You can create the salary structure by navigating to Configuration>Salary Structure.
Click on “+Add Salary Structure” and you will find all the salary components which can be configured as per your requirement.
You can add/remove the salary components as per the organization’s requirement and you can also put calculations for each whether it should go flat or with formula.
After adding all the details click submit to save the salary structure. All the created salary structures can be viewed on the Salary Structure tab.