A structure with room above the half line
Under the Code on Wages, allowances that push Basic and DA below half of total pay are treated as wages for PF, gratuity and bonus anyway, so many service companies simply set Basic and DA slightly above half. A technician on ₹21,000 gross with Basic and DA at 55 percent gets ₹11,550 as Basic and DA, ₹4,200 as HRA and ₹5,250 as a special allowance, which comes to ₹21,000. Incentives and reimbursements stay out of the fixed structure and are added month by month as inputs.
Worked example: a technician's May payslip
Farhan installed 64 broadband connections in May. His company pays ₹120 for each installation above 50, so his incentive is (64 minus 50) x ₹120 = 14 x ₹120 = ₹1,680. His cluster met its SLA target, which adds a ₹1,000 bonus. His signed kilometre sheet shows 1,450 km on his own motorcycle, reimbursed at ₹3 a km, which is ₹4,350. His variable lines total ₹1,680 + ₹1,000 + ₹4,350 = ₹7,030.
The cluster in-charge approves the incentive and SLA list from the ticketing report, the team leader signs the kilometre sheet, and HR enters the incentive and bonus as incentive inputs and the fuel amount as a reimbursement input before the run. Each shows on the payslip as its own line.
Recoveries for tools, stock and SIM bills
Missing routers, a damaged power meter and a company SIM bill far above the plan are the usual recovery questions. Each counts as a deduction from wages under the Code on Wages; go through the permitted deductions before cutting anything, and never recover without the signed custody form and a written finding. Salary advances are simpler: recover them through the advance recovery deduction over the months agreed when the advance was given.
Statutory lines and payday
Payroll deducts the employee's PF, ESI and professional tax for the state of the hub, and adds the employer's PF, split into EPS and EPF, and employer ESI. Monthly wages must reach technicians no later than the 7th of the next month. Technicians rarely visit the hub, so the payslip PDF in the mobile app matters: it lets them check the incentive line the day salary lands, instead of calling the team leader.
How to set it up in ZeniaHR
- Enable Direct Payroll and enter each technician's monthly gross, with Basic and DA set a little above half of it.
- Each month, enter approved installation incentives and SLA bonuses as incentive inputs for each technician.
- Add the signed kilometre sheet amounts as reimbursement inputs, kept separate from salary.
- Put salary advances on an advance recovery schedule, and clear any other recovery against the Code on Wages deduction rules first.
- Lock the attendance month so paid days and approved overtime flow into the run, then finalize and release payment before the 7th.
Read more about payroll in ZeniaHR.
Roles this applies to
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Book a free demoSee pricingFrequently asked questions
How should fuel allowance be paid to field technicians?
Most companies reimburse fuel for the technician's own two-wheeler at a fixed rate per kilometre, based on a monthly kilometre sheet signed by the team leader. Add the amount as a reimbursement input in payroll, separate from salary, so it is visible on the payslip and kept on record.
Can a company recover the cost of lost tools from a technician's salary?
Only within the deductions allowed under the Code on Wages, and only with a signed custody record and a written finding on what was lost. Check the deduction rules first. Many companies handle a first loss through a warning and training rather than a salary cut.
How do installation incentives appear on a technician's payslip?
Work out each technician's incentive from the ticketing report after month end, get the cluster in-charge's approval, and key it in as that month's incentive input. It then appears as a separate earning line on the payslip PDF, which the technician can download from the app.