Salary Setup
The Salary module (in Pay & Expenses) is where you build up pay from its parts and assign a salary to each employee. It has three tabs.
Salary Component Types
A component type is a building block of pay — Basic, Allowance, Hourly, and so on. Each has a name and a code.

Click Add New to create one. Most companies only need a handful.
Salary Components
The Salary Components tab turns those types into concrete, reusable items — for example "Basic Salary" or "Transport Allowance" — that you can attach to employees.
Salary (per employee)
The Salary tab lists each employee's pay made up of the components above.

To set someone's salary, add the components that apply to them with their amounts. This is what payroll uses when it calculates each person's pay.