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By: Sree

How to Configure Salary Structure in Odoo 14

Functional Odoo 14 Human Resource

As salary management is an essential part of any company, the employer requires an efficient salary management system to meet all requirements. Odoo Payroll comes to the rescue of an organization at this juncture. This helps the organization and especially its human resources and accounting wings to easily manage payroll. 

The salary of the employees of an organization or a company varies based on their job position, experience, and skills.  Management of the payroll of a firm becomes tougher as the salary scale of different employees is different. Salary categorizations are made based on different factors including experience, expertise, and the position. Manual management of salary is very difficult for human resources. If an organization is depending on the Odoo Payroll management system this herculean task can be converted into a cool game. 

In this blog, we can discuss how to set up salary structure and Salary rules for an organization using Odoo Payroll.

What you have to do to make use of this facility is to install Payroll from the Odoo Apps.


Set up Salary Rule

Odoo Payroll gives easy assistance to create salary rules. Salary rules are the basic conditions required for fixing the salary of an employee. As the salary of an employee and worker may vary it requires a specific set of rules. With Odoo Payroll we can create Salary rules. 

To avail of this feature Go to Payroll -> Configuration -> Salary -> Rules


On entering the page, the user can find the Create button. Here, we can find a few rules listed below as we have already created a few rules. Now, we can click on the Create button to create a new rule. 


As we know, a salary structure is prepared based on various salary rules. A salary structure will have different fractions including basic pay, various allowances, and gross pay, and so on.


In the above given create form we have different fields as given below
Name: Name of the pay 
Category: Category of the pay. It could be basic, allowance or bonus
Other details, including code, sequence, and salary structure can also be provided. These categories will later appear on the payslip


In the Create Form, we have to fill information under the tabs - General, description, and accounting

General Information 

Conditions based on A user will have to choose the condition from these- Always True, Range, and Python expressions



The salary calculation will be made based on a few factors including  Percentage, Fixed amount, Python code


Company Contribution


Description Tab

Give any description if required


Accounting Tab

Give various information including debit and credit amount for the preparation of salary rule. This info can ease salary management. 


Salary Structure

Now, let us look into the Salary Structure. It is a mandatory factor that is required for computing the salary of an employee and for preparing a payslip for the employee. We make use of the already set salary rules to prepare the salary structure.

In an organization, the job position of the employee, contract type, and the experience of the employee is taken into account while preparing the salary structure.  Or else, we can say that the salary structure is a combination of different salary categories such as basic pay, gross pay, net pay, and allowances.

Salary Structure Type

Every organization maintains different salary structures for their employees. The below-given image will give an idea about the type.

The type of employment and the experience are considered to prepare salary structure type.

This is how the salary structure is configured using Odoo 14

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