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Salary Groups

Salary Groups define structured pay scales for different employee categories. Instead of configuring salary components for each employee, you group employees under a common structure — making payroll consistent, accurate, and easier to manage.

What You’ll Learn

By the end of this guide, you’ll be able to:

  • Create and configure salary groups
  • Assign salary components to groups
  • Apply groups to employees (individually or in bulk)
  • Manage group settings and rules
  • Generate group-level reports

Getting Started

Prerequisites

You’ll need:

  • HR Admin Access → permission to create and edit salary groups
  • Salary Components → must be set up first
  • Employee Data → employees ready to be assigned
  • Planned Group Structure → outline of departments, designations, or salary levels

What Are Salary Groups?

Salary groups help you:

  • Define Components – Specify which earnings and deductions apply
  • Set Values – Fixed amounts, percentages, or formulas
  • Categorize Employees – Group by department, designation, or contract type
  • Standardize Payroll – Ensure consistent salary structures
  • Simplify Updates – Update one group instead of multiple employee records

Creating a Salary Group

Step 1: Access Salary Groups

  • Go to Payroll in the main menu
  • Click Salary Groups
  • View the existing list
  • Select Add Group

Step 2: Enter Basic Information

Fill in:

  • Group Name (required)
  • Group Code (unique identifier)
  • Description (optional but recommended)
  • Group Type → Standard, Contract, Intern, or Custom

Step 3: Configure Applicability

Choose where this group applies:

  • Departments (e.g., Finance, IT)
  • Designations (e.g., Manager, Intern)
  • Employee Levels (e.g., L1, L2)
  • Salary Ranges (if applicable)

Step 4: Assign Salary Components

  • Earnings → Select, set values, apply calculation rules, and define priority
  • Deductions → Select, set values, apply calculation rules, and define priority

Step 5: Advanced Settings

  • Calculation → Salary method, rounding rules, tax calculation, allowance
  • Display → Show in payslip, order of components, reporting inclusion

Tip: Test the group with one employee before rolling it out widely.

Assigning Employees to Groups

Individual Assignment

  • Open Employee Assignment
  • Search and select employees
  • Choose the correct Salary Group
  • Set Effective Date
  • Save

Bulk Assignment

  • Select multiple employees
  • Use Bulk Assignment
  • Choose the salary group and effective date
  • Confirm assignment

Warning: Reassigning an employee to a new group overrides their previous salary structure.

Configuring Group Components

  • Fixed Amount → Set value, currency, and effective date
  • Percentage-based → Enter % of base component (e.g., 10% of Basic)
  • Formula-based → Add formula, test syntax, add variables and conditions

Group Rules

  • Min/Max Salary → Boundaries for salaries in the group
  • Increment Rules → Define how raises are applied
  • Promotion Rules → Rules for moving between groups

Managing Salary Groups

  • Edit → Update group details or components
  • Copy → Duplicate an existing group, then adjust

Delete → Remove group (only if no employees are assigned)