Payroll Items Type

In PrismERP, Payroll Item Type defines how each salary component is treated during payroll calculation. The system groups payroll items into three types:

• Income
• Addition
• Deduction

Each type defines how a payroll component is treated during salary processing. Income represents the main earning components of an employee, such as basic salary or fixed allowances, which form the core structure of the gross salary. Addition includes extra payments that are added on top of the regular salary, such as bonuses, overtime, or incentives, which may vary based on performance or conditions. Deduction refers to the amounts that are subtracted from the salary, such as tax, provident fund, or loan installments, which reduce the final payable amount. These three types work together to ensure a clear, structured, and accurate payroll calculation process within the system.