Salary Structure and Salary Breakup in Payroll

Every employee paid through Direct Payroll has a salary structure: the monthly gross and the date it took effect. HR enters the gross once, and each run splits the earned amount into earning heads using the company's pay model, Basic and HRA, plus DA and other allowance where the pay model builds them. A new structure replaces the old one, which is kept as superseded, so revisions stay traceable, and each month's pay is prorated for the days actually paid.

How it works

Open Direct Payroll, go to Structures and add a salary structure with the employee, the monthly gross and an optional note.
The structure takes effect from the day it is saved. Any older active structure for that employee is superseded automatically.
Each run splits the earned gross into Basic, HRA and the other heads your pay model defines, and the rupee split always adds up to the gross.
The split is prorated by paid days, so an employee paid 30 of 31 days earns 30/31 of every head.
Use Supersede to stop paying a structure, for example before an exit, and add a new structure for a revision.

What you can set

Monthly gross per employee, in rupees.
Pay model in Settings, Statutory Payroll Rules: Basic and HRA percentages, with DA and other allowance where the pay model builds them.
A live preview of the split on a sample salary in the pay model settings, before you save.
Supersede to retire a structure; adding a new one supersedes the old one automatically.
Structures list showing employee, monthly gross, status and effective date.
Payslip heads such as DA and Special Allowance print only when they carry an amount.

Why the split matters for PF and the 50 percent rule

Employee PF is worked out on Basic plus DA, so the split decides the PF amount for anyone below the PF wage ceiling. It also decides compliance with the wage definition. Under the Code on Wages, basic pay plus dearness allowance must be at least half of total remuneration, and allowances above that line are added back to wages, which raises the PF, gratuity and bonus base. Read the 50 percent wage rule and use the pay model preview to see the split before saving.

Worked example: a revision and a short month

Pooja Nair, an HR executive in Kochi, has had a structure of ₹28,000 a month since April 2026. Her increment to ₹31,000 applies from October. On 1 October, before the October run is created, HR adds a new structure of ₹31,000. The April structure moves to superseded with its end date, and the October run uses the new gross.

In October Pooja takes one day of leave without pay, so she is paid 30 of 31 days. Her earned gross is ₹31,000 x 30 / 31, which is ₹30,000, split across the heads in the same proportion. Had the increment been backdated to September after September's run was sealed, HR would add ₹3,000 as an arrears input in October.

Keeping structures and offer letters in step

Offer letters often quote annual CTC, which includes the employer's PF and ESI; the structure needs the monthly gross. Work out the gross first and keep the working with the offer letter. Because a structure takes effect on the day it is saved, add revisions before creating the month's run. For backdated increments, add arrears as a payroll input with a note naming the months, rather than editing history.

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Frequently asked questions

What is a salary structure in payroll?

A salary structure is the agreed monthly pay of an employee and how it divides into earning heads such as Basic and HRA. In ZeniaHR it holds the monthly gross and its effective date, and each payroll run splits the earned gross into heads using the company's pay model.

How do I record a salary increment?

Add a new salary structure with the revised monthly gross before creating that month's run. The previous structure is superseded automatically and kept on record. If the increment is backdated to a month already paid, add the difference as an arrears input in the current month.

Can I enter annual CTC instead of monthly gross?

Enter the monthly gross. Annual CTC usually includes the employer's PF and ESI, which are not part of what the employee earns each month, so dividing CTC by 12 overstates the gross. Work out the monthly gross from the offer, then enter it as the structure.

Does the salary structure decide the PF amount?

Yes, through the split. Employee PF is the PF rate on Basic plus DA, with Basic plus DA capped at the PF wage ceiling in your settings. Two employees on the same gross can have different PF if your pay model splits their pay differently.