Overview of Payroll supplements
Set Payroll supplements to pay employees for overtime and set payment rules if they exceed their contracted hours.
Written by Maud
Updated over a week ago

🎯 For advanced admins. If you’d like to see examples of Payroll supplements and how to use them, go to Payroll Supplements – Use Cases.

You can create payroll supplements to automatically adjust employees’ hourly rates or salaries based on set criteria. For example, you may want to pay your employees overtime if they work more than 10 hours during the day by using a normal supplement. You may want to pay your employees double on certain holidays using a day-based supplement. Or based on their Contract type some employees should be allocated a percentage of their hourly rate if they work on the weekends.

How to create a Payroll supplement

First, go to Settings > Payroll > Payroll supplement.

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Here, you’ll have the option to create different kinds of supplements.
If you click on the Create button under Payroll supplement, several options will be available from the drop-down menu:

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1. Choose the type of supplement

  • Supplement type: Normal Supplements, Week Based Supplement, Day Based Supplement and Contract rules supplement.

  • Title: Name of the supplement.

  • Description: Include a description (optional).

2. Define when the supplement should apply

Based on the chosen Payroll supplement, different options will determine

  • when should the supplement apply

  • after how many hours

  • at what time of the day

  • and if it should be a monetary increase or a percentage increase.

3. Define what days it should be applied and when it should be valid

  • Days of the week: Select which days of the week the supplement should be applicable.

  • Days from Bank Holiday calendar: Choose specific days from the Bank Holiday calendar in the system.

  • Valid from/to: Set when the supplement comes into effect or ends.

4. Set filters defining who the supplement should apply to

  • Employee groups: Select which Employee groups are eligible for the supplement.

  • Employee types: Select which Employee types are eligible for the supplement.

  • Shift types: This option allows you to define to which Shift types the Payroll supplement should apply. Contact our support team if you want to enable this option on your Planday.

5. Enable additional settings

  • Affects salaried employees: If selected, the supplement will also affect those with a fixed salary rather than an hourly rate. This may not work with percentage-based supplements.

  • Affected by breaks: If there is a break in the shift, should the break affect the shift time and therefore the total amount of time being affected by the supplement. Select this option if the supplement shouldn’t be paid during break periods.

  • Enforced payment: Enable this to ensure that the supplement is always added to the pay – even though other supplements are present in the same period of the shift. If you don't select this option and two supplements are applied to an employee at the same time, only the one with the highest value will be given.

  • Allow over midnight: Select if a shift goes over midnight, potentially into a day not selected as being covered by a supplement, should the supplement continue to apply on the hours that fall in the next day after midnight.

Overview of different Payroll supplements in Planday

Normal supplement

Normal supplements are used when an employee’s pay rate should be adjusted at a certain time of the day, or after a specified amount of hours into a shift. You can set the increase or decrease in pay rate based on a percentage of a wage, or as a set monetary value.
For example, full-time employees should be paid an additional 50% of their normal wage after 8.5 hours of work.

Week-based supplement

Week-based supplements are used to apply a supplement after a set number of hours worked in a week.
For example, you can create a week-based supplement that will apply an additional 50% of an employee’s normal wage after 40 hours have been worked in a single 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. It applies directly to the shift in the schedule. You can set a fixed amount per shift or per hour.

Contract rules supplement

A Contract rules supplement can be applied to all employees that have a specific contract rule to pay them automatically any overtime supplements. 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.

Personal supplement

You can set a fixed amount that your employees can get on a monthly basis.
For example, an employee receives a bonus for being a team leader in a busy period.

Seniority supplement

Seniority supplements can be added to the original pay rate, either monthly, bimonthly, daily or hourly after a certain length of employment. You can set up a required employment length and the number of days the supplement should be added.

Time supplement

This is especially relevant for employees who work on bank holidays.
For example, employees can get a time supplement of 150% or 200% on bank holidays. This time compensation is added to their TOIL (Overtime) account.
Ifthe option % (overtime) is used in the dropdown under Hourly wage when you create a Normal supplement, the Time supplement will show in the section Time supplement.

Need more help?

Please search for answers in the 🔍 Help Center or watch our ▶️ video tutorials.

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