Allowances are additional payments included in employees' monthly salaries, separate from their basic salary. They are intended to cover specific expenses such as housing, transportation, meals, etc.
Create New Allowance
PaidHR comes with default allowances, but you also have the option to add yours. To add a new allowance:
Navigate to the Menu on the left side of the screen and scroll down to find Compensation.
Click on the downward arrow next to Payroll to reveal additional options.
From the list of options, select Configuration.
At the top of your screen, click on Allowances.
Click on Create new allowance.
Choose a name for your allowance.
Select the Pay type: Routine allowances are paid during regular payroll cycles and Special allowances are paid during off-cycle payroll cycles. Choose Special only if you intend to configure this allowance to be paid outside the default pay schedules.
Select Yes if the allowance is taxable, NO if it is non-taxable
Click Save to finish.
Edit Allowance
Need to tweak an existing allowance? Here's how:
Navigate to Payroll - Configurations - Allowance
Find the allowance you want to change and click on the three-dotted lines next to it
Choose Edit from the dropdown menu.
Make the changes to the allowance and click on Save to finish
Any changes you make to an allowance will apply to all employees in the Pay grades/ Paybands where that allowance is used.