Salary structure is the sum total of the Compensation agreed upon as payment to the employee for fulfilling the employment terms. It includes components such as Basic, Conveyance, and as many components the organization wishes to have. HR also has to put in place a promotion and increment policy in the organization.
The most common components in an Indian salary structure include Basic, House Rent Allowance (HRA), Conveyance, Provident Fund , IT (Income Tax), Special Allowance, Professional Tax (PT), etc.
Whenever new employees join an organization, the HR department shares their salary structure and the date of joining with the payroll processor. When an employee is confirmed or gets a promotion, there can be changes in this structure. In this case, HR shares a revised structure and effective date with the payroll processor.
Check out some examples of salary structures that most companies adopt.