An employee is only paid when they have a salary configuration. It sets their pay cycle, gross or net pay, tax, allowances and deductions. KalHR then works out PAYE, pension and net pay.
Before you start
You need at least one pay cycle, and the allowances and deductions you'll use.
Add an employee to payroll
Compensation: employees on payroll
- Open Payroll → Compensation → Employees and select Add to Payroll.
- Basic Information: choose the company, the employee and their Pay Cycle. Then choose the
Salary Type:
- Gross Pay: enter the gross monthly salary. KalHR works out PAYE, pension and deductions to give net pay. Fill in the sections below.
- Net Pay: enter the fixed take-home amount. Nothing else is calculated, so skip to step 7.
- Tax Information: choose the Tax Type.
- 2026 PAYE Tax Law: enter the employee's Annual Rent. 20% of it, up to ₦500,000, is tax-free rent relief.
- Pre-2026 PAYE Tax Law: the previous consolidated relief rules.
- Personalized: a flat percentage of gross pay that you enter.
- Allowances: select the allowances that make up the salary and enter each amount or percentage. Missing one? Select New to create it without leaving the page.
- Deductions: add any deductions the same way.
- Pension: 8% from the employee and 10% from the employer, on basic + housing + transport, is included automatically. Tick Exclude pension calculation only for employees who are exempt.
- Select Preview to see the breakdown, then Create.
Configuring an employee's salary
Read the salary breakdown
The Salary Breakdown shows the monthly figures:
| Line | What it is |
|---|---|
| Gross pay | The salary you entered |
| Allowances | Each allowance and its naira amount |
| Deductions | Each deduction, plus PAYE and the employee's 8% pension |
| Net pay | What the employee receives |
The employer's 10% pension is shown separately: the company pays it on top of gross pay.
View or change a salary
On Payroll → Compensation → Employees:
- select a row to view the saved salary and its breakdown;
- select the edit icon to change it. Add a new allowance from the edit page with New if you need one;
- select the delete icon to Remove from payroll.
Good to know
You can't change a salary while it's in a payroll run that has been approved but not yet paid (status Active). Disburse or finish that run first.
