Salary components

Salary components are the building blocks of every employee's pay. Base salary, allowances, bonuses, deductions — each is a component you define once and apply to many employees.

Component types

• Earning — increases gross pay (base salary, transport allowance, bonus).
• Deduction — decreases gross pay (loan repayment, salary advance recovery).
• Tax — calculated against tax brackets (income tax, social security).
• Employer contribution — costs to the company (pension, health insurance) that don't change net pay.

Adding a component

1. Payroll → Components → New component.
2. Fill in:
   • Code — e.g. "TRANSPORT", short and unique.
   • Name — "Transport allowance".
   • Type — Earning / Deduction / Tax / Contribution.
   • Calculation — Fixed amount / Percentage of base / Formula.
   • Taxable — whether income tax applies.
   • Pensionable — whether pension is calculated on it.
3. Save.

Calculation modes

Fixed amount

A specific number, e.g. ₪500/month transport allowance.

Percentage of base

e.g. 5% of base salary as performance bonus.

Percentage of total earnings

e.g. 12% pension contribution on gross pay.

Formula

For complex calculations:

• base * 0.05 + 200 — 5% of base plus a flat 200.
• if(years_of_service > 5, base * 0.10, base * 0.05) — tenure-based bonus.

Assigning components to employees

When creating or editing an employee, the Compensation tab lets you:

1. Pick a salary structure template (recommended) — applies a standard bundle.
2. Or add components individually with employee-specific amounts.

Salary structure templates

For consistency, define templates that bundle components:

• Junior Engineer — Base + Transport + Pension contribution.
• Manager — Base + Transport + Bonus + Pension + Healthcare.

Then apply the template to new hires of that role with one click.

Israeli payroll specifics

Built-in Israeli components:

• Bituach Leumi (income tax, employee + employer)
• Pensia (pension)
• Keren Hishtalmut (training fund)
• Income tax brackets

These are pre-configured per the current tax year — updated by Momentumpro when tax law changes.

Next step

Run payroll →