How to Increase Rates of Pay in Employment Hero
Introduction
This video explains how to adjust employee pay rates in Employment Hero Payroll, including manual updates and bulk adjustments. It covers selecting individual employees or groups, applying increases by a fixed amount or percentage, and setting effective commencement dates. The video also demonstrates how to handle above-award rates, which automatically recalculate overtime and penalty rates. Using these steps helps businesses comply with SCHADS award requirements while saving time on manual updates. Viewers will also learn how to verify and review upcoming rate changes to ensure all adjustments are applied correctly.
Key Takeaways
- Individual employee pay rates can be adjusted manually via payrun defaults.
- Above-award rates can be applied, updating overtime and penalty rates automatically.
- Bulk updates allow adjustments by pay schedule, employee list, or location.
- Pay rate increases can be set by a fixed amount or percentage.
- Commencement dates for rate changes can be scheduled for today, a future pay run, or a specific date.
- Upcoming rate changes can be reviewed and adjusted retrospectively if needed.
Transcript
Introduction to Payroll Rate Adjustments
Employment Hero payrolls rate adjustment features save hours of manual updates. Our implementation team has guided countless businesses through award increases, performance raises, and industry adjustments. In this video, we'll demonstrate how to select employee groups, apply bulk increases, and set effective dates. Plus, you'll learn how to handle above-award rates and verify your changes before they take effect.
Manually Adjusting an Individual Employee
The first way we can do this is by manually adjusting an individual employee. If we wanted to just increase the rate of one employee, we can select that employee and open up their payrun defaults. Their pay rate should have automatically been pulled in based on whatever award they're on and what level and pay point they're at. Now, if you were paying above-award rates, you can tick on this override pay rate here and adjust that rate. That will also recalculate all of their overtime and penalty rates based on the new above-award rate. That is something to note.
Bulk Updating Multiple Employees
If there is a case where you need to bulk update multiple employees' rates, navigate to the Briefcase icon, click on Payroll Settings, and then click on Update Pay Rates under the Pay Conditions heading. From here, you can click on Add Employees in the top right-hand corner and search by a few different fields. For example, if you have a specific pay schedule, maybe fortnightly support or weekly admin, and you want to increase the rate for one specific pay schedule, you can select that and it pulls in all relevant employees. You can also base it on an employee list to see all employees, or for a specific location, you can pull in employees who work under that location.
Selecting Employees for Rate Adjustments
For this example, I'm going to use pay schedule and select the Fortn Le support pay schedule. You can tick all employees using the top checkbox or select whichever employees you want to adjust. I'm going to tick them all and click Save. This will pull all selected employees and give you the option to adjust their pay.
Adjusting Pay Rates and Commencement Dates
First, you'll see a column showing the current pay rate. The second column shows the amount you're adjusting it by. You can adjust by a fixed amount or a percentage. For example, if we want to give a 5% increase, we select 5% for all of them. Over here, it shows their future pay rate based on the adjustment. Then, you can select a commencement date—today, next month, or the next pay run. Once all this is filled in for your employees, click Save New Pay Rates.
Warning for Above-Award Rates
This warning is telling us that these employees currently have their pay rate based on the award rate. By saving, we are overriding it with an above-award rate. Click Continue. Now all pay rates have been updated.
Verifying and Adjusting Rate Changes
You can go to any employee file, open their payrun defaults, and view upcoming rate changes. Clicking on that will show the rate change and the date of commencement. You can make adjustments retrospectively if something was done incorrectly.