To add an Ad-hoc allowance 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 modify and go to the Salary Components tab.
Switch to the Ad-hoc Components section to view all existing Ad-hoc Allowances, Deductions, and Bonuses.
Click the Add Ad-hoc Allowance button at the top-right corner.
Enter the Component Name (for example, “Festival Support Allowance”).
If needed, add a brief description explaining when or why this allowance is given.
If you select Apply tax exemption to this component, the allowance will not be added to the employee’s taxable gross.
- Example: If an employee receives ₹2,000 as this allowance and it is tax-exempt, their taxable income will not increase.
If you select The amount to be deposited separately, not along with the salary, the allowance will be paid outside of the monthly salary cycle
- Example: If the allowance is ₹1,500, it will not appear on the payslip and will be paid manually or through a separate transaction.
Click Add to save the Ad-hoc allowance for this payroll group.