Managing Fixed Salaries

 

This article describes how to store and manage fixed salaries in Personio.

In the context of managing main salaries, Personio differentiates between two salary types:

  1. Fixed salary:
    Salary payments are made each month in the same amount.
    This article describes how to store and manage fixed salaries.
  2. Hourly salary:
    Salary payments are made each month, but the amount is calculated based on the hours worked. Details on how to manage hourly salaries can be found here.

 

General Information About Fixed Salaries

  • A fixed salary is a regular salary payment always in the same amount.
  • It is calculated based on the weekly working hours entered under Employee profile > Personal info: 

Salary-Settings-Weeklyhours_en-us.png

  • If the weekly working hours are increased or reduced, the calculated amount is automatically adjusted.

 

Setting Up a Fixed Salary

    1. Recording the weekly working hours under Employee profile > Personal info:
      Salary-Settings-Changeweeklyhours_en-us.png
    2. Recording the fixed salary under Employee profile > Salary > Salary components > Edit > Main salary > Add salary:
      • Salary type: Choose between fixed salary and hourly salary.
      • Salary (100 %): Enter the the monthly or annual gross amount that the employee would receive if working full time.
      • Weekly working hours: Enter the employee's current working hours per week.
      • Effective salary: This is where the gross part-time salary is calculated. The basis for the calculation is the weekly working hours that were entered earlier.
      • Valid from: Enter the date from which the salary applies.
        See this article for information on how pro-rated salaries are calculated.

If you amend the weekly working hours under the Personal info tab, the salary calculation adjusts automatically. Both the payout amount as well as the period from which the changed working hours apply are taken into account.

Visit the following links for further information on managing part-time employment in Personio:

Configuring Part-time Employment

Best Practice: Part-time Employees and Student Trainees

Assigning and Configuring Working Hour Schedules

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