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https://help.tallysolutions.com/docs/te9rel63/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.