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Set up, calculate, and manage salary surcharges

Set up salary surcharges as a percentage or a fixed amount per hour to pay 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

Selected weekdays and time ranges

Surcharge applies on specific weekdays, for example Sundays

Public Holidays

Surcharge applies on all public holidays according to the company calendar

Specific dates of the year

Surcharge applies on fixed calendar dates, for example 24 December or 1 May

Attendance category

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

Limit a surcharge to a time window

A time window limits the rule to part of the day, for example from 14:00 on 24 December. It applies to every condition: selected weekdays, public holidays and specific dates of the year.

  1. Under Time window, untick All day.

  2. Enter the start and end time. To finish at midnight, enter 00:00 as the end time.

Leave All day ticked if the rule should pay every hour worked that day.

Pay the hours after midnight

Tick Starts on the next day to pay hours after midnight that fall on the day after the selected day. The option only pays shifts that started before midnight. A shift that starts at 00:00 or later does not receive it.

  • The days you select are the days the shift starts. For example, a rule for Friday with Starts on the next day and a window of 00:00 to 04:00 pays the early hours of Saturday to a shift that started on Friday evening.

  • With the option ticked, the window must end at 10:00 at the latest, and the end time must be after the start time.

  • On public holiday and specific-date rules, the option pays hours in two cases: the early hours of the day after the holiday, to a shift that started on the holiday, and the early hours of the holiday itself, to a shift that started the evening before.

Important: On specific dates of the year, use Starts on the next day only on days whose rate covers the whole day, for example 1 May and 25 and 26 December. On 24 and 31 December the rate starts at 14:00. There, the option would also pay that morning's early hours at the day's rate. Kenjo shows a warning.

Step 3: Surcharge rate

Decide how Kenjo pays the surcharge. Under How is it paid?, choose one of two options:

Option

What employees receive

Input

Percentage of the hourly rate

A markup on the employee's hourly rate

Surcharge rate in percent, at least 100% and at most 300%

Fixed amount per hour

The same extra amount for every hour in the time window, whatever the hourly rate

Amount per hour in €/h, from 0.01 to 1,000, at most 2 decimals

Percentage of the hourly 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 €15 receives the following additional payments:

  • Night shift: an additional €3.75 for every hour worked during a night shift

  • Sunday: an additional €7.50 for every hour worked on a Sunday

  • Public holidays: an additional €3.75 for every hour worked on a public holiday

Important: With Percentage of the hourly rate, the basis for the 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. With Fixed amount per hour you do not need it. An active salary must still be stored.

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

This method ensures that surcharge rates for salaried employees are determined accurately, based on salary and expected monthly working time.

Fixed amount per hour

Enter the amount employees receive on top for every hour in the time window. The amount is between €0.01 and €1,000 per hour, with at most 2 decimals.

A fixed amount of +€3.00/h means: the employee receives an extra €3 for every hour that meets the condition. This applies at any hourly rate. For 4 hours of night shift, that is an extra €12, whether the hourly rate is €10 or €25.

Important: Fixed amounts are always paid, even when another rule covers the same hours.

Important for DATEV users: Kenjo only sends the surcharge hours to DATEV, not the amount. Enter the fixed amount in DATEV on the Lohnart (wage type) you mapped to this rule in Kenjo. A Lohnart is the DATEV code for a type of payment, for example a night surcharge. Without the amount in DATEV, the surcharge is not calculated there. You set the Lohnart under Payroll > DATEV settings > Variable payment.

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.


Map surcharges under § 3b EStG

With a time window and Starts on the next day, you can map the surcharge bands for Sunday, public holiday and night work under § 3b of the German Income Tax Act (EStG), published by the Federal Ministry of Justice at gesetze-im-internet.de. The rates in the table are total rates, including 100% base wage. They apply to the Percentage of the hourly rate option.

What you want to pay

Days

Time window

Starts on the next day

Surcharge rate

Christmas Eve from 14:00

Specific dates of the year: 24 December

14:00 to 00:00

No

150%

New Year's Eve from 14:00

Specific dates of the year: 31 December

14:00 to 00:00

No

125%

Night hours on public holidays, evening

Public Holidays

20:00 to 00:00

No

150%

Early morning hours on public holidays

Public Holidays

00:00 to 06:00

No

150%

Public holiday night rate from 00:00 to 04:00 for shifts that started the evening before

Public Holidays

00:00 to 04:00

Yes

165%

Night rate from 00:00 to 04:00 only for shifts that started the evening before

All weekdays

00:00 to 04:00

Yes

140%

Overlapping percentage rules are not added together. If two percentage rules cover the same minutes, Kenjo pays those minutes at the higher rate. For a combined rate, for example public holiday and night, create one rule with the combined rate and limit it to the night hours.

Fixed amounts are always paid on top. If a rule with a fixed amount covers the same minutes as a percentage rule, the employee receives both. Several rules with a fixed amount on the same minutes are all paid as well.

Rules for public holidays and specific dates end at midnight. Such a rule cannot extend past 00:00. Set the end time to 00:00 and create a second rule with Starts on the next day for the hours after midnight.

Shifts with two entries. Starts on the next day only works if the whole shift is a single entry that crosses midnight. If an employee clocks out before midnight and clocks in again afterwards, Kenjo counts two separate shifts. The rule for the hours after midnight then does not apply.

Breaks. Breaks within the time window are not paid with the surcharge. If two breaks overlap, Kenjo deducts the shared time only once.

Tax-free limits. Kenjo calculates the surcharge hours and the surcharge rates. Your payroll system, for example DATEV, applies the tax-free limits.


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, which is 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, the time window and the surcharge rate cannot be changed after creation.

If conditions, the time window or the rate need to change: set an end date on the existing rule and create a new rule with the updated values 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 via Payroll > Company in the Surcharge payments column. Click the value to open the breakdown:

  • Factor or Amount per hour: the percentage for percentage rules, the amount for fixed amounts, for example +€3.00/h

  • Hourly rate applied: the stored hourly rate for surcharges from the employee profile (for percentage rules)

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

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

  • Additional pay: tracked time × additional rate

If an employee triggered multiple surcharge rules in the same period, each rule is listed separately. If two percentage rules apply to the same minutes, Kenjo pays those minutes once, at the higher percentage. Fixed amounts come on top and are listed separately in the breakdown.


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 or time window after creation?

No. Set an end date on the existing rule and create a new rule with the updated rate or time window 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. This only applies to percentage rules. Fixed amounts do not use the hourly rate.

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.

How do I pay the surcharge on 24 December only from 14:00?

Create a rule with Specific dates of the year and 24 December. Untick All day and enter 14:00 as the start time and 00:00 as the end time. Leave Starts on the next day unticked.

Why doesn't a shift that starts at 00:00 receive the after-midnight surcharge?

Starts on the next day only pays shifts that started before midnight. If the shift starts at 00:00 or later, the surcharge does not apply. The same is true if the employee clocks out before midnight and clocks in again after it.

Does Kenjo apply the tax-free limits?

No, Kenjo only calculates surcharge hours and surcharge rates. Your payroll system, for example DATEV, applies the tax-free limits.

What is the difference between a percentage and a fixed amount?

With Percentage of the hourly rate, the employee receives a markup on their hourly rate. With Fixed amount per hour, the employee receives the same extra amount for every hour, whatever their hourly rate.

Are multiple surcharges added together?

Percentage rules are not added together, only the highest rate counts. Fixed amounts are always paid, also on top of a percentage rule and on top of other fixed amounts.

How do I transfer a fixed amount to DATEV?

DATEV receives the hours, not the amount. Enter the same amount on the Lohnart the rule is mapped to.

Why is the fixed amount only paid for one of two salaries?

If an employee has salaries at several companies at the same time, only the salary with the earliest start date pays the fixed amount. This way the employee does not receive it twice.

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