This article explains the range of salary components available in Personio and their differences.

With Personio, you can create and manage the following salary components: 

• Base salary: 
  • Fixed salary
  • Fixed salary including 13/14th month pay
  • Hourly salary
• Bonuses
• (Custom) Recurring compensations
• Additional pay
• (Custom) One-time compensations

While the base salary is paid out per month, other salary components allow for a more flexible payout, as illustrated in the graphic below. 

Base salary: Fixed salary or hourly salary 

For each employee, you need to define either the monthly/annual fixed salary or an hourly salary as the base salary.

Fixed salary

Personio calculates fixed salaries from both the weekly hours attribute and an employee’s hire date and contract end date. Salaries that are prorated because employees work part-time or enter or leave mid-month are therefore calculated automatically. The effective from date allows you to create a salary history.

For detailed information on fixed salaries, read our article on managing base salary.

Hourly Salary

If the base salary defined in the employee profile is an hourly salary, Personio calculates the total monthly salary by multiplying the hours worked by the hourly salary. You can enter the hours worked manually or use the attendance tracking function to have monthly salaries calculated automatically.

For detailed information on hourly salary, read our article on managing base salary.

Salary including 13th/14th month pay

In some countries, law, collective, or company agreements mandate 13th and 14th extra salary payments that are included in employees’ base salary. In Personio, you can create a dedicated salary type with such components.

Bonuses

You can record bonus payments flexibly and on a goal basis. The default setting for each employee is None.

Goal bonus

A goal bonus is tied to a performance goal, which can be defined in the Performance tab. Bonus salaries are calculated depending on the extent to which targets have been met.

Find more information about goal bonuses in our article on linking performance goals to bonus payments.

Variable bonus

A flexible bonus allows you to create bonuses that are paid in variable amounts at defined intervals (monthly, quarterly, half-yearly, or yearly). Once the variable bonus option has been activated, the amount to be paid can be entered directly in the salary overview.

Find more information in our article on variable bonuses and how to manage them.

Recurring compensations

With the recurring compensation option, you can record any other salary components that are paid at regular intervals and in fixed amounts. This allows you to manage recurring salary components, such as public transport subsidies.

Find more information in our article on managing recurring compensations.

Additional pay

With the additional pay option, you can record additional payments such as holiday allowance in Personio. You can create and manage additional pay in the settings and decide the percentage employees get on top of their base salaries. 

Find more information in our article on create and managing additional pay.

One-time compensations

With the one-time compensation option, you can record one-off financial compensations in Personio. To differentiate between different payments, you can create payment types, which you can then manage in the settings.

Find more information in our article on creating and managing one-time compensations.