To effectively set up salary surcharges in Kenjo, follow these preparatory steps:
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After completing these steps:
Proceed to Attendance > Settings
Select Salary surcharges to begin configuring your surcharges
1. You can also watch this explainer video, that guides you through the steps:
2. Add a Salary Surcharge
Click on (+) ADD SALARY SURCHARGE to initiate the setup process. Here are the key details you need to provide:
✅ General:
Name: Specify a name for the surcharge
Description: Provide a brief description of the surcharge
✅ Conditions:
Under this section, you can define when the surcharge will be applicable. You can choose either or both of the following options:
Attendance Category: Decide whether the salary surcharge rule should not require an attendance category or is only applied when they is an attendance category selected.
Public holidays: This considers the company-specific calendar, including custom public holidays
Specific day and time: Here, you can select particular days and times when the surcharge applies, including the option for All day in which the surcharge begins at 00:00 on the chosen day
Note:
Let's take an example: Our new salary surcharge rule applies for the whole day on Sundays and public holidays:
Click NEXT
✅ Surcharge rate:
You're asked to select a percentage increase over the hourly base salary. Choose a number between 100 and 300 to define the rate.
Step 3: Surcharge Rules: Calculate Salary Surcharges
Enter the percentage markup on the employee's hourly rate (100–300%).
In Germany, the most common salary surcharges are:
Night shift: 125% surcharge rate
Sunday: 150% surcharge rate
Public holidays: 125% surcharge rate
A surcharge rate of 150% means the employee receives an additional 50% of their hourly rate for every hour that meets the condition. For an hourly rate of €20, this equals an extra €10 per hour.
Example:
A person earning a base wage of €10 would receive the following additional payments based on the examples above:
Night shift: an additional €2.50 for every hour worked during a night shift
Sunday: an additional €5 for every hour worked on a Sunday
Public holidays: an additional €2.50 for every hour worked on a public holiday
Important: The basis for this calculation is the hourly rate for surcharges found in the employee profile under Compensation > Salary. This rate is automatically calculated from the monthly salary, but it can be manually overridden.
Even for salaried, full-time employees, it is recommended to use an hourly wage. The calculation is based on: Average hours worked per month or working hours in the schedule ×52.2/12.
Example:
For an employee who earns €24,000 per year and works 40 hours per week:
Average working hours per month = (40×52.2)/12=174
Hourly rate = (24,000/12)/174= €11.494
For an employee who earns €24,000 per year and works 20 hours per week:
Average working hours per month = (20×52.2)/12=87
Hourly rate = (24,000/12)/87= €22.89
This method ensures that the surcharge rules for salaried employees are accurately determined based on their salary and monthly working hours.
Note:
Let's go back to our example: Employees receive a 200% rate for hours worked on Sundays and Public holidays. So Employees subject to this rule who track attendance on Sundays or public holidays will receive double their hourly rate for the hours worked.
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✅ Effective date:
Specify the date on which the surcharge will become effective. You can select any date in the future. Keep in mind that selecting a past date won't impact payrolls already confirmed in the payroll summary.
End date (Optional): You can optionally add an end date. It's advisable to leave this field empty unless you know that the surcharge and its conditions are applicable for a limited period.
Click NEXT
By following these steps, you can effectively manage and implement salary surcharges in Kenjo to ensure fair and accurate compensation for your employees.
3. Assign employees
Once you've created your surcharge rule, the next step involves assigning it to employees or keeping it unassigned for future use.
Navigate to Attendance > Settings > Salary surcharges
Find surcharge rule
Click the three-dot-icon on the row's right
Select Manage Employees
Click (+) ASSIGN EMPLOYEES
Apply the filters to search for specific employees or use the search bar left of the magnifying glass
Click the blue (+) to add employees and the trash-icon to delete them
Click ASSIGN EMPLOYEES to save your selection
Note:
When no salary is saved in an Employee's profile, you will see No salary next to the employee's name. You need to first add a salary via People > Compensation tab in the horizontal menu > Salary.
4. Assign employees in bulk
It's worth noting that bulk assignment can only be performed within the attendance settings, and access to this feature is limited to Admins and HR admins. Nevertheless, Finance admins also have the ability to individually assign surcharges to employees under the employee's compensation tab.
Find the blue ADD ALL at the bottom of the available employees column to add all employees or all employees you have pre-selected via the filters at once.
Hinweis:
Note: Consider using the Salary surcharges filter - this enables you to quickly identify employees who have already been assigned to previously created surcharges. This way, you can easily manage surcharge assignments.
5. Alerts in the surcharge rules
There are two possible alerts:
As already mentioned, you might come across the no salary while assigning surcharge rules in bulk:
No salary: This alert indicates that the employee doesn't have an active salary on the current date you are creating the surcharge. It's important to note that this date may differ from the starting date of the surcharge rule. If the surcharge rule starts prior to or on the same day as the current date, the surcharge won't take effect until a salary is added.
However, there is an edge scenario where a salary will be added in the future, and in that case, the surcharge rule will come into effect from that future date.
Example:
You create a Surcharge rule with a starting date of 01.01.2023.
Today's date is 01.07.2023.
Employee A's salary is scheduled to begin on 01.08.2023.
In this situation, the system will alert you that there is No salary, meaning the surcharge will only take effect from 01.08.2023 when the salary becomes active.
Yellow alert triangle: Additionally, you may encounter a yellow alert triangle, which signifies that the employee does not have attendance tracking enabled.
To enable attendance tracking:
Go to Employee > Personal > Enable attendance tracking