> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bumara.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Pay elements
> Allowances and deductions — what is added to and taken from pay, how each is taxed, and how they affect statutory contributions.
**Rates, thresholds and deadlines change.** The figures on this page reflect the rules Bumara
applies today and are given as a guide. The regulator's current published position always
governs. Bumara applies the rate in force when your filing is calculated — always check the
figures shown on your actual filing rather than relying on this page, and take professional
advice on how the rules apply to your business.
Pay elements are the parts that make up an employee's pay beyond basic salary. **Allowances** add
to it. **Deductions** take from it. How each is configured affects gross pay, take-home pay, and
what you owe ZRA, NAPSA and NHIMA.
## Standard elements
Bumara creates these automatically when you set up payroll:
| Element | Type | Typical use |
| ----------------------- | --------- | -------------------------- |
| **Housing allowance** | Allowance | Accommodation contribution |
| **Transport allowance** | Allowance | Travel to and from work |
| **Meal allowance** | Allowance | Meals during work |
| **Leave pay** | Allowance | Paid leave days |
| **Advance** | Deduction | Salary advance recovery |
## Adding your own
Choose **Add**.
The name appears on every payslip. "Fuel allowance" is clear; "Allowance 3" is not.
| Type | Behaviour |
| ------------ | ----------------------------------------------------- |
| **Fixed** | The same amount every month |
| **Variable** | Entered per employee per month through monthly inputs |
Whether it is taxable. This is the setting that matters most — see below.
Whether it forms part of the base for NAPSA, and whether it affects NHIMA.
It is now assignable to employees.
## Tax treatment
This determines whether the amount is included in chargeable emoluments for PAYE.
| Treatment | Effect |
| --------------- | ----------------------------------------------------------- |
| **Taxable** | Included in chargeable emoluments. PAYE is calculated on it |
| **Non-taxable** | Excluded from chargeable emoluments. No PAYE |
Do not guess this. Whether an allowance is taxable is a question of Zambian tax law, not
preference. Treating a taxable allowance as non-taxable understates PAYE for every employee,
every month, and the correction is backdated with interest. Ask your accountant.
## The contribution bases
The two schemes use different bases, and this is a frequent source of confusion:
| Scheme | Rate | Calculated on |
| --------- | ---------------------------- | ---------------------------------------------- |
| **NAPSA** | 5.5% employee, 5.5% employer | **Gross** pay, capped at the statutory ceiling |
| **NHIMA** | 1% employee, 1% employer | **Basic** salary |
So an employee on K5,000 basic with K3,000 of allowances has NAPSA calculated on K8,000 (subject to
the ceiling) but NHIMA calculated on K5,000.
When you configure an allowance, you specify whether it forms part of the gross for NAPSA purposes.
Get this wrong and your NAPSA contributions are wrong for everyone who receives that allowance.
## Assigning to an employee
From Payroll → Employees.
Choose **Add**.
For fixed elements. Variable ones are entered monthly instead.
From when it applies, and until when if it is temporary.
It appears in the next pay run within its effective dates.
Effective dates catch people out constantly. An allowance dated from the 1st of next month will
not appear in this month's run, no matter when you entered it. If an employee's pay looks wrong,
check the effective dates first.
## Deductions
| Kind | Example | Set up as |
| -------------------- | ------------------------------- | -------------------------------------------------------------- |
| **Recurring** | Union subscription, social fund | Fixed, assigned to the employee |
| **One-off** | A single ad-hoc deduction | Entered through monthly inputs |
| **Advance recovery** | Repayment of a salary advance | The standard Advance deduction |
| **Loan instalment** | Repayment of a staff loan | Created automatically by the loan. See [Loans](/payroll/loans) |
### The deduction cap
Your payroll settings include a maximum deduction percentage, commonly 50% of gross.
If an employee's total deductions would exceed the cap, Bumara limits them. This protects both the
employee — who must have something to live on — and you, since excessive deductions may breach
employment law.
If a deduction was capped, the shortfall carries into the following month rather than disappearing.
## Overtime
Overtime is calculated during the pay run from hours entered in monthly inputs, using the
multipliers in your payroll settings.
| Type | Typical multiplier |
| --------------------------- | ------------------ |
| Regular overtime | 1.5× |
| Holiday or weekend overtime | 2.0× |
The hourly rate is derived from the employee's salary and your configured working days.
## Reviewing your elements
| Check | How often |
| ----------------------------------------- | --------------------------------------- |
| Tax treatment is correct on every element | Annually, and whenever tax rules change |
| NAPSA base setting is correct | Annually |
| Amounts still reflect your policy | At each salary review |
| Elements with no employees assigned | Annually — archive them |
| Effective dates on temporary elements | Monthly, before the run |
## Common problems
| Problem | Usual cause |
| ----------------------------------------- | ----------------------------------------------------------------------- |
| Employee's pay is lower than expected | An allowance's effective date has not started |
| Employee's pay is higher than expected | A temporary allowance's end date has passed but was never set |
| PAYE looks too low | A taxable allowance is configured as non-taxable |
| NAPSA looks too low | An allowance is excluded from the gross base when it should be included |
| NHIMA does not match NAPSA proportionally | Correct — they use different bases |
| A deduction did not fully apply | The deduction cap was reached |
Next: [Monthly inputs](/payroll/monthly-inputs) for the variable figures entered each period.