🎯 This article is for intermediate admins. Get familiar with editing employee details to make full use of this feature.

When changing an employee's pay from hourly to salaried and vice versa, there are a few steps that you should take to ensure a smooth transition. You need to know the pay rates you will be setting and when the changes should come into effect, depending on when you run payroll.


Switching from hourly to a fixed salary amount

The first action is to add a fixed salary amount for the employee.

  1. Go to People > Employees > Select the required employee and press Edit > switch to the Employment tab > scroll down to the Salary section and press Edit salary.

    1. Set a fixed Salary amount.

    2. Set a Salary period to indicate how the fixed salary is distributed. Payment of salary will still follow the Pay period. So you can have employees with a monthly salary period yet be paid weekly or biweekly, depending on when you do your payroll.

    3. Set working hours based on the selected Salary period.

    4. Set a Valid from date to indicate when this change should come into effect.
      💡 See this guide for salary cost allocation if you want to compare different cost allocation methods for fixed-salaried employees.

  2. Next, from the Employment tab > scroll to the Employee groups section > press edit on one of the groups.

    1. Set the wage to 0 (zero). This is to ensure that the employee does not get double paid.

    2. Select a date when this change should come into effect in the Valid from field.

      Planday EN Screenshots for HC.001.png

    c. Repeat this step for all Employee groups that this Employee is part of.


Switching from a fixed salary amount to hourly pay

The first action is to add a wage to each Employee group.

  1. Go to People > Employees > Select the required employee and press Edit > Go to the Employment tab > scroll down to the Employee groups > Add or click edit on one of the groups.

    1. Set an hourly or by shift wage.

    2. Set a date when this change should come into effect in the "Valid from" field.

  2. This step will need to be repeated for all Employee groups that this employee belongs to.

    Planday EN Screenshots for HC.001.png

  3. Next, from the Employment tab, scroll down to the Salary section and press Edit salary.

    1. Set the fixed salary amount to zero.

    2. Put a date when this change should come into effect in the "valid from" field.

    3. Set the cost allocation to No allocation.


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