contribution for PF will be included in the monthly gross, if PF Employer contribution is enabled. It will not affect the calculation of Net salary payable. Also that amount is shown in the Annual view of salary. This amount is considered while deriving the Flexi pay.
- ESI Employer contribution: The contribution of the employer for ESI will be included in the monthly gross, if this box is enabled. It will not affect the calculation of Net salary payable. Also that amount is shown in the Annual view of salary. This amount is considered while deriving the Flexi pay.
- Gratuity Provision: Some amount is kept aside for the provision of gratuity. If this option is enabled, the amount will be included in the monthly gross. But it is paid to the employee only at the time of leaving. This provision amount will get displayed in the salary editor and annual view of the salary.
- FBT deduction: Some of the benefits or perks like Telephone charges, Transport charges received from the employer would attract Fringe Benefit Tax. The amount deducted towards fringe benefit tax will be added to the total deductions and will be deducted from the gross salary. This FBT deduction amount is shown in the salary editor under the FBT Adjust head.
This ends the reading to the creation of Flexi Pay Salary Structure in Saral Pay Pack.
