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https://help.tallysolutions.com/docs/te9rel60/Payroll/Creating_Pay_Heads.htm

Creating Pay Heads (Payroll)

The salary components constituting an employee's pay structure are Pay Heads. A pay head may be a benefit or a deduction from the salary. The value of these pay heads could be fixed or variable for each payroll period.

For example, Basic Pay is a fixed pay component, whereas Variable Pay and Bonus are variable components.

A Pay Head Type is categorised as Earnings, Deductions or Reimbursements.

The default pay head types in Tally.ERP 9 are:

     Earnings for Employees

     Deductions from Employees

     Employees’ Statutory Deductions

     Employer’s Statutory Contributions

     Employer’s Other Charges

     Bonus

     Gratuity

     Loans and Advances

     Reimbursements to Employees

Note: For international customers, Employees' Statutory Deductions, Employer's Statutory Contribution and Employer's other Charges pay head types are not applicable.