What one component represents
Create one record for each separately calculated amount: Basic Salary, DA, HRA, Milk Allowance, Employee PF, Employer PF, Advance Recovery, Expense Reimbursement and so on. Use a short stable component code because later calculations refer to that code.
| Field | What it controls | Example |
|---|---|---|
| Component Code | Unique calculation identifier. Use uppercase letters, numbers and underscores. Do not rename it after other formulas refer to it. | BASIC, DA, PF_EMPLOYEE |
| Component Name | User-facing name shown in salary structures, payroll lines and reports. | Basic Salary |
| Component Stage | Classifies the amount in payroll totals and determines whether it is an earning, deduction, contribution, reimbursement or information only. | GROSS_EARNING |
| Occurrence Type | Describes whether the component normally repeats or is supplied only for selected payroll periods. | RECURRING |
| Calculation Method | Default method used when a scheme or employee structure does not override it. | PERCENTAGE |
| Calculation Base | One or more earlier component codes whose calculated values form the base. Separate codes with + or another non-alphanumeric separator; Jhapu adds the referenced values. | BASIC+DA |
| Default Posting Account | Fallback ledger used for the component's debit or credit posting. A scheme or employee structure may override it. | Salary Expense / PF Payable |
| Posting Side | Whether the component adds a debit or credit posting line. | DEBIT for expense; CREDIT for liability |
| Calculation Order | Default ordering hint. In an active payroll scheme, Calculation Sequence is authoritative. Dependencies must come first. | BASIC 10, DA 20, HRA 30 |
| Active | Only active components are available to the payroll calculator. Deactivate obsolete components instead of reusing their codes for a different meaning. | Checked |
Component Stage—every value
| Value | Behaviour | Choose it when |
|---|---|---|
GROSS_EARNING | Added to Adjusted Gross. When attendance affected, it is prorated before the adjusted gross is calculated. It contributes positively to Net Pay. | Basic, DA, regular HRA or another earning considered part of salary gross. |
ADDITION | Shown separately under Additions and added to Net Pay after adjusted gross. | Milk allowance, electricity allowance, incentive or a company-specific addition kept outside gross. |
EMPLOYEE_DEDUCTION | Shown under Employee Deductions and subtracted from Net Pay. | Employee PF, employee ESI, professional tax, TDS or advance recovery. |
EMPLOYER_CONTRIBUTION | Shown separately for employer cost. It does not increase the employee's Net Pay. | Employer PF, employer ESI, gratuity provision or another employer-borne cost. |
REIMBURSEMENT | Shown under Reimbursements and added to Net Pay without becoming Adjusted Gross. | Approved travel, telephone or expense reimbursements. |
INFORMATIONAL | Calculated and retained as a component line but excluded from the current Net Pay equation. | A display-only value, notional amount or base used for reporting/other formulas. |
The engine calculates Net Pay as Gross Earnings + Additions + Reimbursements − Employee Deductions. Employer Contributions and Informational components are recorded but not included in that equation.
Occurrence Type
| Value | Behaviour | Choose it when |
|---|---|---|
RECURRING | Marks the component as normally applicable in every eligible payroll period. | Basic, DA, HRA, fixed allowance, PF or another regular item. |
VARIABLE | Marks the component as period-dependent and normally subject to entry, import or review for a particular month. | Bonus, overtime, incentive, reimbursement or an occasional recovery. |
In the current payroll engine, inclusion comes from the active Payroll Scheme Components and Employee Salary Structure Lines. Occurrence Type explains the intended behaviour; it does not by itself remove a component from a month.
Calculation Method—every value
| Value | Behaviour | Choose it when |
|---|---|---|
FIXED | Uses Monthly Amount from the employee structure; if zero, uses Fixed Amount or the scheme's Default Amount. | Basic ₹20,000 or a fixed allowance ₹1,000. |
MANUAL | Currently resolves from the same configured amount fields as FIXED. It indicates that a permitted user may provide/override the period amount. | Variable bonus, incentive or recovery reviewed before finalisation. |
PERCENTAGE | Adds the component codes in Calculation Base and multiplies that base by Percentage ÷ 100. | DA 10% of BASIC; HRA 20% of BASIC+DA. |
FORMULA | Uses structured Formula Metadata from the scheme. If no formula JSON is present, it falls back to percentage of the base, then the base itself, then the fixed amount. | A calculation requiring structured add/subtract/multiply/divide operations. |
ATTENDANCE_PRORATED | Multiplies the configured fixed amount by Final Payable Days ÷ Working Days. | A fixed monthly earning that must reduce for unpaid absence. |
SLAB | Currently uses the configured fixed/default amount. A selectable slab definition is not yet evaluated by the payroll V1 engine. | Do not use for a new live payroll until the required slab behaviour is configured and verified. |
SLAB is retained in the metadata model for expansion, but payroll V1 does not yet evaluate ranges. For production, represent the rule with a verified fixed, percentage or structured formula calculation.
What to enter in Calculation Base
Enter the component codes that must already have been calculated. Jhapu reads the expression, extracts each code and adds its current calculated amount. For this reason, calculation sequence is essential.
| Field | What it controls | Example |
|---|---|---|
| BASIC | Uses the calculated value of BASIC as the base. | DA = BASIC × 10% |
| BASIC+DA | Adds the calculated BASIC and DA values. | HRA = (BASIC + DA) × 20% |
| BASIC,DA,HRA | Non-alphanumeric separators are treated as separators; the three component values are added. | A percentage of gross components |
| Blank | The percentage base becomes zero. A FORMULA without metadata falls back through base/fixed logic. | Use only for a fixed/manual amount |
If HRA uses BASIC+DA, BASIC and DA must have smaller Calculation Sequence values than HRA. A code that has not yet been calculated contributes zero.
Toggle behaviour
| Field | What it controls | Example |
|---|---|---|
| Attendance Affected | When checked, any non-ATTENDANCE_PRORATED method is also multiplied by payable-days ÷ working-days. ATTENDANCE_PRORATED already applies that ratio directly. | Basic and DA: Yes; reimbursement: usually No |
| Included in Wages | Classifies the component as part of wages for policy/statutory reporting and future rule use. It does not independently alter payroll V1 arithmetic. | Basic: Yes |
| Included in PF Base | Marks the amount as part of the PF wage base. The current percentage calculation still needs an explicit Calculation Base such as BASIC+DA. | Basic and eligible DA: Yes |
| Included in ESI Base | Marks the amount as part of ESI wages. Use explicit component codes in the ESI calculation rule. | Eligible gross components: Yes |
| Included in Gratuity Base | Classifies the component for gratuity-base reporting/calculation design. | Basic and eligible DA: Yes |
| Taxable | Marks the component as taxable for payroll/tax reporting. It does not calculate income tax by itself. | Basic/HRA: according to policy |
| Affects Gross | Business classification for gross reporting. Component Stage currently determines the payroll V1 gross total. | Gross earnings: Yes |
| Affects Net Pay | Business classification for net-pay reporting. The current engine's Net Pay equation is driven by Component Stage. | Earnings/deductions/reimbursements: Yes |
| Affects CTC | Marks employee cost components, including employer contributions, for CTC design and reports. | Basic and employer PF: Yes |
For example, checking Included in PF Base does not make PF calculate automatically. Add the PF component to a scheme, select Percentage, enter the applicable base component codes and percentage, then verify the result.
Posting account and side
Component postings are aggregated across employees by ledger and side. Net Pay is credited separately to the scheme’s Net Salary Payable Account. Every configured component amount with a posting account contributes a posting line.
DR Salary Expense — gross earnings and eligible additions
DR Employer PF Expense — employer contribution
CR PF Payable — employee/employer PF liabilities as designed
CR ESI Payable — ESI liabilities
CR Advance Recovery — recovered employee advance
CR Net Salary Payable — total amount payable to employees
The exact entries depend on company accounting policy. The calculator refuses to prepare posting lines when total debit and total credit differ by more than ₹0.01.
Worked component examples
| Field | What it controls | Example |
|---|---|---|
| BASIC | GROSS_EARNING · RECURRING · FIXED or ATTENDANCE_PRORATED · attendance affected · debit Salary Expense. | ₹20,000 |
| DA | GROSS_EARNING · RECURRING · PERCENTAGE · base BASIC · attendance affected · debit Salary Expense. | 10% = ₹2,000 |
| HRA | GROSS_EARNING or ADDITION according to company policy · PERCENTAGE · base BASIC+DA. | 20% = ₹4,400 |
| MILK | ADDITION · RECURRING · FIXED · usually not attendance affected · debit selected expense ledger. | ₹1,000 |
| PF_EMPLOYEE | EMPLOYEE_DEDUCTION · RECURRING · PERCENTAGE · base BASIC+DA · credit PF Payable. | 12% = ₹2,640 |
| PF_EMPLOYER | EMPLOYER_CONTRIBUTION · RECURRING · PERCENTAGE · base BASIC+DA · appropriate expense/liability design. | 12% = ₹2,640 |
| ADVANCE_RECOVERY | EMPLOYEE_DEDUCTION. A code containing ADVANCE or LOAN triggers eligible recovery from active employee loan/advance records. | Instalment ₹2,000 |
| TRAVEL_REIMB | REIMBURSEMENT · VARIABLE · MANUAL/FIXED · not attendance affected. | ₹3,500 approved claim |
Before saving
- Use one meaning per Component Code and never reuse an old code for a new purpose.
- Confirm the stage because it determines the current gross/net equation.
- Confirm every base code is calculated earlier in the scheme.
- Use an active ledger and correct debit/credit side.
- Verify PF, ESI, gratuity and tax rules with the organisation’s payroll/accounting adviser.