Pay rate rules
Before you start
Ensure the employee uses timesheets. Know their contracted hours and pay frequency. If you plan multiple rules, decide their priority because order affects results.
Enabling additional pay rates
Firstly enable additional pay rates:
1. Go to Settings > Payroll settings on the left sidebar
2. Click the Contract groups tab
3. Go into the Additional pay rates drop down
4. Select Active as the status for additional pay rate 1 & 2
You can also edit the pay rates employee’s receive to be be rates other than time and a half or double time.
You can change:
- Description of the pay rate
- Status
- Multiplier
- Hourly rate (Note: you can only choose either multiplier or hourly rate, not both)
Note: You can only have two additional pay rates.
How to set up a pay rate rule
Once additional pay rates are enabled, you can set up pay rate rules for employees.
1. Go to People in the left sidebar
2. Open the employee profile
3. Select the Pay rate rules tab
4. Click Add rule
5. Configure the rule and select Save
Configure the rule
Use these settings to define when the rule triggers and what rate applies.
Set threshold
This determines when the rule turns on. Choose the number of hours and the time period to measure against, such as a day, a week, a pay period, or specific days. If you include leave hours, approved leave counts toward the threshold. Excluding leave counts only worked hours.
Set new pay rate
Choose the rate that applies once the threshold is reached:
- Time and a half: 1.5x the normal rate
- Double time: 2x the normal rate
- Standard pay: the normal rate, useful for uncontracted days or day-based rules
Example: Time and a half on contracted days
Carla works 8 hours per day, Monday to Friday. When she works more than 8 hours in a day, hours over 8 are paid at time and a half. Leave isn’t counted toward the daily threshold.
Example: Double time in a pay period
William is paid fortnightly and contracted for 80 hours per pay period. When he exceeds 80 total hours in the period, additional hours are paid at double time. Leave is counted toward the 80‑hour threshold.
Example: Standard pay for non‑contracted days
Justine’s contracted days are Monday to Friday. When she works on Saturday or Sunday, those hours are paid at her standard rate. Leave is not relevant for days she isn’t contracted to work.
Edit, deactivate, or delete a rule
1. Open the employee’s Pay rate rules
2. Click the three dots on the rule
3. Choose Edit, Make active/inactive, or Delete
Changing a rule to inactive affects future pay runs and can be turned back on. Making a rule inactive disables it for all employees using that rule. Rules that have already been used in a processed pay can’t be edited. If terms change, delete the old rule and create a new one.
