Hourly Wages and Salaries Overview

Choosing the right wage type ensures accurate labor budgeting, efficient scheduling, and precise reporting. Whether managing payroll, forecasting expenses, or analyzing labor through dashboards, proper wage setup keeps your team’s finances transparent and well organized.

In 7shifts, there are three types of pay rates that can be used to calculate labor costs for employees and managers: hourly wages, weekly salaries, and annual salaries.

Choosing a Wage Type

Under an employee’s profile, you can select one of the following wage types:

• Hourly Wage: The employee earns a set amount for each hour worked. Labor costs are based on scheduled or actual hours worked. This is the default option for new users.
• Weekly Salary: The employee earns a consistent weekly amount, regardless of the number of hours worked or scheduled. Their salary is distributed evenly across the locations and departments they are assigned to in 7shifts.
• Annual Salary: The employee earns a fixed yearly amount, regardless of the number of hours worked or scheduled. Their salary is distributed evenly across the locations and departments they are assigned to in 7shifts.

Settings Hourly Wages

Mobile Web

1. Go to More > My Team > [Employee Name] > Edit.
2. Under Wage Type, select Hourly.
3. You can assign either a single hourly wage or use Wage-based Roles to assign different rates for different roles.

1. Go to Team > Employees > [Employee Name] > Wages and payment.
2. Select Change Pay
3. Under Wage Type, select Hourly.
4. You can assign either a single hourly wage or use Wage-based Roles to assign different rates for different roles.
    
5. Set the Wage and the Effective Date and click Save.

 

 

Wage-based Roles

When enabled, employees can earn different hourly rates depending on the role they are scheduled for. This is configured in each employee’s profile.

⚠️ Note: Wage-based Roles is required for the ‘Wage Sync’ feature when using certain POS integrations.

Learn more about Wage-based Roles here.

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Setting Weekly Salaries

Mobile Web

1. Go to More > My Team > [Employee Name] > Edit.
2. Under Wage Type, select Weekly Salary.
3. Set a new wage, or click Save.

1. Go to Team > Employees > [Employee Name] > Wages and payment.
2. Under Wage Type, select Weekly Salary.
3. Set the Salary amount and Effective date and click Save.

 

 

When a weekly salary is entered:

• The amount is split evenly across the locations and departments where the employee is assigned to "Appear on schedule."
• On the Labor Budget Tool and Dashboard, the salary is distributed evenly across all 7 days of the week.
• The distribution is also reflected in reports such as Worked Hours & Wages and Scheduled Hours & Wages.

Example 1: An employee with a $1000 weekly salary is assigned to two departments under one location. Each department receives $500 in labor cost allocation.

Example 2: An employee with a $1000 weekly salary is assigned to:

• FOH and BOH at Location A
• FOH at Location B

The salary is first split evenly between the two locations ($500 each). Then, at Location A, it’s split further between FOH and BOH ($250 each). Location B’s FOH receives the remaining $500.

Pro Tip! You can exclude a department from receiving salary allocation by disabling Appear on schedule for that department in the employee’s profile.

⚠️ If you change an employee’s Appear on schedule settings after a salary has already been entered, this update will retroactively adjust how their salary is distributed in historical labor data and reports.

For example, if you disable Appear on schedule for a department they were previously assigned to, that department’s past labor costs will be recalculated to reflect the new configuration.

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Setting Annual Salaries

Mobile Web

1. Go to More > My Team > [Employee Name] > Edit.
2. Under Wage Type, select Annual Salary.
3. Set a new wage, or click Save.

1. Go to Team > Employees > [Employee Name] > Wages and payment.
2. Select Change Pay
3. Under Wage Type, select Annual Salary.
4. Set the Salary amount and Effective date and click Save.

An annual salary allows you to enter an employee’s total yearly compensation. Once entered:

• The salary is automatically divided by 52 weeks.
• That weekly amount is then allocated across all assigned locations and departments, based on where the employee is set to "Appear on schedule."
• On labor tools and reports, the weekly portion of the salary is split evenly across all 7 days of the week.

Example: An employee with a $52,000 annual salary will have $1,000 distributed each week. If they’re assigned to two departments, each department will be allocated $500 weekly.

⚠️ Tip: Just like weekly salaries, you can exclude departments from allocation by disabling "Appear on schedule" for that department.

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Once you’ve selected the appropriate wage type, you can learn how to update or adjust employee pay settings here.