What's covered in this guide?:
Assign the appropriate pay conditions to employees using either the UK Minimum and Living Wage template or a Custom Payroll Setup.
Payroll Setup Options in the UK
UK Minimum and Living Wage Template
Custom Payroll Setup
Option 1: Apply the UK Minimum and Living Wage Template
This template helps ensure compliance with the latest UK minimum wage and national living wage regulations.
How It Works:
Automatically calculates pay based on current UK minimum and living wage rates.
Applies autopaid earnings, contracted hours, and salary settings.
Adjusts employee pay based on age and wage bands.
Includes date-driven earnings to reflect rate changes over time.
How to Apply:
Navigate to an employee’s profile.
Go to the Pay Conditions section.
Select "UK Minimum and Living Wage" from the Pay Template dropdown.
Confirm changes — the system will:
Override existing salary details.
Set contracted weekly hours.
Configure auto-paid earnings in the Payroll Details section.
Note: If the employee already has existing salary settings, those will be replaced by this template.
Important Notes:
When minimum wage rates increase (typically on 1 April), updates apply from the first full pay reference period on or after the change.
If you need to retain parts of an employee’s original pay setup, you can:
Note current settings before applying the template.
Edit pay conditions post-application.
Use the “Edit Current Pay Conditions” option for minor updates.
Option 2: Custom Payroll Setup
Use this template for greater flexibility when custom pay structures are needed (e.g., above-award rates, specific conditions).
How to Use:
Go to the employee’s profile.
Select Custom Payroll Setup from the Pay Template dropdown.
Assign the appropriate Tag or Classification.
Enter the employee’s Base Rate.
Configure additional earnings rules or overtime conditions if needed.
When to Use:
Staff are on negotiated or promotional rates.
Pay conditions differ from standard minimum wage.
Employees have unique conditions like shift loading, bonuses, etc.
You can choose to create a new Pay Conditions contract (ideal for significant changes) or edit the existing one (for small updates).
Additional Configuration Options
Link Earnings Rules to Labour Law Templates
To reflect correct pay in Time & Attendance and Payroll:
Navigate to Time and Attendance > Compliance > Custom Earnings Rule.
Open the Regular Hours rule.
Scroll to Section 4: Outcome.
Link to the UK Minimum and Living Wage Labour Law Template.
Minimum Paid Hours with Overtime Averaging (Optional)
Ensure employees are paid for their contracted ordinary hours, even if they haven’t worked enough shifts during a given period.
Key Features:
Minimum paid hours compares expected vs. worked ordinary hours.
When enabled, uses the Overtime Averaging Period instead of the pay period to determine compliance.
Any shortfall is paid in the timesheet where the averaging period ends.
To Enable:
Go to Settings > Timesheet Settings > Advanced Settings
Toggle: "Use Overtime Averaging Period for Minimum Paid Hours calculations"
Note: This setting does not re-cost timesheets automatically. Recalculation occurs only when a timesheet is modified.
Other Key Payroll Fields
Annual Salary: Configured via Pay Conditions.
Contracted Weekly Hours: Used to calculate salary and minimum pay compliance.
Payroll ID: Optional, but helps sync with external payroll systems.
Public Holiday Settings: Can be managed in the employee profile or via general settings.
Age & Pay Brackets: Automatically adjust based on Date of Birth.