Odoo Payroll Module Configuration of Salary Structure and Rules

Compensation package management is critical in a firm since it allows for the precise computation of each employee's salary based on their work position. A defined compensation structure is necessary to provide convenience in the payment of any employee's salary in your company. The pay structure is a collection of compensation standards and criteria that assist a firm in calculating each employee's allowance effectively. A pay structure is a comprehensive depiction of an employee's complete remuneration package. We need a dynamic system to manage the compensation structure and create salary rules or criteria.

Odoo, the most dependable open-source ERP management software, offers a wide range of features and functionalities. Odoo allows users to handle nearly all aspects of human resource administration, including employee management, contracts, attendance, timesheets, time off, and payroll. Odoo's Payroll Management module makes it easy to coordinate all payroll activities in a company. Payrolls are the entire amount of wages that a firm pays to its employees. Total work time, base pay, overtime, and bonus prizes are all elements that go into determining the compensation.

The firm enters into a contract with an employee at the time of recruiting in which we specify the pay package given by the company for the specific work role. The Payroll Module in Odoo allows us to create salary rules and determine the compensation structure of an employee in every employment role. It is a simple and effective platform for managing all payroll processes for employees inside a company.

In this blog, we'll go over how to set up salary structures and rules in Odoo payroll, as well as how to utilize them to produce wage slips.

You'll find the Odoo Payroll module in the Apps module, and you'll want to make sure you install it.

When you access this section, you will see a glimpse of all of your company's workers' data. We have a lot of choices in the settings menu of this module to design the compensation rule and structure.

We may construct a Salary Structure and Structure Type, Salary Rules, Salary Rule Parameters, Other Input Types, Salary Package Configuration such as Advantages, Personal Information, and Resume, as shown in the image. In the next section, we'll go over each of these points in further depth.

Salary Structure Types

In this area, you can design a new compensation structure type. It is critical to include the wage structure type in the contract when drafting a new contract with a newly hired employee. Employees, laborers, and trainees can each have their own compensation structure, with the wage type set to monthly or hourly.

With Default Scheduled Pay, Default Working Hours, Wage Type, and Regular Pay Structure, the list shows several sorts of compensation arrangements. To make a new salary structure type, click the ‘Create' button.

Add Structure Type and Country to the fields provided. You have the option of selecting Monthly Fixed Wage or Hourly Wage under Wage Type. Payments can be made on a monthly, quarterly, annual, weekly, bi-weekly, or bi-monthly basis. In the relevant fields, mention the working hours, pay structure, and work entry type. After you've filled in all of the data, save the new pay structure type, and you may use it to create contracts with the proper compensation structure.

Salary Structures

This field will guide you through the process of creating a new pay structure in Odoo. Compensation structure is critical for calculating each employee's salary based on their job title and issuing payslips for each payroll.

The table below shows all of Odoo's pay structures. To make a new salary structure, click the ‘Create' button.

Choose a kind from the drop-down menu and name the compensation structure. To the new compensation structure, add the country name, report method, scheduled pay, and salary journal. You may add salary rules to the Salary Rules section by using the Configuration menu of the module. You may also include information about the Unpaid Work Entry Type in the new wage structure and save the data once you've finished filling out all of the fields.

Salary Rules

Setting conditions in the form of compensation guidelines is critical for determining an employee's wage. The net amount will fluctuate depending on the set of regulations. We can find the option ‘Salary Rule' in the Odoo payroll Configuration menu, which displays all available salary rules established in this module.

To make a new wage rule, click the ‘Create' option as usual. When drafting a new employee contract, these are utilized to set the compensation structure.

Give the payment a name, choose a pay category (basic, allowance, or bonus), a code, a sequence, and a salary structure. Add basic information about the wage regulation to the ‘General' tab.

You may choose between Always True, Range, and Python Expression as your criteria. According to the Condition Based on what you've selected, further fields will display. Add the amount type, quantity, and fixed amount to the Computation field. Select Partner in the salary rule under Company Contribution. If any description is necessary, add a comment to the ‘Description' tab. Click on the 'Accounting' tab.

Set up the Debit Account, Credit Account, and Analytic Account in order to create new salary rules. Save the new wage rule and use it to create a suitable salary structure.

Rule Parameters 

The ‘Create' option in the Salary Rule Parameters section of the Configuration menu allows you to quickly create new parameters. The salary rules are determined by the salary rule parameter that we specify in this field.

Other Input Types

In the Configuration menu, under ‘Other Input Types,' you may add extra fields that will show when producing a payslip.

Give a brief description, select the Availability in Structure and add a unique Code to the input. 


In the Configuration menu of Odoo, you may put up additional pay benefits. This will be added to your pay package based on the wage structure you choose.

You can enter information in this field regarding the advantage's Name, Cost Field, Advantage Type, Salary Structure Type, Icon, Advantage Unit of Measure, Display Type, and Registered Documents. You may add a description to this box, and you can hide it by clicking on the ‘Hide Description' button.

After adding a new advantage, you can see them in the list as shown in the image.

Personal Info

Personal information about the employee may be included into the salary slip using the Personal Info box in the Configuration menu.

You may fill up the blanks with a Name, Related Field, Info Type, Salary Structure Type, Placeholder, Helper, Position, and Display type. If everything has been added, save the data.


You may add resume types to your compensation structure in this section. Name, Category, Salary Structure Type, Advantage Unit of Measure, Value Type, and Fixed Value should all be filled out.

These are the parameters in the Payroll module that let a firm define each employee's wage package. The sophisticated capabilities of Odoo have made managing payroll processes simple and painless, and you can easily arrange all of your payslips in this module.

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