Set Up Employee Wages and Salaries: Pay Rates and Schedule Allocation
You can configure employee pay rates in 7shifts to manage how hourly wages, weekly salaries, and annual salaries are distributed across your locations and departments.
Things to know
Important: If you change assignment settings or the option to appear on the schedule for an employee after a salary has been entered, 7shifts retroactively adjusts how the salary is distributed in historical data and reports.
Under the profile of an employee, you can select from three distinct wage types:
-
Hourly Wage – The employee earns a set amount for each hour worked. Labor costs are calculated based on scheduled or actual hours worked.
- POS Integrations - By establishing your POS as the "Source of Truth," you eliminate manual data entry and ensure your hourly labor cost calculations always match your POS. Learn more about Wage Sync.
- Wage-based Roles lets you apply different pay rates per job.
- Weekly Salary – The employee earns a consistent weekly amount. 7shifts distributes the weekly salary across locations and departments in labor reports (i.e., Worked Hours & Wages report) based on specific assignment rules. On the Labor Budget Tool, when filtered to a department where the employee does not "appear on the schedule", the report surfaces a $0 salary for that employee. Learn more about how are weekly salaries calculated.
- Annual Salary – The employee earns a fixed yearly amount. 7shifts automatically divides the annual salary by 52 to determine the weekly distribution.
How salary allocation splits work
7shifts distributes weekly salaries using a specific hierarchy across your account structure and individual employee profile settings:
- Location Split – The weekly salary is divided evenly across all locations the employee is assigned to.
- Department Split – Within each location, the weekly salary is divided evenly across only the departments where the employee is assigned to.
- Daily Split – The resulting department amounts are spread evenly across all 7 days of the week.
Setting weekly salaries
Tip: You can exclude a department from receiving a salary on the Labor Budget Tool by disabling the option to appear on the schedule within the profile of the employee.
- Go to Team > [Employee Name] > Edit.
- Under Wage Type, select Weekly Salary.
- Set a new wage, or click Save. When saving new wage settings, be sure to re-enter the wage.
- Go to Team > [Employee Name] > Wages and payment.
- Under Wage Type, select Weekly Salary. When saving new wage settings, be sure to re-enter the wage.
- Set the Salary amount and Effective date and click Save.
Setting annual salaries
An annual salary allows you to enter the total yearly compensation for an employee. Once entered, 7shifts automatically divides the annual salary by 52 weeks. The resulting weekly amount follows the location and department split logic by dividing evenly across the assigned locations and further splitting between departments. For example, an employee with a $52,000 annual salary will have $1,000 distributed each week. If the employee is assigned to two locations, 7shifts attributes $500 in weekly costs to each location.
- Go to More > My Team > [Employee Name] > Edit.
- Under Wage Type, select Annual Salary.
- Set a new wage, or click Save.
- Go to Team > Employees > [Employee Name] > Wages and payment.
- Select Change Pay
- Under Wage Type, select Annual Salary.
- Set the Salary amount and Effective date and click Save.