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Create and Manage Recurring Compensations

 

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

 

What are Recurring Compensations?

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 Additional 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 own Salary information. The recurring compensations are displayed only for employees receiving them.

 

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.

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

 

Create Recurring Compensations

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

  1. Go to Settings > Payroll > Additional Compensation.
  2. Click on Create New and enter a name for the compensation.
  3. Choose the Payout Frequency "Recurring"
  4. Click on Confirm.

 

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 > Payroll > Additional Compensation.
  2. Click on the recurring compensation you want to rename.
  3. Click into the Name field and rename the compensation.
  4. Click on Save.

 

Delete Recurring Compensations

To delete a recurring compensation, follow these steps:

  1. Go to Settings > Payroll > Additional Compensation.
  2. Click on the recurring compensation you want to delete.
  3. Click on the Delete button on the upper right.
  4. Click on Delete to confirm that you want to delete the compensation.

Note: If you delete a recurring compensation, the change will be reflected retroactively in the whole 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.
  2. Click on Manage > Edit/Add recurring compensation.

  3. Select the required compensation type and enter the following data:

    ▶︎ Amount: Enter the payment
    ▶︎ Valid from: Enter the start date for the payout
    ▶︎ Interval: Define the payment frequency (monthly, quarterly, half-yearly, or yearly)

  4. Click Submit 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.
  2. Click on Manage > Edit/Add recurring compensation.

  3. Select the compensation type you wish to edit and enter the following data:

    ▶︎ Amount: Enter the payment
    ▶︎ Valid from: Enter the start date for the payout
    ▶︎ Interval: Define the payment frequency (monthly, quarterly, half-yearly, or yearly)

     
  4. Click Submit to save the compensation.

 

Note: If you change the payment amount for a compensation type, keep in mind that:
▶︎ Payments within the month are prorated based on the configuration under Settings > Salary & Payroll > General.
▶︎ 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.
  2. Click on Manage > Edit/Add recurring compensation.

  3. Select the compensation type you wish to terminate and enter the following data:

    ▶︎ Amount: Enter 0
    ▶︎ Valid from: Enter the date from which the payout will be terminated
    ▶︎ Interval: Choose the payment frequency previously entered
  4. Click Submit 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 configuration under Settings > Salary & Payroll > General.
▶︎ 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 Step 3: Importing Salaries.