HR and payroll in OLY ERP

The HR & Payroll add-on keeps your employee records, attendance and leave in one place, and uses them to calculate monthly salaries the Ethiopian way: pension, income tax and net pay on every salary slip. This page gives you the big picture. The other pages in this section explain each step.

Before you start

• Your company has the HR & Payroll add-on. You see HR and Payroll in the sidebar.
• You have the right role. HR officers usually get the HR roles; the accountant gets the payroll and accounting roles. Your system admin gives roles.

What your consultant sets up during onboarding

Your OLY ERP consultant prepares these with you before the first payroll:

• Departments, Designations and Branches (if you have more than one site).
• A Holiday List with Ethiopian public holidays and your weekly day off.
• Shift Types for your working hours, and check-in devices if you use them.
• Leave Types, such as Annual Leave, Sick Leave and Leave Without Pay.
• Salary Components: Basic, allowances, overtime, pension and income tax.
• The Income Tax Slab with the current Ethiopian income tax brackets. OLY updates it when the law changes.
• Salary Structures and the payroll accounts in your Chart of Accounts.
• How your payroll months follow the Ethiopian calendar, including Pagume.

The monthly cycle

Example Foods PLC pays salaries once a month, for one Ethiopian month. Selam (HR and admin) and Meron (accountant) share the work:

1. During the month Selam keeps Employee records up to date. Attendance comes from check-ins or is marked by hand. Staff apply for leave and their manager approves.
2. After the month ends Selam checks that attendance is complete and every leave is approved or rejected.
3. Selam enters one-off amounts such as overtime or a bonus with Additional Salary.
4. Meron creates a Payroll Entry for the month. It makes one Salary Slip per employee.
5. Selam and Meron review the slips, then submit them. This posts the salary cost to the accounts.
6. Meron pays the net salaries and records the payment.
7. Meron uses the Salary Register for the pension and income tax filing.

Who does what

Good to know

• Payroll is only as correct as the attendance, leave and salary assignments behind it. Fix these first, then run payroll.
• Never change tax brackets yourself. If you think a tax amount is wrong, report it at oly.et/issues.
• In the first month, check a few salary slips against your own calculation before you submit.

Related

• Employees, departments and designations
• Salary structure for Ethiopia
• Run the monthly payroll
• Dates and the Ethiopian calendar