In this article, you will learn how to configure and manage recurring compensation in Personio.
Recurring compensation allows you to log salary components for which the same amount is paid regularly (monthly, quarterly, half-yearly, or yearly) such as, for example, Christmas bonuses or public transport subsidies. For the sake of clarity, any recurring compensation is shown in a separate column in the employee’s salary overview.
Setting Up Recurring Compensation
First of all, define all the recurring compensation types that are regularly paid to your employees.
Go to Settings > Salary & Payroll > Recurring compensation types and create all the required types of compensation using the Create new type field.
Managing Compensation Types
Then go to the Salary tab in the employee profile and, in the Salary components area, click on Edit > Change recurring compensation.
Select the desired compensation type and enter the following information:
- Valid from: Enter the date from which the amount should be paid.
- Interval: Set the payment frequency (monthly, quarterly, half-yearly, or yearly).
Save the operation once you have entered all the information.
To end the regular payment of a recurring compensation in Personio, repeat the steps described above and change the amount to be paid to zero from the desired date.
If the value of a compensation type changes, double-check your preparatory payroll before giving it to your accountant. If the payment of a recurring compensation type is set to zero, the change will only be displayed in the preparatory payroll Salary data. The change will not be displayed in the preparatory payroll Personal data.
Setting Up One-Time Compensation Payments
As well as a recurring compensation that is paid at regular intervals, you also have the option of making one-time compensation payments to your employees. For detailed information, please click here.
To reduce the amount of information that has to be entered manually, it is possible to upload recurring compensations to Personio as an import. You can find detailed information on this here.
All employees for which a recurring compensation type is enabled can see it in their salary data overview – as long as they have viewing rights for their own salary data. Employees who do not receive recurring compensations are not shown the different compensation types in their salary overview.
All the compensation types that have been set up are assigned to the salary data in the preparatory payroll and displayed on a monthly basis. You can find further information on salaries and payroll here.
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