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.