Shift Allowances

Overview

Shift allowances are relevant to users who have the Time & attendance module enabled. As the name implies, they refer to allowances given to employees working on certain shifts. They are added to shift templates.

Permissions

To set up shift allowances, you will need the Manage Time and Attendance Settings set on Global.

Set up

To set up shift allowances:

Go to the Time & Attendance section;
Click on the Shift allowance tab;
Click +Add new allowance and input the relevant shift allowance information

A shift allowance has the following options:

Fixed amount per shift

When this option is added to the shift, if the person clocks the required number of hours for that shift, they will receive the specified amount as an adjustment in payroll. This adjustment can be set as taxable or non-taxable.

Fixed amount added to hourly rate

When this option is added to the shift, any approved clocked hours related to such shifts, will be paid at the employee's Basic hourly rate + the extra hourly rate stipulated. This will show in the payslip as the hourly rate multiplied by the number of hours clocked for the relevant shifts which include the shift allowance of this type.

For example:

Basic hourly rate = 10 euro/hour
Shift allowance = add fixed 5 euro/hour
Employee clocked 8 hours on such a shift

Therefore, employee will be paid 15 euro/ hour * 8 hours

Fixed percentage increase to hourly rate

When this option is added to the shift, any approved clocked hours related to such shifts, will be paid at the employee's Basic hourly rate + the additional percentage based on the hourly rate. This will show in the payslip as the hourly rate multiplied by the number of hours clocked for the relevant shifts which include the shift allowance of this type.

For example:

Basic hourly rate = 10 euro/hour
Shift allowance = add 10% increase to hourly rate
Employee clocked 8 hours on such a shift

Therefore, employee will be paid 11 euro/ hour * 8 hours

Apply pro-rata

Furthermore, for each of the allowance options (fixed amount per shift, fixed amount per hour, and percentage), and in cases where a person does not clock in for the whole shift, you may set the allowance to apply pro-rata.

For example:

Night shift: 19:00 - 07:00
Night shift allowance is given only between 22:00 - 03:00

This means that if the person clocks between 22:00 - 03:00, they will get the allowance pro-rata.

Once shift allowances are set, go to the shift templates tab and link the shift allowance to the relevant shift template/s.

If the schedule is already created and/or published, you will need to unpublish and clear the shifts first. Then, re-generate the shifts, in order for the new settings to be included in the shifts generated.

Apply on specific days

Finally, you may also specify the days when the shift allowance will be applied. The options are:

Any day: This means that the shift allowance will be granted to all employee who work a shift (falling on any day) which has a shift allowance assigned to it.
Standard: This means that the shift allowance will be granted to all employee who work a shift (falling on any weekday excluding public holidays) which has a shift allowance assigned to it.
Saturday: This means that the shift allowance will be granted to all employee who work a shift (falling on a Saturday) which has a shift allowance assigned to it.
Sunday: This means that the shift allowance will be granted to all employee who work a shift (falling on a Sunday) which has a shift allowance assigned to it.
Public Holiday: This means that the shift allowance will be granted to all employee who work a shift (falling on a Public Holiday) which has a shift allowance assigned to it.
Public Holiday on a Sunday: This means that the shift allowance will be granted to all employee who work a shift (falling on a Public Holiday which is a Sunday) which has a shift allowance assigned to it.