The employee is the biggest asset of the organization. Payroll contains a draft of all employees at the organization and details of remuneration they are entitled to. An efficient salary management system is very helpful in streamlining all process for payment, especially for personnel at Human Resources.

Remuneration of employees varies based on many factors including skills & experience. There are many steps involved while processing payments such as tracking work hours, deducting employee benefits sum, taxes, etc. Odoo’s Payroll Management system covers everything & makes the life of administration at HR easy.

We will be discussing how to define Salary Rules & setting up different Salary Structure in this blog.

Installation: To utilize these features we have to first install the Payroll app from Odoo Apps.

Before creating Salary Structures, we should define rules regarding different salaries known as Salary Rules. Different Salaries of employees requires a different set of rules for governing them.

Salary Rules:

Payroll -> Configuration -> Salary -> Rules

We can view few rules listed which have been already created.

For Creating new rule, click on Create Button.

Name: Name of the pay

Category: Category of the pay could be basic, allowance or bonus.

Conditions: User can choose a condition from:- Always True, Range, and Python expressions.

Computation: We can select different types of computations which will be based on:-Percentage, Fixed amount, Python code.

Company Contribution: Company Contribution Partner

Description:- We can add any description if necessary.

Accounting: Debit and Credit Account Details for making Salary Rule.

Salary Structure:

Payroll -> Configuration -> Salary -> Structures

For computing salary & creating a payslip, Salary Structure is mandatory. We use already set salary rules for Salary Structure.

Salary Structure Type:

Payroll -> Configuration -> Salary -> Structure Types

Different organizations keep different salary structures. Below pics that will help you to get a broad idea.

Type of employment, experience, and other factors are weighed-in before preparing Salary Structure Type.

This is how Salary Rules & Salary Structures are defined and configured.