Payroll Processing Explained: From Gross Salary to Bank File

A step-by-step walkthrough of a modern payroll run: salary structures, allowances, deductions, wage protection files and end-of-service accruals.

Anatomy of a salary structure

Most confusion in payroll comes from mixing up basic salary with gross pay. Basic is the contractual foundation — benefits like end-of-service accruals usually compute from it. Allowances (housing, transport, phone) stack on top, and deductions come off the gross. Define these once as payroll components and every payslip derives from the same rules.

The monthly run

A clean run is: lock attendance, apply unpaid-leave and overtime adjustments from your work rules, compute each employee’s net, generate payslips, then export the bank or wage-protection file your country requires. If any step needs manual spreadsheet math, that’s a configuration gap — not a payroll fact of life.

Accruals you must not ignore

End-of-service benefits, leave balances and pension contributions accrue every month whether you book them or not. Configurable accrual rules mean your books always reflect the real liability — and an employee’s final settlement takes minutes, not days.