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. For clarity, each compensation type is listed in a separate column in the Salary tab of an employee's profile.

Recurring compensations need to first be created on the Compensation settings page and can then be edited there and managed for employees in the Salary tab of an employee's profile or via an import.

Note:
Employees for whom recurring compensations have been added will see them in the Salary tab of their profile if they have viewing rights for their salary information. The recurring compensations are displayed only for employees receiving them.

Before you start

To manage or view salary components in Personio, you need permissions to the Salary tab in the employee profile.

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.

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 rights or edit rights for the employee's Salary information.

Add recurring compensations

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

1. Go to the employee's Profile > Salary Tab > Salary Components.
2. Under Recurring compensations and bonuses, click on Manage.
3. Select the required compensation type and enter the following data:
   ▶︎ Currency: Enter the currency
   ▶︎ Amount (€): Enter the payment
   ▶︎ Effective from: Enter the start date for the payout
   ▶︎ Payout frequency: Define the payout frequency (monthly, quarterly, half-yearly, or yearly)
4. Click Add to save the compensation.

Edit recurring compensations 

To edit a recurring compensation that is being paid out to an employee, you need to enter the same compensation type again with the updated data. The process is similar to adding a new compensation. To do this, follow these steps:

1. Go to the employee's Profile > Salary Tab > Salary Components.
2. Under Recurring compensations and bonuses, click on Manage.
3. Select the compensation type you wish to edit and enter the following data:
   ▶︎ Currency: Enter the currency
   ▶︎ Amount(€): Enter the payment
   ▶︎ Effective from: Enter the start date for the payout
   ▶︎ Payout frequency: Define the payout frequency (monthly, quarterly, half-yearly, or yearly) 
4. Click Add to save the compensation.

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.
▶︎ An edited recurring compensation will only be displayed in the preliminary payroll in the Salary tab and the detailed view drawer. The change will not appear in the preliminary payroll's Personal info tab.

Terminate a recurring compensation payment

To terminate a recurring compensation that is being paid out to an employee, you need to enter the same compensation type again with an Amount of "0" to be paid out. The process is similar to adding a new compensation. To do this, follow these steps:

1. Go to the employee's Profile > Salary Tab > Salary Components.
2. Under Recurring compensations and bonuses, click on Manage.
3. Select the compensation type you wish to terminate and enter the following data:
   ▶︎ Currency: Enter the currency
   ▶︎ Amount (€): Enter 0
   ▶︎ Effective from: Enter the date from which the payout will be terminated
   ▶︎ Payout frequency: Choose the payout frequency previously entered
4. Click Add to save the compensation.

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.
▶︎ A terminated recurring compensation will only be displayed in the preliminary payroll in the Salary tab and the detailed view drawer. The change will not appear in the preliminary payroll's Personal info tab.

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.