How to create a component of the custom formula type?

Here’s how you can create a component of custom formaula type.

• Go to Settings on the left sidebar and select Salary Components.
• Click Add Component and select Earning.
• Select the Earning Type as Overtime Allowance. .
• Enter the name of the earning which will be displayed on payslips.
• Select the Variable Pay Type.
• Select Custom Formula as the Calculation Type and enter the formula.
• Check Mark this as Active option.
• Click Save.