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Salary Structure in Frappe HR: Defining Employee Pay

A Salary Structure is a template that defines how an employee is paid the earning and deduction components that make up their salary and how each is calculated. You build it once from your salary components, then assign it to employees to drive their payroll.

You will find it under Home > Human Resources > Payroll > Salary Structure.

BEFORE YOU START

Create your Salary Components (the earnings and deductions) first, and have the Company ready, since the structure is assembled from those components.

How to create a Salary Structure

  1. Open the Salary Structure list and click New.
  2. Enter a Name and select the Company and Currency.
  3. Set the Payroll Frequency (such as Monthly).
  4. In the Earnings table, add the earning components; in the Deductions table, add the deduction components each as a fixed amount or a formula.
  5. Set the payroll payment details, such as Mode of Payment and Payment Account.
  6. Save, then Submit.

Earnings, deductions and net pay

The structure brings together the two sides of pay: earnings build gross pay and deductions reduce it, with net pay being the difference. Because components can use formulas, a structure can express rules like “HRA is 40% of Basic” once, and have them apply to everyone on that structure.

Timesheet-based salary

For employees paid by the hour, a structure can be based on timesheets using an hourly rate and a timesheet-linked earning component, so their pay reflects the hours they logged rather than a fixed monthly figure.

Putting a structure to use

A Salary Structure on its own doesn’t pay anyone you apply it through a Salary Structure Assignment, which links it to an employee with their base pay (and effective date). From there, payroll generates each employee’s Salary Slip from their assigned structure.

TIP

Keep a small number of clear structures that map to your real pay grades, and lean on formulas rather than fixed amounts where you can. Formula-driven structures adjust automatically when an employee’s base changes, so you maintain far fewer variations by hand.

Related Topics

  • Salary Component
  • Salary Structure Assignment
  • Salary Slip
  • Payroll Entry
  • Income Tax Slab

SUMMARY

A Salary Structure defines how an employee is paid, assembling earning and deduction components into a pay template. Create it with a name, company, currency, and payroll frequency, add earnings and deductions (fixed or formula-based), and set the payment details, then submit. Earnings build gross pay and deductions reduce it to net pay; structures can also be timesheet-based. Apply a structure via a Salary Structure Assignment so payroll can generate each employee’s Salary Slip. Formula-driven structures keep maintenance low.

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