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.