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Zoho Payroll

Salary Structure

A salary structure in Zoho Payroll is a named template that groups earning and deduction components, defining how employee compensation is calculated each pay period.

A salary structure in Zoho Payroll is a named template that bundles earning components (Basic, HRA, allowances) and deduction components (PF, PT, TDS) to define the complete compensation formula applied to a group of employees.

How Salary Structures Work in Zoho Payroll

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.

Configuring Structures for India Statutory Compliance

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.

Best Practices for Structure Design

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.

Example: A Pune-based software company creates two structures: ‘Tech-Staff’ (Basic 40%, HRA 20%, Special Allowance 40%, PF, PT) and ‘Support-Staff’ (Basic 50%, HRA 20%, Conveyance, ESI, PF, PT). New hires are assigned the correct structure during onboarding and their first payslip is generated without any manual calculation.
What is Salary Structure in Zoho Payroll?

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.

Can one employee have multiple salary structures in Zoho Payroll?

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.

Need help implementing this in Zoho?

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