To add a recurring reimbursement for a specific payroll group, click on Payroll Settings from the sidebar and open the Payroll Groups section.
Select the payroll group you want to update and go to the Salary Components tab.
Stay on the Recurring Components section, where all monthly fixed components are listed.
Click the Add New Component button on the top-right to create a new recurring reimbursement.
Enter the component name and choose Reimbursement as the component type.
Select the pay logic, such as Flat Amount or Percentage of CTC, and enter the required percentage or amount.
If applicable, define the maximum annual limit.
Explanation of each checkbox with examples:
- Apply tax exemption to this component
- Use this when the contribution amount should not be taxed.
- Example: If the company gives a ₹500 “Welfare Contribution” that is exempt under policy, enabling this ensures the amount is not taxed.
- Make it eligible for arrears calculations
- Enable this when the contribution needs to be auto-adjusted for previous months.
- Example: If a ₹300 contribution was supposed to start from January but added in March, the system will add missing amounts for January and February.
- Permit employee-level custom values and overrides
- Use this when different employees can have different contribution amounts.
- Example: One employee may receive a ₹200 contribution, while another may get ₹500 depending on grade or department, you can also manually adjust the amount during payroll execution.
- This component is not affected by any Loss of Pay days
- The employee will get the full contribution even if they took unpaid leaves.
- Example: A ₹400 contribution is always paid in full, even if the employee had 2 LOP days.
- Calculate it on a pro-rata basis
- The contribution will reduce based on attendance.
- Example: If contribution is ₹600 monthly and the employee works only half the month, they will get ₹300.
- Include in EPF Contribution
- Shows this deduction clearly in the employee’s payslip.
- Example: A ₹1,000 contribution might increase the PF-calculable wage if included.
- Include in ESI Contribution
- Enable this if the contribution amount should be counted in ESI salary.
- Example: If salary is ₹20,000 and contribution is ₹500, ESI will calculate on ₹20,500 when enabled.
- Display in the payslip
- Shows this contribution as a separate line item.
- Example: Payslip will show “Welfare Contribution – ₹500.”
- Mark as active
- Ensures the contribution is applied during payroll processing.
- Once all settings are configured, click Save to add the contribution component to the payroll group.