Skip to main content

Set up, calculate, and manage salary surcharges

Set up salary surcharges to automatically adjust employee hourly rates for work on public holidays, weekends, or specific times.

Written by Franzi Schuetzer

Prerequisites

Make sure the following is set up before creating salary surcharges:

  • Attendance enabled under Settings > Features > Attendance

  • Attendance tracking enabled per employee under Employee profile > Personal > Enable attendance tracking

  • Salary stored for all employees who should receive surcharges. Under People > select employee > Compensation > Salary

  • Public holiday calendar assigned: If surcharges apply to public holidays, the correct calendar must be assigned to the company or office.


Create a salary surcharge

  1. Click (+) Add salary surcharge

  2. Complete the four steps of the setup wizard:

Step 1: General

Field

Description

Name

A unique name for the rule, e.g. Sunday surcharge

Description

Optional — internal note

Step 2: Conditions

Define when the surcharge applies. You can combine one or more conditions:

Condition

When to use

Public holidays

Surcharge applies on all public holidays according to the company calendar

Specific day and time

Surcharge applies on specific weekdays and times — select All day for 00:00–24:00

Attendance category

Surcharge applies only when time is tracked with a specific attendance category

Step 3: Surcharge rate

Enter the percentage markup on the employee's hourly rate (100–300%).

The most common surcharge rates in Germany:

  • 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:

An employee earning a base wage of €10 receives the following additional payments:

  • 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 in the employee profile under Compensation > Salary. This rate is automatically calculated from the monthly salary, but can be manually overridden.

For salaried full-time employees, it is recommended to use an hourly rate. The calculation is: average hours worked per month or working hours in the schedule × 52.2 / 12

Example:

An employee earning €24,000 per year working 40 hours per week:

  • Average monthly hours = (40 × 52.2) / 12 = 174

  • Hourly rate = (24,000 / 12) / 174 = €11.494

An employee earning €24,000 per year working 20 hours per week:

  • Average monthly hours = (20 × 52.2) / 12 = 87

  • Hourly rate = (24,000 / 12) / 87 = €22.89

Step 4: Start date

Field

Description

Start date

The date from which the rule applies. A date in the past does not affect already confirmed payrolls.

End date

Optional — only fill in if the rule is time-limited

  • Click Add surcharge.


Assign employees

  1. Go to Attendance > Settings > Salary Surcharge Policies

  2. Click the three-dot menu > Manage employees on the desired surcharge

  3. Click (+) Assign employees

  4. Search or filter for employees and click the (+) to add them

  5. Click Assign employees

Employees can also be assigned individually in the employee profile under Compensation > Salary — useful for Finance admins without access to Attendance settings.

If No salary appears next to an employee's name, there is no active salary stored for them. Add a salary under People > select employee > Compensation > Salary. The surcharge takes effect from the salary start date. A yellow warning triangle indicates that attendance tracking is not active for that employee.


Edit a salary surcharge

  1. Go to Attendance > Settings > Salary Surcharge Policies

  2. Click Three-dot menu > Edit surcharge rule

Editable fields: Name, Description, and End date. Conditions and surcharge rate cannot be changed after creation.

If conditions or the rate need to change: set an end date on the existing rule and create a new rule with the updated rate and a new start date. When assigning, you can filter by the old rule name to quickly carry over all affected employees.


Delete a salary surcharge

  1. First remove all employees from the rule under Three-dot menu > Manage employees > Actions > Remove

  2. Go back to the overview and click Three-dot menu > Delete surcharge rule

Deletion cannot be undone. Already confirmed payroll data is not affected.


View surcharge payments in payroll

Surcharge payments appear in payroll in the Salary Surcharge Payments column. Click the value to open the breakdown:

  • Hourly rate — the stored hourly rate for surcharges from the employee profile

  • Tracked time — hours that met the conditions of the rule

  • Additional rate — the amount on top of the base salary per hour

  • Additional payment — tracked time × additional rate

If an employee triggered multiple surcharge rules in the same period, each rule is listed separately. If two rules apply to the same hour, the rule with the higher percentage takes precedence.


Frequently asked questions

Why doesn't an employee appear in the assignment list?

The employee may not have attendance tracking enabled or no salary stored. Check both in the employee profile under Personal > Enable attendance tracking and Compensation > Salary.

Can I change the surcharge rate after creation?

No. Set an end date on the existing rule and create a new rule with the updated rate and a new start date.

Why doesn't the hourly rate in the breakdown match the salary?

The rate used is the hourly rate for surcharges in the employee profile — not the simple value derived from the monthly salary. If it was manually overridden, it may differ. Find it under People > Compensation > Salary > Hourly rate for surcharges.

What happens if no salary is stored?

The surcharge only takes effect once a salary with a start date is stored. The system shows No salary next to the employee's name.

Did this answer your question?