## Zoho Payroll Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-ae/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

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# How to create a component of the custom formula type?

Here’s how you can create a component of custom formaula type.

*   Go to **Settings** on the left sidebar and select **Salary Components**.
*   Click **Add Component** and select **Earning**.
*   Select the **Earning Type** as **Overtime Allowance**. .
*   Enter the name of the earning which will be displayed on payslips.
*   Select the **Variable Pay Type**.
*   Select **Custom Formula** as the **Calculation Type** and enter the formula.
*   Check **Mark this as Active** option.
*   Click **Save**.