This article explains the range of salary components available in Personio, and their differences.
What are the Salary Components Available in Personio?
With Personio, you can create and manage the following Salary components:
- Main Salary: Fixed Salary or Hourly Salary
- Recurring Compensation
- One-time Compensation
While the main salary is paid out per month, other salary components allow for more flexible payout, as illustrated in the graphic below.
Main 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 main 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.
Example of a fixed salary displayed in an employee's Salary tab.
For detailed information on fixed salary, read our article on managing fixed salaries.
If the main 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.
Example of an hourly salary displayed in an employee's Salary tab.
For detailed information, read our article on managing hourly salaries.
You can record bonus payments flexibly and on a performance basis. The default setting for each employee is None.
Example of a bonus payment displayed in an employee's Salary tab.
A performance-based 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 performance-based bonuses in our article on linking performance goals to bonus payments.
A flexible bonus 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.
Find more information in our article on custom bonuses and how to manage them.
With the recurring compensation option, you can record any other salary components which are paid at regular intervals and in fixed amounts. This allows you to manage recurring salary components, such as public transport subsidies or a 13th month of salary.
Example of a recurring compensation displayed in an employee's Salary tab.
Find more information in our article on managing recurring 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.
Example of a one-time compensation displayed in an employee's Salary tab.
Find more information in our article on creating and managing one-time compensations.