Grade → Pay Component Inheritance

HRSanad HRMS · Payroll Module · Implemented 2026-04-19

Overview

The Grade Pay Component system lets HR define a default salary structure for each grade. Every employee in that grade automatically receives those components during payroll — no manual setup needed per employee. HR can then override specific values at the employee level when individual circumstances differ.

3-Layer Override Hierarchy

During payroll calculation, each component's final value is resolved using a strict priority order. Higher layers win over lower layers.

Resolution Logic (Pseudocode)

if employee.override_amount IS NOT NULL:
    use employee.override_amount                    -- Layer 3

elif employee.override_percentage IS NOT NULL:
    use basic_salary × (employee.override_pct / 100) -- Layer 3

elif grade.override_value IS NOT NULL:
    use grade.override_value                        -- Layer 2

elif grade.override_pct IS NOT NULL:
    use basic_salary × (grade.override_pct / 100)  -- Layer 2

else:
    apply global calc_method (fixed / pct_basic     -- Layer 1
                              pct_gross / formula …)

Database Schema

lookups.grade_pay_components (new table)

finance.employee_pay_components (existing — unchanged)

API Endpoints

POST Request Body

{
  "component_id":  "uuid",
  "override_value": 1500.00,   // optional — null to use global calc_method
  "override_pct":   null,      // optional — use one or neither, not both
  "sequence_no":    10         // optional
}

Payroll Calculation Flow

UI Guide for HR Admins

Setting Up Grade Defaults — Admin → Grades → Edit Grade

1. Navigate to Admin → Grades and open a grade in edit mode.
2. Scroll down past the grade details form to the "Default Pay Components" panel.
3. Click Add Component.
4. Select a pay component from the dropdown. The global default is shown as a hint.
5. Optionally set a Grade Override Amount (fixed AED) or Grade Override % (of basic salary). Leave both blank to use the component's global calculation method.
6. Set a Sequence No. to control the order on payslips.
7. Click Save.

Overriding at Employee Level — Personnel → Employees → Pay Components tab

1. Open an employee in edit mode and click the Pay Components tab.
2. You will see two types of rows:
   • From Grade — inherited from the grade. Read-only; shown for visibility.
   • Override — employee-level override of a grade component.
   • Employee Only — component added specifically for this employee, not in their grade.
3. Click Add Override / Extra to add a new row.
4. Select the component you want to override (it will already appear as "From Grade" but adding an employee-level entry will supersede it).
5. Enter the fixed amount or % override and the effective date range.
6. Click Save.

Key Files Changed

HRSanad HRMS · Generated 2026-04-19 · Owner: Waheed Rahuman Kamaludeen