Salary Groups 0 0

What Salary Groups Do

Salary Groups let payroll administrators bundle salary components together and apply them to employees. Instead of assigning each component one by one, a group can represent a standard pay package.

For example, a company may have:

• Regular Employee Group
• Contract Worker Group
• Executive Group
• Part-Time Group
• Intern or Exempt Worker Group

Each group can include the components that apply to that type of employee.

When To Use Salary Groups

Use Salary Groups when:

• Multiple employees should receive the same payroll components.
• Different employee types need different statutory deductions.
• Payroll setup should be easier to maintain.
• Finance needs cleaner grouping for reports or GL review.

Practical Example: Regular Employee Group

A company wants all regular employees to have these components:

• Basic Salary
• NHI
• Social Security
• Payroll Tax
• Pension

Create a Salary Group named Regular Employees, then add the required components to the group. When new regular employees are added, assign them to this group instead of manually configuring each item.

Practical Example: Contractor Group

A contractor should not have the same statutory deductions as a normal employee.

Create a Salary Group named Contract Workers, then include only the components that apply to contractors.

This helps prevent accidental NHI, Social Security, or pension deductions when those items should not apply.

Setup Steps

1. Go to Payroll > Payroll Setting.
2. Open Salary Groups.
3. Add a new group.
4. Give the group a clear name.
5. Select the components that belong to the group.
6. Save the group.
7. Assign employees to the correct salary group from the employee salary or contract setup.

Common Mistakes

• Creating too many groups with small differences.
• Using one group for all employees when contractors or exempt workers need different rules.
• Forgetting to update the group when statutory components change.
• Assigning an employee to the wrong group before payroll is run.

Related Articles

• Salary Components
• SA Component Group
• Employee Salary Profile
• Superadmin Payroll Components