How to Manage Payroll Component Settings and Their Rates (Payroll Component)

Updated July 16, 2026 10:54

Payroll Component refers to payroll elements other than the basic salary that either increase or decrease the employee's Take Home Pay.

Payroll components can consist of:

Allowance: Components that increase employee income beyond the basic salary.
Deductions: Components that reduce employee income.
Benefit: Components covered by the company for employees but do not increase the employee's take-home pay, for example: BPJS Employment and BPJS Health.

Make sure you have previously set up the payment schedule. Below are the steps to manage payroll component settings:

Go to the Settings menu.
Select Payroll, then select Payroll component.

Fill in payroll components other than the basic salary that increase or decrease the employee's take-home pay in the Payroll Component section. There are 3 component categories: Allowance, Deductions, and Benefits.

No	Menu	Description
1	Allowance	This component increases employee income beyond the basic salary. To add an allowance as needed, click "Add Allowance". To learn how, read Part A. To learn how, read Part A.
2	Deductions	This component reduces employee income, such as late penalties. To add a deduction as needed, click "Add Deduction". To learn how, read Part B.
3	Benefit	This component represents benefits, advantages, or additional rewards outside the basic salary received by employees from the company and does not increase or decrease employee income, such as BPJS Employment and BPJS Health. To learn how, read Part C.

If you want to add a fixed number (Absolute) for formula purposes, click "Add Custom Rate". This number is used if there is a rate change on certain payroll components, so you do not need to change the entire formula, just add the latest custom rate amount with the appropriate effective date. To learn how, read Part D.
If payroll input uses foreign currency, click "Add Currency Rate" to add currencies. To learn how, read Part E.

Employee salary payments will always be in Indonesian Rupiah (Rp), so employees receiving their basic salary in foreign currency will have their take-home pay calculated as the basic salary amount multiplied by the currency rate.

A. How to Add an Allowance

Allowance is a component that increases employee income beyond the basic salary. Allowances can include transportation money, meal allowances, holiday bonuses (THR), and more.
Here are the steps to add an allowance:

In the Payroll Component section, click “Add Allowance" to add an allowance.
Enter the allowance name in the Allowance Name field. Then, fill in the allowance policy amount in the Amount field. Select Default in the Currency dropdown to use IDR or choose foreign currencies (SGD, GBP, USD) available in the Currency dropdown. Next, click on Payroll Payment Schedule to select a payroll cut-off different from the default (the setting you configured in the payment schedule).
Select the allowance period given to employees in the Type section.
- Monthly: The payroll component amount is calculated monthly. If enabled, the options Default and Prorate appear.
  - Default: If enabled, the created allowance component will automatically be assigned to employees.
    There are 2 options you can use:
    A. Assign Allowance for New Employee: Yes
    4b
    With this option, the allowance will automatically be assigned to all new employees (new joiners).
    B. Assign Allowance for New Employee: Select Filter
    This option is chosen if the allowance applies only to some new employees (new joiners) in certain divisions or positions. You can adjust this based on Organization/ Job Position/ Job Level/ Branch/ Payment Schedule for which this allowance will be given.
  - Prorate: If enabled, employees who join mid-cutoff period will have the payroll component calculated proportionally according to the prorate rules set.
- Daily: The payroll component amount is calculated daily, such as overtime, attendance allowance, late penalties, and others. If enabled, the options Default and Maximum Amount appear.
  - Default: The default function here is the same as the default in the monthly tab.
  - Maximum Amount:
    This feature limits the maximum allowance amount. There are 3 options:
    - Not Use: No maximum amount limit.
    - Basic Salary Percentage: Determined as a percentage of salary, e.g., 60% means the payroll component amount is 60% of the basic salary.
    - Custom Amount: The payroll component amount is a fixed number set by the user.
    - Payroll Component Non-formula: Additional setting allowing users to set a maximum amount for each component (excluding usage, basic salary percentage, and custom amount). In this case, special settings are needed to define the maximum amount based on other payroll components.
      
      Important
      Please contact our support team first to enable this feature.
  - One Time: This component amount is variable and must be input by the user monthly during the run payroll process. The component amount resets to zero every month. If enabled, a Bonus option appears that affects tax calculations.
    - Bonus: If enabled, the December 1721-A1 report will classify it as gross income point 8 (tantiem, bonus, gratification, production services, and THR). If not enabled, the bonus component is included as gross income point 3 (other allowances, overtime pay, etc.).
Select the tax policy on the allowance in the Tax section.
- Taxable: The allowance component is included in tax calculation. Click “Add rules” to set non-taxable and taxable limits on the Natura component. If there are no tax limits, you may skip this step.
  
  When creating or configuring a component with the Taxable option, you can add tax limit rules with two options:
  
  1. Based on Amount (Component amount)
  Example settings with conditions “Is less than”, “3,000,000”, “1”, and “Year”.
  
  This means tax is only applied to component amounts exceeding the limit (3,000,000 in this example) within one period (maximum 1 year). Before reaching the limit (is less than), the component is considered non-taxable.
  
  The “Component amount” option applies only within one tax year, meaning if you select a 1-year tax period, the component amount determining taxable status only applies to that tax year.
  
  2. Based on Average Gross Income
  Example settings with conditions “Is greater than”, “100,000,000”, “12”, and “Month”.
  
  With these settings, the Natura component is taxed only if the employee's average gross income over the past months (up to 12 months back) exceeds the set limit (is greater than), here 100,000,000.
  
  The “Average gross income” option applies across years. For example, if you select a 12-month/1-year period, the next year will consider the average gross income over the past year, including the previous year.
  You can also click “Import gross income” to download, fill out, and re-upload a gross income template to ensure more accurate Natura tax limit calculations based on average gross income.
  
  Download the template by clicking “Import Gross Income Template”, then fill it with historical employee income data from previous months. Be sure to follow the instructions by hovering over the column headers.
  
  Then upload the completed template by clicking “Select file” (xlsx format, max 5 MB). After uploading, click “Import”.
- Non Taxable: The component is not included in tax calculations.
Click "Formula" if the allowance policy is calculated with a formula. This setting is to calculate the allowance amount based on specific formulas or criteria.

Important
Contact our support team at support-hr@mekari.com or specialists for assistance in creating formulas.
Click "Confirm" to save.

B. How to Configure Deductions for DPLK, Zakat, and Others

Deduction is a component that reduces employee income. You can add deductions according to company policy, for example: pension fund deductions, zakat, or late penalties.

Below are example steps to configure pension fund and zakat deductions:

I. DPLK

To configure pension fund deductions, in the Payroll Component section, click "Add Deduction" to add a deduction or income reduction for employees.
Enter the pension deduction policy name in the Name field and the deduction amount in the Amount field.
Check "DPLK" if you want to apply pension deductions.
Select the deduction type for DPLK.

There are two types:
- Monthly: The payroll component amount is calculated monthly (there is a deduction each month).
- One time: The amount is variable and must be input by the user monthly during the run payroll process. The one-time component amount resets to zero each month.
Next, you can check Default if you want all employees to have the DPLK deduction. Check Pro Rate if you want the deduction to be prorated or check Backpay if the component includes backpay (retroactive payment).

If you check Default, the following information will appear.

Select Yes if you want all employees to have the deduction or Select Filter to choose employees from certain organizations or positions.
Select the Tax setting for DPLK, whether it is paid by the employee (By Employee) or the company (By Company).
Click "Formula" if the deduction policy is calculated with a formula.
Click "Confirm" to save.

II. Zakat

To configure zakat deductions, in the Payroll Component section, click "Add Deduction" to add a deduction or income reduction for employees.
Enter the deduction policy name in the Name field and the deduction amount in the Amount field.
Check "Zakat" if you want to apply zakat deductions.
Select the deduction type for Zakat.

There are two types:
- Monthly: The payroll component amount is calculated monthly (there is a deduction each month).
- One time: The amount is variable and must be input by the user monthly during the run payroll process. The one-time component amount resets to zero each month.
Next, you can check Default if you want all employees to have the zakat deduction. Check Pro Rate if you want the deduction to be prorated.

If you check Default, the following information will appear.

Select Yes if you want all employees to have the deduction or Select Filter to choose employees from certain organizations or positions.
Click "Formula" if the deduction policy is calculated with a formula.
Click "Confirm" to save.

III. Other Deductions

Enter the deduction policy name other than DPLK or Zakat, for example ‘Late Penalty’ in the Name field and the deduction amount in the Amount field.
Select foreign currency if using a currency exchange rate other than IDR in the Currency field.
Click "Payroll Payment Schedule" to select a payroll cut-off schedule different from the default schedule.
Select the deduction period given to employees in the Type section.

- Monthly: The deduction policy applies monthly.
- Daily: The deduction policy applies daily.
- One Time: The deduction policy applies only occasionally.
Select the tax policy on the deduction in the Tax section.
If you select Taxable, you can choose the tax deduction type in the Tax type section.

- Same as Salary: Tax follows the Employee profile settings.
- Gross: Tax is deducted from the employee's salary.
- Gross Up: Tax is borne by the company by adding a tax allowance.
- Netto: Tax is borne by the company as a tax allowance.
If you check "Default", new employees will have rights to this deduction policy.
Click "Formula" if the deduction policy is calculated with a formula.
Click "Confirm" to save.

C. How to Add a Benefit

Benefit components are benefits, advantages, or additional rewards outside the basic salary received by employees from the company and do not increase or decrease employee income, such as BPJS Employment and BPJS Health. Therefore, BPJS Employment and BPJS Health benefits cannot be deleted and can only be edited.

Here are the steps:

In the Payroll Component section, click "Add Benefit" to add an employee benefit.

A pop-up will appear where you can fill in the empty fields.

Click "Confirm" to save, or “Close” to cancel adding a benefit.

You can modify benefit settings by clicking on the benefit you want to change according to the explanations above.
You can also edit BPJS Employment and BPJS Health benefit components by clicking on these benefits.

The pop-up that appears will differ from other benefits.

No.	Field/Button Name	Description
1	Calculation	Choose how BPJS is calculated using a custom Formula you can adjust yourself or Normal Calculation (calculation based on the latest BPJS Employment/Health regulations).
2	Payroll Component Included	Select and set payroll components counted together with this BPJS Employment/Health benefit. Then, click “Add”. The selected payroll components included will be listed under Settings. You can remove them by clicking the “cross” icon.
3	Setting	Include Backpay: Click to include payroll that is pending or unpaid to employees for certain periods (Backpay). Full Salary: This component is a benefit for employees receiving full salary. Prorate Salary: This component is a benefit for employees receiving prorated salary (working part-time).
4	Others Component	Include other components here if needed.
5	Save	Once the BPJS Employment/Health benefit component is fully edited, click “Save”.

Click "Confirm" to save, or “Close” to cancel adding a benefit.

D. How to Add a Custom Rate

This feature allows you to add a fixed number (absolute) for formula creation purposes. This number is used if there is a rate change on certain payroll components, so you do not need to change the entire formula, just add the latest custom rate amount with the appropriate effective date.

Important
Contact our support team at support-hr@mekari.com or specialists for assistance in creating formulas using the custom rate function.

Here are the steps:

In the Payroll Component section, click "Add Custom Rate".
Enter the custom rate name in the empty Name field. You can select an existing custom rate or create a new one by clicking the “down arrow” icon. Then, set the effective date of the rate in the Effective Date field and enter the rate value in the Amount field.

Click "Confirm" to save.

The created Custom Rate will appear in the list below. You can “Edit” or “Delete” created Custom Rates.

E. How to Add a Currency Rate

Setting the correct currency exchange rate (currency rate) is crucial to ensure accuracy in multi-currency payroll. With the Add currency rate feature in Mekari Talenta, you no longer need to manually adjust currency fluctuations, which risks damaging accuracy and causing discrepancies in the General Ledger. Below is how to add currency rates and activate conversion methods, either keeping the original currency (Keep in Original Currency) or automatically converting to IDR (Convert to IDR) directly and conveniently within Mekari Talenta.

In the Payroll Component section, click "Add currency rate".

Then, fill in the required information to create a new Currency rate. Enter the rate value in the Amount field.

No.	Field/Button Name	Description
1.	Currency name	Click the “down arrow” (dropdown) in this field, then select or type the foreign currency name you want to add (example in image: Swedish Krona).
2.	Effective date	Click this field and set the starting date for the currency rate you entered (example in image: July 13, 2026).
3.	Symbol	Enter the currency symbol. This symbol functions as a prefix for currency amounts when entering money values in other system settings to match international standards.
4.	Applied by	You can select one of the two radio button options: Amount IDR or Actual Currency. Explanation: Amount IDR: Enter the value of 1 Foreign Currency = How many Rupiah (most commonly used because it is easier to read). Actual Currency: Enter the value of 1 Rupiah = How many Foreign Currency units.
5.	Amount	Enter the nominal or exchange rate of the foreign currency depending on your choice in item 4. Since Amount IDR is selected, enter 1,871.32 (Rupiah) for 1 Swedish Krona.

Click "Confirm" to save.
The created Currency Rate will appear in the list below. You can “Edit” or “Delete” created custom rates except for default currencies such as Indonesian Rupiah, Malaysian MYR (Ringgit), and Singapore Dollar.

That concludes the explanation on how to manage payroll component settings and their rates. Next, you can learn how to run payroll here.

No.	Field/Button Name	Description
1	Name	Enter the benefit name here.
2	Amount	Enter the benefit amount here.
3	Currency	Default currency is IDR (Rupiah). To change the currency, click the “down arrow” icon.
4	Payroll Payment Schedule	The default payroll schedule follows the payroll cut-off schedule you previously set. Learn how to set up payroll payment schedules here. If you do not want to use the default cut-off schedule, click the “down arrow” icon to select another payroll payment schedule.
5	Type	Select the benefit period given to employees. Monthly: The payroll component amount is calculated monthly. If enabled, the options Default and Prorate appear. Default: If enabled, the created allowance component will automatically be assigned to all employees with Assign Allowance for New Employee set to Yes. If the benefit applies only to certain divisions or positions, you can use the Assign Allowance for New Employee filter button, then choose “Select Filter” and select based on Organization/ Job Position/ Job Level/ Branch/ Payment Schedule where this benefit will be given. Prorate: If enabled, employees who join mid-cutoff will have the payroll component calculated proportionally according to the prorate rules set. Daily: The payroll component amount is calculated daily, requiring employee attendance (attendance code H). If the employee is absent, no payment is made. If enabled, the options Default and Maximum Amount appear. Default: The default function here is the same as the default in the monthly tab. Maximum Amount: Not Use: No maximum amount. Basic Salary Percentage: Determined as a percentage of the salary, e.g., 60% means the payroll component amount is 60% of the basic salary. Custom Amount: The payroll component amount is a fixed number set by the user. One Time: This component amount is variable and must be input by the user monthly during the run payroll process. The component amount resets to zero each month. If enabled, a Bonus option appears that affects tax calculations. Bonus: If enabled, the December 1721-A1 report will classify it as gross income point 8 (tantiem, bonus, gratification, production services, and THR). If not enabled, the bonus component is included as gross income point 3 (other allowances, overtime pay, etc.).
6	Tax	Select the tax policy on the benefit in the Tax section. Taxable: The benefit component is included in tax calculation. Non Taxable: The component is not included in tax calculation.
7	Tax Type	If this benefit is taxable, you can choose one of the tax types applied. Same as salary: Tax is the same as salary tax. Gross: Employee bears the income tax amount. Gross up: Employee receives tax allowance equal to the tax deducted. Netto: Company bears the employee's tax. Click "Formula" if the benefit policy is calculated with a formula. This setting calculates the benefit amount based on specific formulas or criteria. Important Contact our support team at support-hr@mekari.com or specialists for help with formula input.

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