Variable component:- 

Components like a bonus, incentives, salary advance etc., which are paid once or change month after month are Variable Component. (one-time payment or deduction component


Go to Settings >> Salary Components and click on New


NameVariable component 
Abbreviation (Short form)VC
Paid ComponentYes
Pay TypeEarnings / Deduction
Tax StatusNon-taxable/Taxable
Calculation TypeFlat
Map To-
Round off ValueAs per your requirement
Component TypeVariable
Is FBP componentNo
Attendance DependentNo
Part of CTCNo
ActiveYes
Is an FFS componentNo


Note: After creating the component, you will need to assign it to employees by navigating to Employees tab > Payroll Settings > Salary Components and clicking on Pay Allocation so that this becomes a part of their salary. 

 

To know more about allocating salary components, please read How to allocate a pay component in the salary structure of employees(Click here)