This article explains how to create and manage recurring compensations in Personio.

Recurring compensations are salary components with a regular payment (monthly, quarterly, half-yearly, or yearly) of a constant amount, such as subsidies for the public transport system.

First, you need to create Recurring compensations in the Compensation settings. Then, assign them to an employee in their Compensation tab or using an import.

Note:
Employees can see their recurring compensations in the Compensation tab of their profile. This applies only if they have viewing permissions for their salary information.

Before you start

To manage or view salary components in Personio, you need permissions for the employee’s salary information.

Create and manage recurring compensations in the settings

Recurring compensations have to be created in the settings before you can add them for individual employees or import them. In the Settings, you can also rename and delete recurring compensations.

Tip:
Use filters and sorting to manage your compensation types. Sort or filter by type, name or created date and use the search bar to quickly find what you need.

Note:
To create, edit, and delete recurring compensations in the Settings, you need to either have administrator rights or edit rights for Payroll.

Create recurring compensations

Follow these steps to create a recurring compensation in the Settings:

1. Go to Settings.
2. In the Payroll section, click Compensation.
3. Click on Create New.
4. Select Custom recurring.
5. Choose the Payout Frequency Recurring.
6. Save your entry.

Rename recurring compensations

If you rename a recurring compensation, the new name will be retroactively reflected in the whole tool. To do this, follow these steps:

1. Go to Settings.
2. In the Payroll section, click Compensation.
3. Click on the recurring compensation you want to rename.
4. In the drawer, click the three dots in the top right corner and select Rename.
5. Enter the new name and save your changes.

Delete recurring compensations

To delete a recurring compensation, follow these steps:

1. Go to Settings.
2. In the Payroll section, click Compensation.
3. Click on the recurring compensation you want to delete.
4. In the drawer, click the three dots in the top right corner and select Delete.
5. Confirm the deletion and click Delete again.

Note:
If you delete a recurring compensation, the change will be reflected retroactively in the entire tool. The compensation type will be removed from all employee profiles. The history of all payments under this compensation type will be removed retroactively, and the compensation type can no longer be paid out.

Archive recurring compensations (coming soon)

To archive a recurring compensation, follow these steps:

1. Go to Settings > Payroll > Compensation.
2. Click on the recurring compensation you want to archive.
3. In the drawer, click the three dots in the top right corner and select Archive. Confirm your choice.

The archived compensation is now not available for new assignments, but existing assignments are not affected.
 

Manage recurring compensations in the employee profile

In the employee profile, you can add, edit, and terminate recurring compensations.

Note:
To manually add and manage recurring compensations in an employee profile, you need to either have administrator permissions or edit permissions for the employee's Salary information.

Understand payout frequencies

When you set up a recurring compensation, you select a payout frequency. The compensation is then paid out according to predefined timeframes, regardless of the start date you choose. This ensures consistent and predictable payment scheduling aligned with your payroll calendar.

The system supports the following payout frequencies:

• Monthly: The compensation is paid every month.
• Quarterly: The compensation is paid in March, June, September, and December.
• Half-yearly: The compensation is paid in June and December.
• Yearly: The compensation is paid in a month you select.

Example:
If you set a compensation to start on April 1st with a half-yearly frequency, the first payout occurs in June (the next available half-yearly payout month), not in October. Subsequent payments are made in June and December each year. This is the intended design to align payments with predefined payroll periods.

Add a recurring compensation

To manually add a recurring compensation for an employee, follow these steps:

1. Go to the employee's profile. Click Compensation.
2. Click Add and select Recurring compensation.
3. Select the recurring compensation.
4. Enter the necessary data and save the compensation. 

Edit a recurring compensation

To edit a recurring compensation, follow these steps:

1. Go to the employee's profile. Click Compensation.
2. On the relevant recurring compensation widget, click the three-dots icon.
3. To edit the compensation, select Edit. Make the necessary changes and save. If you select a starting date that already exist for an older compensation, the new compensation replaces the old one.

Tip:
You can manage currencies at the compensation level for each employee. Workplace changes will not automatically change an employee's compensation currency, meaning employees will not inherit the workplace currency. If there's a mismatch between an employee's compensation currency and the workplace currency, a validation alert will notify you of the discrepancy.

Note:
If you change the payment amount for a compensation type, keep in mind that:
▶︎ Payments within the month are prorated based on the general configuration under Settings > Payroll > Salary & Payroll.

Stop a recurring compensation payment

To stop a recurring compensation, follow these steps:

1. Go to the employee's profile. Click Compensation.
2. On the relevant recurring compensation widget, click the three-dots icon.
3. Select Stop.
4. Select the date until which the compensation is supposed to stay in effect. 
5. Confirm your choice.

Note:
If you terminate the payment amount for a compensation type, keep in mind that:
▶︎ Payments within the month are prorated based on the general configuration under Settings > Payroll > Salary & Payroll.

Add recurring compensations via an import

To reduce the amount of data that needs to be entered manually, you also have the option of uploading recurring compensations via an import.

Find instructions on how to import your recurring compensations under Recurring Compensations in our article on importing salaries.