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

• The Effective Wage Date option is not available if Wage Sync is enabled with a POS integration.
• Wages can be retroactively applied for up to 30 days in the past.
• Wage changes will not affect third-party data or 7shifts Payroll that has already been processed.
• Only one future-dated wage change can exist at a time. If a second future wage change is added, the first is automatically removed.
• Employee wages and salaries are included in the Labor Budget Tool and labor reports depending on their assignments within their employee profiles.
• Updating the minimum wage within Company Settings does not automatically adjust individual employee wages.

Wage types

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 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 in labor reports (e.g. Worked Hours & Wages report) based on the employee's salary allocation settings. Learn more about how weekly salaries are calculated.
• Annual salary – The employee earns a fixed yearly amount. 7shifts automatically divides the annual salary by 52 to determine the weekly distribution.

Setting hourly wages

For hourly employees, wages are set per role directly on the Wages and payment tab. If the employee is assigned to multiple locations or roles, use the All locations and All roles filters to narrow the view.

How salary allocation splits work

By default, 7shifts distributes a salaried employee's weekly pay evenly across all assigned locations. Admins and managers can customize this using salary allocation, which lets you split a salaried employee's wages across locations by percentage (e.g. 70% to Location A, 30% to Location B).

Within each location, the salary is further distributed as follows:

1. Department split – Within each location, the salary amount is divided evenly across the employee's assigned departments. The Appear on Schedule setting controls whether the salary shows on the Labor Budget Tool per department — if unchecked for a department, that amount won't appear in the budget view. This does not affect labor reports or what the employee is paid.r.
2. Daily split – The resulting department amounts are spread across the selected days of the week set in the employee's daily allocation settings.

Setting weekly salaries

Setting annual salaries

An annual salary allows you to enter the total yearly compensation for an employee. 7shifts automatically divides the annual salary by 52 weeks to determine the weekly amount, which is then distributed across locations based on the employee's salary allocation settings. By default, this is split evenly across all assigned locations.

For example, an employee with a $52,000 annual salary will have $1,000 distributed each week. With the default even split across two locations, 7shifts attributes $500 in weekly costs to each location. Custom splits can be configured using Salary allocation across locations.