Payroll Module

Salary Structure & Components SoftwareFlexible Salary Design

Design tax-efficient salary structures with configurable components, flexible benefit plans, and variable pay. From CTC breakup to net take-home — give your HR team complete control over compensation design.

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8 Salary Structure Capabilities

Design Compensation Your Way

Everything you need to build, manage, and optimize salary structures for your workforce

Salary Components

Define unlimited salary components — basic, DA, HRA, conveyance, medical, special allowance, and custom ones. Set each as taxable or exempt, fixed or percentage-based, with flexible computation rules.

Earnings & Deductions

Separate earnings and deductions with clear categorization. Configure statutory deductions (PF, ESI, PT, TDS) alongside company-specific ones like loan recovery, advance deductions, and canteen charges.

Flexible Benefits (FBP)

Let employees choose how to allocate their flexible benefit pool. Offer options like fuel reimbursement, telephone, food coupons, and gadget allowance. Employees optimize their tax savings while you stay compliant.

Salary Templates

Create reusable salary templates for different grades, departments, or roles. Apply a template to assign components in bulk during onboarding or appraisal. Clone and modify templates as policies evolve.

Tax-Saving Components

Configure tax-exempt components like HRA, LTA, children education allowance, and NPS employer contribution. The system automatically applies exemption limits as per the Income Tax Act.

HRA Calculation

Automatic HRA exemption calculation using the least of three methods — actual HRA received, rent paid minus 10% of salary, and 50%/40% of salary based on city classification. Handles mid-year rent changes.

LTA Management

Track Leave Travel Allowance claims with eligibility rules per block year. Employees submit claims with travel proof; the system validates against the LTA component and exemption limits automatically.

Variable Pay

Configure performance-linked variable pay, quarterly bonuses, and annual incentives. Define payout percentages tied to KPIs, department targets, or company performance. Process variable pay alongside regular salary or separately.

Configurable Salary Components
Total
12,847
+8.2%
Active
9,432
+12.1%
Pending
1,205
-3.4%
Completed
2,210
+15.6%
Monthly Trend
J
F
M
A
M
J
J
A
S
O
N
D
Breakdown
Unlimited custom components72%
Mark components as58%
Set applicability rules45%
Auto-cascade changes when30%

Configurable Salary Components

Build salary structures that match your company policy exactly. Fininvo lets you define any number of earnings and deduction components with granular control over computation, taxation, and applicability. Whether you follow a simple Basic + HRA + Special Allowance model or a complex multi-component CTC, the system adapts to you.

Unlimited custom components with formula-based or fixed computation
Mark components as taxable, partially exempt, or fully exempt
Set applicability rules by grade, department, location, or employee type
Auto-cascade changes when base components like Basic are revised
Flexible Benefit Plans
Processed
4,518
+6.7%
Approved
3,892
+9.3%
In Review
412
-1.8%
Efficiency
94.2%
+2.1%
Recent ActivityLive
TXN-1024Active
Purchase order approved
78,900
TXN-1023Sent
Invoice generated
1,45,000
TXN-1022Completed
Payment received
62,300
TXN-1021Processed
Credit note issued
12,800

Flexible Benefit Plans

Empower employees to optimize their tax savings through flexible benefit plans. Define a pool amount and let employees allocate it across eligible categories like fuel, telephone, food coupons, and gadget allowance. The system tracks declarations, validates claims, and adjusts payroll automatically.

Employee self-service portal for FBP declaration and proof upload
Real-time tax impact preview as employees adjust allocations
Automatic conversion of unclaimed FBP to taxable special allowance
HR dashboard showing FBP utilization across the organization
Variable Pay & Incentives
Records
8,204
+11.4%
Automated
6,150
+18.2%
Manual
2,054
-5.6%
Accuracy
99.7%
+0.3%
Monthly Trend
J
F
M
A
M
J
J
A
S
O
N
D
Breakdown
Multiple variable pay72%
Target vs actual58%
Pro-rata computation for45%
TDS on variable30%

Variable Pay & Incentives

Design performance-linked compensation that motivates your team. Configure variable pay rules tied to individual KPIs, team targets, or company-wide metrics. Process quarterly bonuses, annual incentives, and spot awards through the payroll system with proper tax treatment.

Multiple variable pay plans per employee — quarterly, half-yearly, annual
Target vs actual performance tracking with payout percentage calculation
Pro-rata computation for mid-year joiners and leavers
TDS on variable pay computed with annualization for accurate deduction

Works Great With

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FAQ

Frequently Asked Questions

Yes. Fininvo lets you create multiple salary templates — one for each grade, department, or employment type. Each template defines which components are included and their computation rules. When onboarding a new employee, simply select the appropriate template and the structure is applied automatically.

Ready to Redesign Your Salary Structures?

Stop wrestling with spreadsheets for CTC breakups. Fininvo gives your HR team a powerful salary component builder that handles complexity with ease.

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