Creating a salary surcharge

In Kenjo, surcharges denote additional compensation that employees receive when working under specific circumstances, such as Sundays, night shifts, or during public holidays. It's important to note that these surcharges are not part of an employee's contractual basic wage, but are instead supplementary payments. They are typically agreed upon within individual employment contracts, collective agreements, or company-specific agreements.

To effectively set up salary surcharges in Kenjo, you should follow these preparatory steps:

• Enable attendance for your account: If not already done, go to Settings and activate the Attendance feature.
• Enable attendance for employees: Attendance tracking is crucial for the software to determine when an employee is working. Navigate to each employee's profile and click on Enable attendance tracking in the right-side panel.
• Add salaries for employees: Ensure that all employees who are eligible for surcharges have an active salary when the surcharge comes into effect. You can add salaries by going to Employee Profile > Compensation tab > Salary or use the import feature.
• Verify public holidays: Since public holidays impact surcharges, it's essential that both your company and employees have the correct calendar assigned. You can find more information on how to set up Public holidays on this article from our Help Center.

After completing these steps, proceed to Attendance > Settings and select Salary surcharges to begin configuring your surcharges.

Adding a Salary Surcharge

Click on (+) ADD SALARY SURCHARGE to initiate the setup process. Here are the key details you need to provide:

• General Information:
  • 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:
  • 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.
• 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. To gain a deeper understanding of how this rate is applied, you can refer to our dedicated article.
• 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.

For example, let's say that employees receive a 200% rate for hours worked on Sundays and Public holidays. To set up this rule, you would create the following surcharge:

• Name: Sunday and public holidays
• Description: Additional payment for working on Sundays or public holidays
• Conditions:
  • Check the box for public holidays
  • Select Sunday and check the "All day" box
• Rate: 200%
• Effective Date: Specify the date

The result: Employees subject to this rule who track attendance on Sundays or public holidays will receive double their hourly rate for the hours worked.

By following these steps, you can effectively manage and implement salary surcharges in Kenjo to ensure fair and accurate compensation for your employees.

Assign employees in bulk

Once you've created your surcharge rule, the next step involves assigning it to employees or keeping it unassigned for future use. 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. 

In the case of bulk assignment, you'll encounter a list of all available employees, which can be filtered using the filters provided at the top. You have the flexibility to add individual employees or make bulk assignments.

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.

Alerts in the surcharge rules

You might come across two types of alerts next to an employee 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.

To manage salaries or make edits to employees' compensation details, navigate to Employee > Compensation > Salary.

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, visit Employee > Personal > Enable attendance tracking.