How to Add an Employee’s Initial CTC & Salary Components

Overview
Once the profile is set up, define the employee’s total Cost‑to‑Company (CTC) and break it into salary components (Basic, Allowances, etc.). Laywork will auto‑calculate their monthly and annual amounts.

Step‑by‑Step Instructions

1. In HR → Payroll → Employee Salary, find the employee and click + Add Salary in their row.

2. In the Add Salary popup:

   • Enter Annual CTC (the total cost for the year).

   • For each Salary Component (Basic Salary, Special Allowance, etc.):

     1. Set Calculation Type (% of CTC, Fixed, or Variable).

     2. Fill in the Monthly Amount or let the system derive it (for % types).

   • Review the Cost To Company summary at the bottom.

3. Click Save to finalize their initial salary structure.

Tips

• Start with Basic = 50% of CTC (common industry benchmark), then allocate the rest to allowances.

• Label any ad‑hoc components as “Variable” so they don’t factor into fixed-cost calculations.

Troubleshooting & FAQs

• “Cost To Company” doesn’t match CTC?

  • Check that you’ve assigned 100% across all components; unallocated CTC defaults to a “Special Allowance” slot.

• I can’t select a component

  • Make sure that component exists under Settings → Payroll Settings → Salary Components.