What is a Payband?
A payband is a salary range grouping method for employees. It's useful when specific salaries can't be tied to particular paygrades, but you know the general range. For example, an "Associate" payband might cover salaries from 1M to 5M.
When you have set up paybands in PaidHR, onboarding new employees becomes remarkably straightforward. All you need to do is select the appropriate payband for the new hire and enter their specific gross salary. The system then automatically adds them to your payroll with minimal additional configuration required.
Follow these steps to set up a new payband:
Head to the Menu on the left side of the screen and scroll down to find Compensation.
Scroll to Payroll and click the downward arrow.
Select Configuration.
Click Payband at the top of your screen.
Choose Create new payband.
Enter the following details to create a Payband:
Payband name: assign a name to your payband. Don't worry if you're unsure - PaidHR can generate a default name (e.g., Payband 16) which you can edit later.
Alias: an optional, employee-friendly name that will appear on their profiles. Leave this blank if it doesn't apply.
Currency: select the currency used for salaries in this payband.
Taxable status: Choose whether salaries in this payband are subject to tax deductions.
Annual pay:
Select Gross if the payband will include tax and statutory benefits deductions.
Select Net if this payband will have zero deductions.
Lower limit: the minimum annual salary for this payband.
Upper Limit: the maximum annual salary for this payband.
After filling in these details, click Next to add allowances to your payband.
Click the search bar to select allowances linked to the paygrade.
Customize each allowance and establish calculations (percentage or specific amount).
Choose the pay schedule for allowance distribution.
Click on Next to choose Statutory benefits that are in this paygrade, skip this step if otherwise.
Select the statutory benefits linked to the payband.
Customize each statutory benefit, including employee deduction, employee voluntary deduction and employer contribution.
Specify if the deduction applies to the entire gross or specific allowance.
Click Next to save your new payband.