Using this component you determine an employee’s gross pay, according to contractual requirements, which is composed of payments and deductions.

Examples of payments that are included in the calculation of gross remuneration are as follows:

• Basic pay
• Bonuses
• Vacation allowance
• Holiday bonus
• Gratuities

Deductions include company-owned apartment, company-sponsored day care, and similar benefits.

Different factors determine whether such payments and deductions increase or reduce the taxable income. Such factors include the statutory regulations of a country and, in some countries, the enterprise policy.

Individual gross values are grouped together as bases for taxes or social insurance (SI) contributions according to the specifications of a country, state or region and pay scale regulations for a profession. These gross cumulations are used to calculate specific values.

Some important gross cumulations are:

• Gross tax amount
• Gross social insurance amount

Other gross cumulations are assessment bases for calculating holiday bonuses, vacation allowances, or other employee bonuses.