For example, if an employee has to bear travel costs to attend a meeting, companies would provide reimbursements for them. For example, in job roles such as sales, commissions could make up a large portion of the salary.Reimbursements are paid by companies when employees have to bear expenses when carrying out company duties. This could be in the form of payment when a certain threshold is met, or it can be a percentage for every customer an employee brings in. Commissions and reimbursements – Commissions are incentives given to employees to reward and motivate them.It is up to the company to provide such advances with many companies having strict policies around these types of payments. Salary advances – This allows employees to request a portion of their next month’s salary from the employer.Some companies have set limits on how many hours an employee could work overtime for a month. Overtime pay – In Sri Lanka, overtime pay is governed by the law which sets the overtime pay rate at 1.5 times the amount of hourly wage.For example, if you have an employee who earns 300 LKR hourly, for every hour they work overtime, you will have to pay them 450 LKR.

Some common types of allowances include vehicle allowances, housing allowances, or travel allowances.

It is typically negotiated into the employment contract. Allowances – A form of payments paid at the discretion of the company or to contribute towards the expenses of an employee.Usually, this amount is a set amount that does not change over time unless there is a promotion or salary increase. Basic salary – This is the main part of an employee’s salary.While others use a tiered structure with elements such as a basic salary, benefits, allowances, overtime, and other incentives being part of a standard salary of an employee. Some use a simple salary structure with the total amount of earnings counting as the basic salary.

In Sri Lanka, companies use different structures when calculating the salaries of employees. Learn to Manage Salaries With Us What are the types of payments and deductions found in salary slips?

Payslip format salary slip format