Use case
You can update an employee's salary (amount and/or compensation type) directly in the employee's profile and the update will automatically sync with payroll. Common examples of this are:
An employee may have just been awarded a salary increase, or has moved to a different work schedule which is impacting their salary.
It might also be the situation in which a salaried employee is moving to a hourly pay schedule, or inversely.
⚠️ Editing someone's salary won't affect their worked hours - you'll need to update this separately if needed.
How to update an employee's salary or compensation type
1. Go to the People tab
2. Click "Work & Pay"
3. Scroll down to the "Pay" box and click "Update"
4. Process the update:
If you need to change the employee's compensation type, select between the "salary" or "paid by the hour" options
To increase or decrease their salary, just edit the "Yearly amount" section. You can see the monthly gross amount of the updated salary just below the cell, in grey 💡
Selecting an effective date for the salary update
You can set your effective date for the salary update as today, a past date or a future date.
⚠️ If you're making a salary update after payroll has been run for the month, the effective date for this change will need to be at the earliest the first day of the new payroll period. For eg, if payroll for the month of October has been submitted, you'll only be able to set the effective date as the 1st November.
Backdating an employee's salary
In the event you need to backdate an employee's salary to a past date and payroll has already been run for the period, we have a manual work around for this:
1. Update the salary and set the effective date as the first day of the new payroll cycle
2. Add a bonus to make up the difference in income between the previous and updated salaries, and add it to the following payroll run.
🛠 This is a temporary workaround until we build a fix for this.