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:
- Base Salary: Fixed Salary or Hourly Salary
- Recurring Compensation
- One-time Compensation
While the base salary is paid out per month, other salary components allow for 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.
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.
For detailed information on fixed salary, read our article on managing fixed salaries.
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, 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.
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.
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.
Find more information in our article on creating and managing one-time compensations.