In many countries, holiday allowances and salaries with extra payments (13th/14th salaries) are required by law or collective and company agreements. New features in Personio help you manage these extra payments:
- Additional pay: create and manage additional payments that depend on employees' salaries. These payments come on top of salaries (for example, "holiday allowance").
- Salaries including 13th/14th month pay: create and manage salaries that include components for extra payments.
These features offer several benefits:
- Configuration flexibility: Set up compensation types, reference amounts, periods, and payment schedules to match legal or company requirements.
- Bulk setup efficiency: Assign compensation types configure salaries with extra payments in bulk, saving time and reducing manual effort.
- Automated adjustment: When an employee’s base salary changes, all linked allowances and additional salaries are automatically recalculated, removing the need for manual updates.
- Accurate payroll: The feature automatically adjusts payouts in cases of unpaid leave or mid-period changes, ensuring compliance and reducing payroll errors.
Currently, you might use different workaround to track extra payments. This article explains how to transition to the new features in Personio without losing any data.
Transition to Additional pay
Use additional pay when employees qualify for extra payments relative to their fixed salaries. These payments come on top of the salary (for example, a fixed salary plus a "holiday allowance).
Scenario A: You use recurring payments as a workaround for additional payments
If you use recurring payments to track extra payments, follow these steps:
Step 1: Audit your current setup
First, identify all recurring compensation types you use as additional pay workarounds (for example, “Holiday Allowance”).
Go to Analytics > Create report > Standard blank report.
-
Create a blank report with the following information:
Employee attributes: Employee email.
Compensation attributes: Input the compensation types you use as a workaround for additional payments like holiday allowances.
Date: This year.
Save and export the report.
You use this report to discontinue discontinue the compensations you currently use as a workaround (in step 3).
Step 2: Set up the new compensation type
Set up the new compensation type ( Additional pay).
Step 3: Discontinue your workaround
Prepare a recurring compensation import to discontinue the old workaround:
Go to Settings.
In the Organization section, click Imports.
Select Salary as upload type and download the import template for recurring compensations.
-
Use data you exported in step 1 to fill in these columns:
Employee email.
Recurring compensation types name: the name must be the same as in Personio.
Amount: 0. This discontinues the payment.
Currency: for example, EUR.
Interval: choose the interval that you currently use.
Valid from date: the day when you switch to the new compensation type.
Delete the other columns.
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Import the file to discontinue your workaround compensation.
Optional: You can manually set the recurring compensation to 0 in the employee profile.
Check an employee profile to make sure everything works as expected.
Step 4: Assign the new additional pay type
Prepare an import file to bulk-assign the new additional pay compensation type:
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Select Salary as upload type and download the Additional pay template.
-
Fill in the following columns:
Employee email.
Additional Pay type (the name must be the same as in Personio).
Valid from date (the date when you switch to the new type)
Click Next and upload the file.
If you only have a few employees, assign the additional pay manually via each employee's profile.
Note that Personio calculates the value per employee based on the compensation type settings (for example, 8% of the annual base salary).
Step 5: Review and validate
Check an employee profile to make sure you assigned the new additional pay correctly. The additional pay appears in the dedicated Additional pay widget, not as a separate column in the salary table. The widget shows the full amount.
Alternatively, go to Organization > People list. Click Columns and select Additional pay.
Review the preliminary payroll to confirm the correct calculation and proration (if applicable).
Step 6: Communicate the change
- Communicate the change internally to all relevant stakeholders (HR, payroll, and managers).
- Document the new process for future reference.
Scenario B: You use one-time compensations as a workaround for additional payments
Step 1: Set up the new compensation type
Set up the new compensation type (Additional pay).
Step 2: Assign the new Additional pay type
Prepare an import file to bulk-assign the new additional pay compensation type:
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Select Salary as upload type and download the Additional pay template.
-
Fill in the following columns:
Employee email.
Additional Pay type (the name must be the same as in Personio).
Valid from date (the date when you switch to the new type)
Click Next and upload the file.
If you only have a few employees, assign the additional pay manually via each employee's profile.
Note that Personio calculates the value per employee based on the compensation settings (for example, 8% of the annual salary).
Step 3: Review and validate
Check an employee profile to make sure you assigned the new additional pay correctly. The additional pay appears in the dedicated Additional pay widget, not as a separate column in the salary table. The widget shows the full amount.
Alternatively, go to Organization > People list. Click Columns and select Additional pay.
Review the preliminary payroll to confirm the correct calculation and proration (if applicable).
Step 4: Communicate the change
- Communicate the change internally to all relevant stakeholders (HR, payroll, and managers).
- Document the new process for future reference.
Scenario C: You use custom attributes as a workaround for additional payments
Step 1: Audit your current setup
First, identify all custom attributes you use as additional pay workarounds (for example, “Holiday Allowance”).
Go to Analytics > Create report > Standard blank report.
-
Create a blank report with the following information:
Employee attributes: Employee email.
Employee attributes: Input the current workaround compensation types used for additional payments.
Date: This year.
Save and export the report.
The report allows you to discontinue these workaround compensations (in step 3).
Step 2: Set up the new compensation type
Set up the new compensation type (Additional pay).
Step 3: Discontinue your workaround
Prepare an employee data import to discontinue the old workaround:
Go to Settings.
In the Organization section, click Imports.
Select Employees as upload type and download the import file.
-
Use the exported data in step 1 to fill in these columns:
Employee email.
Custom attribute: the name must be the same as in Personio.
Value: 0. This discontinues the payment.
Delete the other columns.
Import the file to discontinue your workaround compensation.
Optional: Instead, you can either edit the attribute in the employee profile or via the employee list. Then, archive or delete the attribute.
Check an employee profile to make sure everything works as expected.
Step 4: Assign the new Additional pay type
Prepare an import file to bulk assign the new additional pay compensation type:
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Select Salary as upload type and download the Additional pay template.
-
Fill in the following columns:
Employee email.
Additional Pay type (the name must be the same as in Personio).
Valid from date (the date when you switch to the new type)
Click Next and upload the file.
If you only have a few employees, assign the additional pay manually via each employee's profile.
Note that Personio calculates the value per employee based on the compensation settings (for example, 8% of the annual salary).
Step 5: Review and validate
Check an employee profile to make sure you assigned the new additional pay correctly. The additional pay appears in the dedicated Additional pay widget, not as a separate column in the salary table. The widget shows the full amount.
Alternatively, go to Organization > People list. Click Columns and select Additional pay.
Review the preliminary payroll to confirm the correct calculation and proration (if applicable).
Step 6: Communicate the change
- Communicate the change internally to all relevant stakeholders (HR, payroll, and managers).
- Document the new process for future reference.
Transition to Salaries including 13th/14th month pay
Use this new salary type when employees’ salaries include extra payments (For example, “13th/14th salary”).
Scenario A: You use recurring payments as a workaround for 13th and 14th salary payments
You need to export your current recurring compensations and set up salaries that include 13th/14th month pay. Then you stop the recurring compensations from the moment the new salaries are in effect.
Step 1: Audit your current setup
First, identify all recurring compensation types you use as workarounds for 13th and 14th salary payments.
Go to Analytics > Create report > Standard blank report.
-
Create a blank report with the following information:
Employee attributes: Employee email.
Compensation attributes: Input the current workaround compensation types used for 13th and 14th salary payments.
Date: This year.
Save and export the report.
The report allows you to discontinue these workaround compensations (in step 3).
Step 2: Set up the new salary type
Set up the new salary type (Salaries including 13th/14th month pay).
Step 3: Discontinue your workaround
Prepare a recurring compensation import to discontinue the old workaround:
Go to Settings.
In the Organization section, click Imports.
Select Salary and download the import template for recurring compensations.
-
Use the exported data in step 1 to fill in these columns:
Employee email.
Recurring compensation types name: the name must be the same as in Personio.
Amount: 0. This discontinues the payment.
Currency: for example, EUR.
Interval: choose the interval that you currently use.
Valid from date: the day when you switch to the new compensation type.
Delete the other columns.
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Import the file to discontinue your workaround compensation.
Optional: You can manually set the recurring compensation to 0 in the employee profile.
Check an employee profile to make sure everything works as expected.
Step 4: Assign the new salary type
Prepare an import file to bulk assign the new salary type:
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Select Salary as upload type and download the new salary template (Salary V2).
-
Fill in the following columns:
Employee email.
Custom salary type name (for example, "Salary with 13th and 14th month payments").
Valid from date (the date when you switch to the new type).
Click Next and upload the file.
Alternatively, assign the salary that includes 13th/14th month pay via each employee’s profile, if you only have a few employees.
Step 5: Review and validate
Check an employee profile to ensure that you assigned the new salary type correctly. It appears in the dedicated Salary widget, not as a separate column in the salary table. The widget shows the full salary amount as well as the extra payments.
Alternatively, go to Organization > People list. Click Columns. Select Salary type and Annual salary (100%).
Review the preliminary payroll to confirm the correct calculation and proration (if applicable).
Step 6: Communicate the change
- Communicate the change internally to all relevant stakeholders (HR, payroll, and managers).
- Document the new process for future reference.
Scenario B: You use one-time compensations as a workaround for 13th and 14th salary payments
Step 1: Set up the new salary type
Set up the new salary type (Salary including 13th/14th month pay).
Step 2: Assign the new salary type
Prepare an import file to bulk assign the new salary type:
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Select Salary as upload type and download the new salary template (Salary V2).
-
Fill in the following columns:
Employee email.
Custom salary type name (for example, "Salary with 13th and 14th month payments").
Valid from date (the date when you switch to the new type).
Click Next and upload the file.
Alternatively, assign the salary that includes 13th/14th month pay via each employee’s profile, if you only have a few employees.
Step 3: Review and validate
Check an employee profile to ensure that you assigned the new salary type correctly. It appears in the dedicated Salary widget, not as a separate column in the salary table. The widget shows the full amount.
Alternatively, go to Organization > People list. Click Columns. Select Salary type and Annual salary (100%).
Review the preliminary payroll to confirm the correct calculation and proration (if applicable).
Step 4: Communicate the change
- Communicate the change internally to all relevant stakeholders (HR, payroll, and managers).
- Document the new process for future reference.
Scenario C: You use custom attributes as a workaround for 13th and 14th salary payments
Step 1: Audit your current setup
You first need to Identify all custom attributes you use as additional pay workarounds.
Go to Analytics > Create report > Standard blank report.
-
Create a blank report with the following information:
Employee attributes: Employee email.
Employee attributes: Input the current workaround compensation types used for additional payments.
Date: This year.
Save and export the report.
The report allows you to discontinue these workaround compensations (in step 3).
Step 2: Set up the new salary type
Set up the new salary type (Salary including 13th/14th month pay).
Step 3: Discontinue your workaround
Prepare an employee data import to discontinue the old workaround:
Go to Settings.
In the Organization section, click Imports.
Select Employees as upload type and download the import file.
-
Use the exported data in step 1 to fill in these columns:
Employee email.
Custom attribute: the name must be the same as in Personio.
Value: 0. This discontinues the payment.
Delete the other columns.
Import the file to discontinue your workaround compensation.
Optional: Instead, you can either edit the attribute in the employee profile or via the employee list. Then, archive or delete the attribute.
Step 4: Assign the new salary type
Prepare an import file to bulk assign the new salary type:
Go to Settings.
In the Payroll section, click Compensation.
Click the three dots and select Open salary imports.
Select Salary as upload type and download the new salary template (Salary V2).
-
Fill in the following columns:
Employee email.
Custom salary type name (for example, "Salary with 13th and 14th month payments").
Valid from date (the date when you switch to the new type).
Click Next and upload the file.
Alternatively, assign the salary that includes 13th/14th month pay via each employee’s profile, if you only have a few employees.
Step 4: Review and validate
Check an employee profile to ensure that you assigned the new salary type correctly. It appears the dedicated Salary widget, not as a separate column in the salary table. The widget shows the full amount.
Alternatively, go to Organization > People list. Click Columns and select Salary type and Annual salary (100%).
Review the preliminary payroll to confirm the correct calculation and proration (if applicable).
Step 5: Communicate the change
- Communicate the change internally to all relevant stakeholders (HR, payroll, and managers).
- Document the new process for future reference.
- Archive the old custom attribute via Settings > Personal information. To do so, select the relevant attribute and click the three dots on the top right corner.