Employee Benefit Application

Employees are entitled to flexible benefits which they can either receive pro-rata (as part of their Salary) or as a lump-sum amount when they claim the benefit. In order to choose from various flexible benefits which an Employee shall receive on a pro-rata basis, the employee should create a new Employee Benefit Application.

To create a new Employee Benefit Application,

Human Resources > Payroll > Employee Benefit Application > New Employee Benefit Application

Here, Employee can view the Max Benefits as per the Salary Structure Assignment and then chose from the Earning Components which are part of the employee's assigned Salary Structure. They can also enter the amount which they wish to receive as part of their Salary Slip.

It is based on the Employee Benefit Application that the Max Benefit Amount will be distributed among the flexible earning components while generating the Salary Slip. If an Employee fails to submit the Employee Benefit Application before processing the payroll, the Max Benefit Amount eligible to the employee will be distributed proportionately to each of the flexible component present in the Employee's salary structure.

Note: Employees can only submit one Employee Benefit Application for a Payroll Period.

Employee Benefit Application should cover the full amount which the employee has to receive as per the Max Benefit amount on a pro-rata basis. However, if the Salary Structure of the employee consists of Salary Components which are to be paid on Employee Benefit Claim (Salary Component with Pay Against Benefit Claim), they are allowed to submit Employee Benefit Application excluding the amount allocated for such components.

Also, note that those components which are to be received based on Employee Benefit Claims can also be part of the application, but will only be disbursed lump-sum, as part of their salary when the Employee submits a claim for it.

Note: Normal Tax calculation does not include Flexible Benefits as in most cases these are exempted from Tax. To tax these components anytime before the last payroll, use Deduct Tax For Unclaimed Employee Benefits in Payroll Entry / Salary Slip while processing the Salary.