🎯 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 date when this change should come into effect in the Valid from field.
      💡 See this guide for salary cost allocation if you want to compare different cost allocation methods for fixed-salaried employees.

      Planday EN Screenshots for HC.001.png

  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)

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

      Planday EN Screenshots for HC.001.png
  3. Repeat this step for all Employee groups that this employee belongs to.


Switching from a fixed salary amount to hourly pay

The first action is to add a wage to each of the Employee groups.

  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 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.

Planday EN Screenshots for HC.001.png


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