What do payroll component setups look like?

Last reviewed 12 October 2026 · Part of Employee payroll components

Example 1: Temporary Project Allowance

Scenario: An employee is assigned to a special project from March to August 2026 and receives a project allowance of 2,000/month.

Setup:

• Add a Fixed-Period component:
  • Component: Project Allowance
  • Amount: 2000
  • Start Date: 1-Mar-2026
  • End Date: 31-Aug-2026

Result: The 2,000 allowance appears on payslips from March through August only. From September onwards, it stops automatically.

Example 2: Convention Centre Levy for First Year

Scenario: New joiners must pay a Convention Centre Levy of 100/month for their first year only (joining date: 15-Jan-2025).

Setup:

• Add a Fixed-Period component:
  • Component: Convention Centre Levy
  • Amount: 100
  • Start Date: 15-Jan-2025
  • End Date: 14-Jan-2026

Result: The levy is deducted for 12 months and stops automatically after the first anniversary.

Important: Do NOT also check this component under Standard Components. If it is currently checked there, uncheck it and use Fixed-Period instead.

Example 3: Probation Period - Reduced Benefits

Scenario: During 6-month probation (Jan-Jun 2026), the employee gets a reduced housing allowance of 800. After probation, the permanent rate is 1,200.

Setup:

1. Under Standard Components, check Housing Allowance → enter 1200 → Save
2. Under Fixed-Period Components, add:
   • Component: Housing Allowance
   • Amount: 800
   • Start Date: 1-Jan-2026
   • End Date: 30-Jun-2026

Result: During Jan-Jun 2026, the fixed-period amount (800) takes priority. From July onwards, the standard amount (1,200) applies.

Example 4: Annual Bonus Period

Scenario: The company pays a performance bonus of 3,000 only during Q4 (October-December).

Setup:

• Add a Fixed-Period component:
  • Component: Performance Bonus
  • Amount: 3000
  • Start Date: 1-Oct-2026
  • End Date: 31-Dec-2026

Result: The bonus appears on Oct, Nov, and Dec payslips only. You can repeat this each year by adding a new fixed-period row for the next Q4.

Example 5: Salary Increment with Effective Date

Scenario: An employee currently earns 5,000 basic salary (standard). Effective 1-Apr-2026, they get a raise to 6,000.

Setup (Option A - Simple):

• On 1-Apr-2026, update the Standard Component amount from 5,000 to 6,000 and Save.

Setup (Option B - Pre-scheduled):

1. Keep Standard Components Basic Salary at 5000
2. Add a Fixed-Period component:
   • Component: Basic Salary
   • Amount: 6000
   • Start Date: 1-Apr-2026
   • End Date: 31-Dec-2099 (far future date)

Result with Option B: The fixed-period 6,000 overrides the standard 5,000 from April onwards. You can set this up ahead of time.

Note: Option A is simpler if someone will be available to make the change on the effective date. Option B is useful for pre-scheduling changes.

Example 6: Overlapping Fixed-Period Components

Scenario: An employee gets a Car Allowance of 500 from Jan-Jun 2026, and a higher Car Allowance of 800 from Apr-Oct 2026 (due to a role change).

Setup:

• Fixed-Period row 1: Car Allowance, 500, 1-Jan-2026 to 31-Mar-2026
• Fixed-Period row 2: Car Allowance, 800, 1-Apr-2026 to 31-Oct-2026

Result: 500/month for Jan-Mar, 800/month for Apr-Oct. Each row is independent with its own date range.

Tip: If you originally had a single row (Jan-Jun at 500), delete it and create two separate rows when the rate changes mid-period.

Example 7: Copy Setup from Existing Employee

Scenario: A new hire has the same role as an existing employee. You want to copy the same standard components.

Steps:

1. Open the new employee's Payroll Components tab
2. Under Quick Actions, select the existing employee from the dropdown
3. Click Copy to copy component selection only, or Copy with Amount to also copy the amounts
4. Review the checkboxes and amounts, adjust if needed
5. Click Save

Note: Copy only applies to Standard Components. Fixed-Period components must be added individually.