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Create Pay Heads and Define Income Tax Details (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 TallyPrime are:

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