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

Updated April 02, 2026 07:36

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

Payroll components can consist of:

Allowance: Components that add to the employee's income outside of the basic salary.
Deductions: Components that reduce the employee's income.
Benefit: Components borne 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 a 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 either increase or decrease the employee's take-home pay in the Payroll Component section. There are 3 component sections: Allowance, Deductions, and Benefits.

No	Menu	Description
1	Allowance	This component adds to the employee's income outside of 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 the employee's income, such as late deductions. To add a deduction as needed, click "Add Deduction". To learn how, read Part B.
3	Benefit	This component is in the form of benefits, advantages, or additional rewards outside the basic salary received by employees from the company and does not increase or decrease the employee's income, such as BPJS Employment and BPJS Health. To learn how, read Part C.

If you want to add a fixed amount (Absolute) for formula purposes, click "Add Custom Rate". This number is used if there is a change in the rate for a certain payroll component, so there is no need to change the entire formula; just add the latest custom rate amount by adjusting the effective date. To learn how, read Part D.
If payroll input uses foreign currency, click "Add Currency Rate" to add a currency. To learn how, read Part E.

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

A. How to Add an Allowance

Allowance is a component that adds to the employee's income outside of the basic salary. Allowance can be transportation money, meal allowance, holiday allowance (THR), and so on.
Here are the steps to add an allowance:

In the Payroll Component section, click “Add Allowance" to add an allowance.
Specify the allowance name in the Allowance Name field. Then, enter the allowance policy amount in the Amount field. Choose Default in the dropdown Currency to use IDR or use available foreign currencies (SGD, GBP, USD) in the dropdown Currency. Then, click the Payroll Payment Schedule section to select a different payroll cut-off than the default (as set in the payment schedule).
Choose the allowance period given to employees in the Type section.
- Monthly: The payroll component amount is calculated monthly. If activated, options Default and Prorate appear.
  - Default: If activated, 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 joiner).
    B. Assign Allowance for New Employee: Select Filter
    This option is chosen if the allowance applies only to some new employees (new joiner) in certain divisions or positions. You can adjust this rule based on Organization/ Job Position/ Job Level/ Branch/ Payment Schedule to determine who receives this allowance.
  - Prorate: If activated, for employees joining mid-cut-off period, the payroll component will be automatically calculated proportionally according to the predetermined prorate rules.
- Daily: The payroll component amount is calculated daily, such as overtime, attendance allowance, late deductions, etc. If activated, 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 allowance amount to a certain number. There are 3 options:
    - Not Use: No maximum amount.
    - Basic Salary Percentage: Determined by salary percentage, for example, 60% means the payroll component amount is 60% of the basic salary.
    - Custom Amount: The payroll component amount comes from a predetermined fixed number.
    - Payroll Component Non-formula: Additional settings allowing users to set maximum amounts for each component (excluding usage, basic salary percentage, and custom amount). In this case, users require special settings to set maximum amounts based on other payroll components.
      
      Important
      Please contact our support team first to enable this feature.
  - One Time: This component amount is not fixed and must be input by the user each month during the run payroll process. The amount will automatically reset to zero each month. If activated, a Bonus option will appear, affecting tax calculations.
    - Bonus: If activated, on the December 1721-A1 report, it will be classified under gross income point 8 (tantiem, bonus, gratuity, production services, and THR). If not activated, the bonus component is included as gross income point 3 (other allowances, overtime pay, etc.).
Choose the tax policy for the allowance in the Tax section.
- Taxable: The allowance component is included in tax calculations. Click “Add rules” to define non-taxable and taxable limits on the Natura component. If there are no tax limits, you can skip this step.
  
  When creating or setting components with the Taxable option, you can add tax limit rules with two choices:
  
  1. Based on Nominal (Component amount)
  Here is an example with conditions set to “Is less than”, “3,000,000”, “1”, and “Year”.
  
  This means tax is only applied to the component amount exceeding the set limit (3,000,000 in the 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 and does not cross years. For example, if you select a 1-year tax period, the component amount determining taxable status applies only within that tax year.
  2. Based on Average Gross Income
  Here is an example with conditions set to “Is greater than”, “100,000,000”, “12”, and “Month”.
  
  This means the Natura component is taxable only if the employee's average gross income over the last several months (up to 12 months back) exceeds the set limit (is greater than) of 100,000,000 in the example.
  
  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.
  Additionally, you can click “Import gross income” to download, fill out, and re-upload the gross income template for more accurate Natura tax limit calculations using average gross income.
  
  Download the template by clicking “Import Gross Income Template”, then fill it with historical employee income data from previous months. Make sure to follow the instructions by hovering over the column headers.
  
  Then upload the completed template by clicking “Select file” (xlsx format, max size 5 MB). After uploading, click “Import”.
  
  Non Taxable: This component is not included in tax calculations.
Click "Formula" if the allowance policy is calculated using a formula. This setting is to calculate the allowance amount with specific formulas or criteria.

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

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

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

Here is an example of steps to set pension fund and Zakat deductions:

I. DPLK

To set pension fund deduction, in the Payroll Component section, click "Add Deduction" to add a deduction or income reduction.
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 from DPLK.

There are two types:
- Monthly: The payroll component amount will be calculated monthly (there is a deduction from this payroll component every month).
- One time: The component amount is not fixed and must be input by the user each month during the run payroll process. The amount will automatically reset 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 involves backpay or retroactive payment.

If you check Default, the following information will appear.

Choose Yes if you want all employees to have the deduction or Select Filter to select employees from certain organizations or positions.
Choose 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 using a formula.
Click "Confirm" to save.

II. Zakat

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

There are two types:
- Monthly: The payroll component amount will be calculated monthly (there is a deduction from this payroll component every month).
- One time: The component amount is not fixed and must be input by the user each month during the run payroll process. The amount will automatically reset 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.

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

III. Other Deductions

Enter the deduction policy name other than DPLK or Zakat, for example ‘Lateness’ in the Name field and the deduction amount in the Amount field.
Select foreign currency if using an 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 field.

- Monthly: The deduction policy is applied monthly.
- Daily: The deduction policy is applied daily.
- One Time: The deduction policy is applied occasionally.
Select the tax policy for 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 the right to this deduction policy.
Click "Formula" if the deduction policy is calculated using a formula.
Click "Confirm" to save.

C. How to Add Benefits

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 in the Benefits list cannot be deleted and can only be edited.

Here are the steps:

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

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

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

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

The pop-up that appears will be different from other benefits.

No.	Field/Button Name	Description
1	Calculation	Choose the BPJS calculation method using a customizable Formula or Normal Calculation (calculation based on the latest BPJS Employment/Health regulations).
2	Payroll Component Included	Select and set payroll components included with this BPJS-TK/Health benefit. Then, click “Add”. The selected payroll components included will be listed under Setting. You can remove them by clicking the “cross” icon.
3	Setting	Include Backpay: Click to include backpay or unpaid payroll for a certain period if applicable. Full Salary: This component is a benefit for employees who receive full salary. Prorate Salary: This component is a benefit for employees who receive prorated salary (working part-time).
4	Others Component	Include other components here if necessary.
5	Save	Once editing the BPJS-TK/Health benefit component is complete, click “Save”.

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

D. How to Add Custom Rate

This feature is used to add a fixed number (absolute) for formula creation purposes. This number is used if there is a rate change in a certain payroll component, so there is no need to change the entire formula, just add the latest custom rate amount by adjusting the effective date.

Important
Contact our support team at support-hr@mekari.com or a specialist team 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 choose an existing custom rate name or create a new one by clicking the “down arrow” icon. Then, set the effective date for 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 following list. You can “Edit” and “Delete” created Custom Rates.

E. How to Add Currency Rate

This tab is used to add currencies if the basic salary input is in foreign currency. Employee salary payments will always be in Rupiah currency, so if employees receive basic salary in foreign currency, the Take Home Pay received is the basic salary amount multiplied by the currency rate. If there is a change in the exchange rate, manual changes need to be made. Here's how:

Enter the currency name in the Name field or select an existing custom rate name or create a new one by clicking the “down arrow” icon. Then, set the effective date in the Effective Date field and enter the rate value in the Amount.

The above example adds the currency INR (Indian Rupee). The Amount entered will be multiplied by the employee's basic salary value. Thus, the employee will receive the basic salary in Rupees.
Click "Confirm" to save.
The created Currency Rate will appear in the following list. You can “Edit” and “Delete” created Custom Rates.

That concludes the explanation on how to manage payroll components 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 used, click the “down arrow” icon.
4	Payroll Payment Schedule	The default payroll schedule follows the cut-off payroll scheduling you set previously. Learn how to set 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	Choose the period of the benefit given to employees. Monthly: The payroll component amount is calculated monthly. If activated, Default and Prorate options appear. Default: If activated, the created allowance component will automatically be assigned to all employees with Assign Allowance for New Employee set to Yes. However, if the benefit applies only to certain divisions or positions, use the filter button Assign Allowance for New Employee, then select “Select Filter” and choose based on Organization/ Job Position/ Job Level/ Branch/ Payment Schedule for benefit distribution. Prorate: If activated, for employees joining mid-cut-off period, the payroll component will be automatically calculated proportionally according to the predetermined prorate rules. Daily: The payroll component amount is calculated daily, provided the employee is present (attendance code H). If absent, no payment is made. If activated, Default and Maximum Amount options appear. Default: Same function as the default in the monthly tab. Maximum Amount: Not Use: No maximum amount. Basic Salary Percentage: Determined by salary percentage, e.g., 60% means the payroll component amount is 60% of the basic salary. Custom Amount: The payroll component amount comes from a predetermined fixed number. One Time: This component amount is not fixed and must be input by the user each month during the run payroll process. The amount will automatically reset to zero each month. If activated, a Bonus option will appear, affecting tax calculations. Bonus: If activated, on the December 1721-A1 report, it will be classified under gross income point 8 (tantiem, bonus, gratuity, production services, and THR). If not activated, the bonus component is included as gross income point 3 (other allowances, overtime pay, etc.).
6	Tax	Choose the tax policy for the allowance in the Tax section. Taxable: The allowance component is included in tax calculations. Non Taxable: This component is not included in tax calculations.
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 a tax allowance equal to the tax amount deducted. Netto: The company bears the employee's tax. Click "Formula" if the allowance policy is calculated using a formula. This setting calculates the allowance amount with specific formulas or criteria. Important Contact our support team at support-hr@mekari.com or a specialist team for assistance in filling out formulas.

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