Salary Module: Full Overview – DaaI Business Suite
The Salary Module in DaaI Business Suite is designed to simplify, automate, and manage employee salary processing, tax deductions, and related compliance activities. It ensures accurate, efficient, and transparent payroll handling, with data inputs spread across multiple sections of the system.
This article provides a complete overview by consolidating all related processes, pre-requisites, sub-modules, and logic already documented in the following articles:
1. Purpose of the Module
The Salary module helps:
- Calculate salaries based on effective salary structure, working days, and unpaid leaves.
- Auto-deduct statutory amounts like TDS, PF, ESIC, and Professional Tax.
- Handle mid-month joining/resignation.
- Record salary breakup and maintain changelogs for every revision.
- Comply with Indian financial year handling for taxes.
2. Key Processes
A. Add or Update Salary Data
- Navigate to either Users or Employee module.
- Ensure you’ve added salary records with the following fields:
- CTC, Basic %, HRA %, Conveyance, Variable %, Emp PF, Empr PF, Emp ESIC, Empr ESIC, Month, Year
- Effective Date determines from when the salary becomes active.
- Revised salary should be added as a new record. System uses most recent record applicable for that month.
- Guide: Add Salary Data
B. TDS Setup
- TDS must be entered yearly. Go to the TDS Entry Section under each user.
- It is auto-distributed across remaining months of that financial year.
- System handles redistribution if added mid-year.
- Guide: TDS Calculation
C. Generate Salary
- Go to HRM > Salary > Generate Salary
- Select Month & Year
- System will auto-check for:
- Valid salary record
- Pending leave approvals
- If employee is marked active (joined before, not resigned yet)
- TDS, unpaid leaves, deductions, and leave encashment eligibility
- Finalize and click Create Salary
- Guide: Generate/Create Salary
3. Salary Calculation Logic
A. Per-Day Salary Calculation
- If ‘Calculate Salary Based on Working Days’ = Yes → Paid Days = Working Days – Unpaid Leaves
- If No → Paid Days = Calendar Days – Unpaid Leaves
B. Paid Days Adjustments
- Mid-month joining/resignation → pro-rata paid days
- Unapproved leaves or unpaid leave → reduces paid days
C. Component-wise Calculation
| Component | Formula |
|---|---|
| Basic | (Basic % of Monthly CTC) × Paid Days / Total Days |
| HRA | (HRA % of Monthly CTC) × Paid Days / Total Days |
| Conveyance | Fixed Amount × Paid Days / Total Days |
| Variable Pay | (Variable % of Monthly CTC) × Paid Days / Total Days |
| Leave Encashment | Encashable Days × (Basic / Total Days) |
D. Deductions
| Deduction Type | Logic |
|---|---|
| TDS | Monthly portion of annual amount entered |
| Professional Tax | Based on salary slabs in code table |
| PF (Emp + Empr) | Enter manually |
| ESIC (Emp + Empr) | Enter manually |
| Unpaid Leave | Deducted using per-day salary basis |
E. Final Salary
- Gross Salary = Sum of all components
- Total Deductions = Sum of all deductions
- Net Salary = Gross – Deductions
4. Special Cases Handled
- Multiple Salary Data in Employee Records: Picks latest applicable one.
- Mid-month Join/Exit: Pro-rata salary is auto-calculated.
- Unpaid or Overused Leave: Reduces paid days, may trigger extra deductions.
- Variable or Bonus: Included if marked for that salary month.
5. Stored Information
- Per employee salary breakup
- Month & Year of each salary
- Basis of calculation (Calendar or Working Days)
- Changelog of salary updates
- TDS ledger/challan tracking
6. Editing Salary Data Of Employees
From Employee Module:
- Go to HRM → Employee List
- Click on any employee
- Click Cyan Edit Button
- Modify salary details
- Click Update (top-right)
From User Module:
- Go to User Management → User List
- Click on any user
- Use Edit to change salary values
- Save changes
For full guide: Add Salary Data
7. Final Note
Ensure:
- All salary data is correctly filled
- TDS (if applicable) is updated yearly
- Leaves are approved
- Salary policies (calendar vs. working days) are set correctly in company settings
✅ Tips
- Any mismatch or missing record will result in incorrect or failed salary generation. Always cross-check before running payroll.
- Professional Tax is auto-fetched from Codes Table (not entered manually every time).
- System retrieves Company Details during salary generation.
- Before updating leaves, the system takes a backup of leave records.
- If salary for a month already exists for an employee, system skips regeneration.
- Additional salary components also supported: Travel, Commission, Ex-Gracia, Other Allowance.
- PF applies only if Basic ≤ ₹15,000; ESIC applies if Gross ≤ ₹21,000.
- After salary is generated, allowances are auto-marked as paid.
- When salary with TDS is generated, system auto-creates a TDS Challan (Unpaid) and captures a changelog.
- Salary record updates are logged in changelog for audit.