Step 1 - Open the Custom Earnings creation page
From the left navigation bar, go to Payroll and click Salary Components (or open Salary Components directly from the navigation menu).
Select the Custom Earnings tab.
Click + New Custom Earning on the right.
The creation wizard opens with three steps: Basic, Advanced, and Summary.
Step 2 - Fill in the Basic details
On the Basic step:
Enter an Earning Name (required, up to 50 characters). This is the name shown on employee salary breakups and payslips.
Optionally add a Description (up to 100 characters in the field).
Under Earning Type, select Others for scheduled components such as joining bonuses, retention pay, or one-time incentives.
Tip: HRA cannot use Fixed Scheduled Pay. If you select HRA as the earning type, the Fixed Scheduled Pay option is disabled.
Under Pay Type, select Fixed Scheduled Pay.
Description shown: Fixed amount paid in a future payroll based on a schedule.
An info message appears: You may set pay month when assigning to someone.
Note: You do not set the payout month here. The exact payroll month is configured when you add this component to an individual employee's salary.
Click Next to proceed to the Advanced step.
Common validation errors on this step:
Required — the Earning Name field is empty.
Maximum 50 charaters — the name exceeds 50 characters.
There is already a custom earning with that name — choose a different name. A link is provided to view existing custom earnings.
Step 3 - Configure Advanced settings
On the Advanced step, set how this component affects tax, CTC, and statutory contributions:
Is it a taxable component — toggle Yes or No.
If Yes, Tax Deduction Preference is shown (defaults to Deduct tax in subsequent payrolls of the financial year).
For a non-taxable scheduled component, turn this switch off. See how to create a non-taxable custom earning for more on tax settings.
Is in CTC — toggle whether this component counts toward the employee's annual CTC when assigned to a salary.
If Yes, the amount you assign later will be included in CTC calculations (for example, Special Allowance is adjusted accordingly).
Is in FBP is not available for Fixed Scheduled Pay components.
Consider for EPF Contribution — shown when Is in CTC is Yes. Choose whether this earning is included in PF wage calculations.
Consider for ESI Contribution — choose whether this earning is included in ESI calculations.
Note: The following settings are automatically set for Fixed Scheduled Pay and are not shown or cannot be changed:
Calculate on Pro-rata basis — always No
Is Arrear enabled — always No
Click Next to proceed to the Summary step.
Step 4 - Review the Summary and create the component
On the Summary step, review all configured values:
Earning Name, Description, and Earning Type
Pay Type (shown as Fixed Scheduled Pay)
Taxable component, Tax Deduction Preference (if applicable)
Is in CTC, Is in FBP
Calculation Type (defaults to Flat Amount)
Calculate on Pro-rata basis — No
Consider for EPF Contribution and Consider for ESI Contribution
Is Arrear enabled — No
If everything looks correct, click Create.
On success, you will see: Custom Earning created Successfully. Click View Earnings to return to the Custom Earnings list.
Step 5 - Verify the component in Custom Earnings
Back on the Custom Earnings tab:
Find your new component in the earnings table by Earning Name.
Confirm its status shows Active.
Click the info (i) icon next to the component to open More Details and verify settings such as Pay Type, tax treatment, and statutory flags.
Your Scheduled pay component is now ready to be assigned to employees.
Step 6 - Assign the component to an employee (next step)
Creating the component adds it to your company's salary component library. To actually pay an employee using this component:
Go to People and open the employee's profile.
Open the Salary tab.
Click Add Now, Update Salary, or Revise Salary as appropriate.
On the Enter Salary Data step, click E (Earnings) to open Add Earning.
Select your Fixed Scheduled Pay component, enter the amount, and set When should this be paid? to choose the payout month.
The scheduled amount is included in payroll only in the month you configure — not every month.
Additional Information
Prerequisites and permissions
Admin access is required to create custom earnings.
Scheduled pay applies to employees only. It is not available for contractors or during candidate hiring flows.
The component must be created before it can be added to any employee's salary.
Choosing the right settings
Is in CTC: Yes — joining bonus or retention pay that is part of the employee's offered CTC
Is in CTC: No — one-time payments outside CTC (for example, a discretionary bonus)
Taxable: Yes — most cash bonuses and retention payments
Taxable: No — exempt reimbursements or specifically non-taxable allowances
Editing an existing Scheduled pay component
From Payroll > Salary Components > Custom Earnings, you can edit the Name, Description, and certain settings of an existing component. If the component is already assigned to employees, amount changes apply only to new salary assignments.
Troubleshooting
Fixed Scheduled Pay option is greyed out — you likely selected HRA as the Earning Type. Switch to Others.
New Custom Earning button is missing — confirm you are logged in as an Admin, not HR-only.
Duplicate name error — the earning name matches an existing custom earning, deduction, or standard component. Choose a unique name.
Coming soon
Calendar-based schedules (quarterly, half-yearly, yearly, or custom calendar months) are planned for a future release. Currently, only month(s) after Date of Joining / Salary Effective from scheduling is supported when assigning the component to an employee's salary.