You create one or more salary structures under Settings and assign each employee to exactly one structure. When a pay run executes, Zoho Payroll reads the assigned structure, resolves formula-based components, applies statutory rules for PF, ESI, and PT, and calculates gross and net salary automatically.
Indian payroll requires different structures for different employee categories: factory workers may need ESI-eligible structures while IT professionals earning above the ESI wage ceiling need a separate structure with only PF and PT deductions. Zoho Payroll lets you mark each structure as ESI-applicable or not, ensuring correct statutory deductions without manual overrides.
Keep structures modular. Create a base structure for the majority of employees, then clone and modify for edge cases such as probationers, contract staff, or senior executives with car allowance. Changing a component formula inside a structure updates all employees assigned to it from the next pay run onward.
A salary structure is a reusable template in Zoho Payroll that defines which earning and deduction components apply to a group of employees and how each component is calculated, ensuring consistent and accurate payroll processing.
No. Each employee is assigned to one active salary structure at a time. If their compensation model changes, you reassign them to a new structure and the change takes effect from the next pay run.
Aaxonix is a certified Zoho implementation partner based in Pune. Architecture-first, no surprises.