1. In the Search bar, type salary structure and select the option Setup salary structures.
2. Click Add structure link given at the bottom of the page.
3. Specify the name of the salary structure.
4. Select a pay period type and provide a Description.
5. Click Next. Multiple salary heads appear on the screen. You can keep the required salary heads and delete the remaining by clicking on the Actions icon.
6. Click Enable Heads to add more salary heads if needed.
In the enterprise version of the application, you can set formulae and dependencies amongst heads.
Remember, the 2 special salary heads viz CTC (cost to company) and balancing head are automatically added in the salary structure and cannot be removed.
Once the salary structure is added, it can be assigned to any employee by clicking on Assign salary to an employee.