Changing Pay Rates

There are two simple approaches to adjusting pay rates in PayHero, depending on whether or not the employee is using timesheets to record time.

Timesheets

If you're using Timesheets to record employee time entries there are a few steps that need to be taken to ensure the pay rate change is applied correctly.

At the end of the pay period, prior to creating a draft pay, ensure all time entries for staff with changing rates are recorded and not marked as "Paid".

Adjusting the Pay Rate

After all time entries have been recorded go into the employee's profile from People > Employees and under their Employment tab adjust their normal rate as required.

If there are unpaid time entries recorded for the employee you will see the following pop-up. Select the effective date for when the new rate will start being applied and click Confirm.

It's important to note that the effective date is only used to update existing time entries. Any time entries you add or edit from this moment on will be recorded at the new pay rate, even if they fall prior to the effective date.

Running the Pay

After completing the above steps you can now go and create the draft pay. The timesheet entries will be paid out at the appropriate rate - all time entries that fell after the effective date, or which were recorded after the update was applied, will automatically be paid at the updated rate.

No Timesheets or Salaried Employee

If you don't use Timesheets and instead input times directly into your draft pay, the first step is to adjust the pay rate. 

Go into the employee(s) profile from People > Employees, and under their Employment tab change their normal rate, or annual salary as required.

This new rate will apply to all hours in their next pay period.

What if the rate change takes effect mid-pay period?

If the rate change is being applied in the middle of a pay period for an employee who doesn't record timesheets, or is on a salary, you'll need to add any hours at their old pay rate into the draft pay manually. This requires two steps: creating a new Pay Item, and editing the pay. 

Creating the Pay Item

Go into Manage > Pay Items and click the  button to create a new Other Earnings pay item.

You'll need to name the pay item to reflect its use, change the Rate Type to Variable and select the Replaces Salary option for Salary Timesheet Hours. You can then hit the Save button.

Running the Pay

Once the pay cycle is in the draft stage, add the pay item you've created for the old pay rate, and enter the hours worked prior to the pay rate change, and the rate that applies to those hours. Make sure you also specify any hours at their new rate.

If the employee is on a salary, you'll be able to update the hours on the salary pay item to reflect the hours worked at their new rate - the salary hours field will 'unlock' after you've added the pay item for the old pay rate.