Salary Changes & Raises

When you promote an employee or give a raise, you update their salary directly on their employee record. Omnivoo uses the new amount for the next payroll run and recalculates all statutory and tax components automatically.

There is no separate "Revise Salary" wizard. A salary change is just an edit to the employee's compensation, optionally combined with an arrears adjustment if the raise should apply to months that were already paid.

Changing an Employee's Salary

1. Open the Payroll Employees page (from the Payroll dashboard) and find the employee.
2. Click the Edit (pencil) icon in the Actions column, or click the employee row to open their record.
3. Update the Salary field (and the Pay Period or Currency if those are changing).
4. Save.

The new salary takes effect from the next payroll run. Any run already created keeps the salary that was in effect when it was built.

info

Omnivoo derives Basic, HRA, Special Allowance, PF, ESI, gratuity, and TDS from the salary you enter, so you only change the salary amount. See Understanding Salary Structure for how each component is calculated.

Back-Pay (Arrears)

If a raise is meant to apply retroactively to months that were already paid, pay the difference as Arrears. There are two ways to do this:

• As an adjustment on the next regular run. Add an Arrears (Back Pay) addition for the employee with the total amount owed. See Adding Adjustments.
• As a correction to the already-completed run. Edit that employee's corrected gross so the delta is paid as arrears. See Correction Payroll.

Worked example

Suppose an employee's monthly salary is raised, effective two months back, but the change is made now:

• The two earlier months were paid at the old salary.
• You calculate the per-month difference and total it for the two months.
• Add that total as an Arrears adjustment on the next run (or process it as a correction on the original run).
• Arrears appear as a separate line item on the payslip.

Impact on Deductions and Tax

Because every component is derived from the salary amount, changing it re-derives the rest:

Component	What changes
Basic Salary	Recalculated from the new salary
HRA	Recalculated based on the new Basic
Special Allowance	Adjusted as the balancing component
Employee PF / Employer PF	Recalculated (12% of Basic, capped at ₹15,000 Basic)
Gratuity	Recalculated from the new Basic
ESI	Re-evaluated; an employee may exit ESI if gross exceeds ₹21,000/month
TDS	Recalculated for the remainder of the financial year

warning

If a raise pushes an employee's gross above ₹21,000/month, they exit ESI coverage from that month and no longer receive ESI benefits.

For Employees: What to Expect

When your salary changes:

1. Your next payslip reflects the updated salary structure.
2. If back-pay is owed, you will see an Arrears line item on the payslip for that run.
3. Your TDS may change as your projected annual income is updated. Check your tax computation statement for details.
4. Update your investment declarations if needed to optimize TDS under the new salary.