**In this section, you define the salary groups for your employees which will be used in the Payroll module to generate a one-click salary. ****The payroll module uses a basic salary to calculate the net salary per month.**

**Goto****Manager >Settings > Salary Groups > New.**- Fill the
**Group name**and**description**. The same salary group can be assigned to multiple employees to have the same net salary. **The salary components**section is the most important for the payroll module to work properly. Here you can add Salary components like**Earnings**(Like HRA, Medical Allowance) and**Deductions**(Loan EMI, PF). Earnings will be added to the salary and Deductions will be subtracted to form a net salary. An example is attached below.- There is a column named
**Formula.**In this, you can define formula based on a basic salary like HRA will be 40% of Basic salary so the formula will be 40x$basic_salary/100. You can define your own formula based on basic salary.

You can also test the above salary components and see the net salary calculated by it. Try different Basic Salary and you will see that Calculated Net Salary changes based on the above formula. This section is just to test the formula and the basic salary here is just an example. You need to define the Basic salary of each employee in the Payroll Module.