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Pay Rate Change Mid Period

There are times you need to pay an employee two different rates for the same period. The most common examples are

  • When you agree to increase an hourly rate, but it takes effect mid pay period.

  • When the Government changes the Minimum Wage on a date that is mid pay period for you.

This tutorial shows how to set up a new pay rate to handle the situation.



Go to Setup - Company Defaults - Pay Rate Structure.

Click the first Unused Rate that is available and give it a logical name. We suggest Old Pay Rate.



Set a Default Rate if a lot of staff are paid the Minimum Wage

In this example, change the Ordinary Hours rate to the new minimum wage, and set the default value of the Old Pay Rate to the previous minimum wage.



Go back to Calculate Pays and you now have access to both rates.

This means if the wage increase takes place halfway through a period, you can correctly allocate hours worked against the correct rate.

It also reports this on the employee payslip.



More on Pay Calculation

  Pay Rate Structure   Cash rounding activation
  Regular payroll procedures   Must pay cash if employee insists
  Child support variation codes   Extra emoluments
  Overwriting PAYE deductions   Recording daily hours worked
  Allowing alternative holidays   Pay rate change mid period
  Checking previous period is filed   Minimum wage
  One off payments  
  Alphabetical Index FAQ Questions FAQ Contents Back to top
More on Pay Frequencies

  Bi monthly date calculation   Changing all employee pay frequencies
  Period end or actual payment dates   Pay dates and multiple pay frequencies
  Alphabetical Index FAQ Questions FAQ Contents Back to top
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Published: 19th January 2010 		Back to top