What are Payroll supplements?

Payroll supplements help automate pay adjustments based on overtime, working hours, or contract rules. These allow you to set conditions where employees receive additional compensation based on their shifts and work patterns.

Types of payroll supplements

Normal supplement

Increases pay rate at a set time of the day or after a specific number of hours in a shift.

For example: Employees get an extra 50% wage after working 8.5 hours.

Week-based supplement

Applies after an employee exceeds a certain number of hours in a week.

For example: Overtime pay kicks in after 40 hours/week.

Day-based supplement

Day-based supplements are used when employees work more than one shift per day. The day-based supplement will account for all hours worked during the day.

For example: If an employee works more than 9 hours in a single day, they get time and a half for each hour worked over 9 hours.

Manual supplement

These supplements are used when you manually want to add supplements to your employees, such as bonuses or tips. It applies directly to the shift in the schedule. You can set a fixed amount per shift or per hour.

Contract rules supplement

Automatically applies overtime pay based on contract rules. For this type of supplement to work, you should already have contract rules set up for different employee types under Settings > Contract rules > Create Contract rule. This governs how many hours an employee should be working and lets you see and compare if they go beyond the contracted hours in the schedule and pay them a supplement.

For example: Employees exceeding their contracted hours get an extra 25%.

Personal supplement

A fixed monthly amount for specific employees.

For example: A bonus for being a team player in a busy period.

Seniority supplement

Pay increases based on employment length. This can be added to the original pay rate, either monthly, bimonthly, daily or hourly after a certain length of employment.

For example: Employees get an extra €50/month after 5 years of service.

Time supplement

Compensates employees working on holidays, often as TOIL (Time Off in Lieu). This is added to their TOIL (Overtime) account. If the option % (overtime) is used in the dropdown under hourly wage when you create a normal supplement, the time supplement will show in the Time supplement section.

For example: 200% wage for shifts on public holidays.

How to create a Payroll supplement

Go to Settings > Payroll > Payroll supplements then click Create.

Choose the type of supplement

Supplement type:
- Normal Supplements - Based on time worked in a shift.
- Week Based Supplement - Based on total hours worked in a week.
- Day Based Supplement - For multiple shifts in a day.
- Contract rules supplement - linked to contract rules.
Name: Name of the supplement.
Description: Include a description (optional).

Set how the supplement is calculated and paid out

Based on the chosen supplement type, different options will determine:

if it should be a fixed monetary increase or a percentage increase.
what should the supplement be based on
- Fixed time - The supplement applies from a set time of the day, for a set duration.
- Shifts - The supplement applies relative to a shift's duration.

Read Payroll supplements – Use cases to learn more.

Set who the supplement should apply to

Employee types: Select which Employee types are eligible for the supplement.
Employee groups: Select which Employee groups are eligible for the supplement.
Shift types: This option allows you to define to which Shift types the Payroll supplement should apply. If you do not see this option, please contact the support team to activate this feature in your Planday workspace.
Days of the week: Select which days of the week the supplement should be applicable.
Holidays from: Choose specific days from the Bank Holiday calendar in the system.
Range: Set when the supplement comes into effect or ends.

Set advanced supplement settings

Affects salaried employees: This option determines if the supplement applies to employees with fixed salaries, not just hourly wages. Note that this might not work with percentage-based supplements.
Affected by breaks: This option decides if break time influences the total shift time and, consequently, the supplement amount. Select this if the supplement should not be paid during breaks.
Enforced payment: This option guarantees that the supplement is always paid, even if other supplements exist for the same shift period. If this is not selected, only the highest value supplement will be applied when multiple supplements are available for an employee at the same time.
For example, if an employee could receive either supplement A at €4.50 per hour or supplement B at €3.75 per hour, supplement A would be applied because it has a higher value.
Allow over midnight: This option determines if the supplement continues to apply if a shift extends past midnight into a day that is not covered by the supplement.

Next read:

Payroll Supplements – Use Cases

See related articles:

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