Configure Payroll Settings and Pay Components

Configure payroll statutory rates, then create reusable recurring or one-time pay components for allowances and deductions.

For School administrators, Accountants. Updated 2026-08-02.

Overview

Payroll is component-driven. The payroll setting defines currency, working days per month, statutory Tier 1/Tier 2 rates, payroll frequency, pay day, and whether PAYE, SSNIT, and Tier 2 are auto-calculated. Pay components, also called type heads, define named earnings and deductions such as transport allowance, loan deduction, SSNIT, Tier 2, and PAYE.

A component can be fixed, a percentage of basic salary, a percentage of gross pay, or PAYE bands. A component can be recurring for every payroll run or one-time for the next run only. Statutory components calculate from the payroll setting and selected salary; users should not manually type SSNIT or PAYE amounts on staff payroll assignments.

Steps

  1. Open HR & Payroll > Overview and select New setting to configure statutory rules
  2. Open the Components tab and select Add type head to create earnings and deductions
  3. Choose Earning or Deduction, the calculation method, and whether the component is recurring or one-time
  4. For statutory items such as SSNIT, Tier 2, or PAYE, use the statutory component so the amount is calculated from payroll settings
  5. Save the component, then add it to each staff member who should receive or pay it

Common problems

A statutory deduction is not being taken from a staff member's pay

The statutory component must be added to that staff member's payroll assignment; creating the component alone does not apply it to anyone.

A one-time deduction repeats in the next run

One-time components are consumed after payroll generation. Confirm the component was created with One-time next payroll only before assigning it.

SSNIT shows zero on a staff structure

Add the SSNIT statutory deduction component to the staff payroll assignment and ensure the payroll setting has auto-calculate SSNIT enabled and a Tier 1 employee rate.

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