Salary Components


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

The diagram below illustrates how the various salary components differ in terms of their payment frequencies and payment amounts.




Main Salary - Fixed Salary/Hourly Wages 

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

  • Fixed salary

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

You can find detailed information on the function of the fixed salary here.



  • Hourly wages

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

You can find detailed information on configuring and managing hourly wages here.




You can record bonus salaries flexibly and/or on a performance basis. The default setting for each employee is None.

  • Target bonus percentage:

This type of bonus salary is tied to target agreements, which can be defined under the Performance tab. Bonus salaries are calculated depending on the extent to which targets have been met. Click here for additional information on how to set up and manage target agreements in the Performance section.

  • Custom Bonus:

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


Detailed information on the configuration and management of bonus payments can be found here.


Recurring compensation

Use the Recurring Compensation option to record any other salary components which are paid at regular intervals and in fixed amounts. This facilitates the easy management of recurring salary components, such as public transport subsidies or a 13th month of salary.

Detailed information on setting up and managing recurring compensations can be found here.



One-time compensation

Use the one-time compensation option to record one-off financial compensation in Personio. You can create any number of reasons for such payments to allow you to differentiate between the various types of extra payments.

Detailed information on setting up and managing one-time payments can be found here.


As long as you record all employee information and salary components which are relevant for payroll, Personio supports your payroll accounting through the preliminary payroll function.




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