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Contract - Payroll

4 min. readlast update: 11.16.2025

People Management – Contract: Payroll

Purpose

The Payroll tab within the Contract module centralizes all salary-related and bank information associated with an employee’s active contract.
It provides HR and Finance teams with a unified view of the employee’s compensation configuration, salary history, and payment account details, ensuring accurate payroll processing and compliance with internal salary policies.

Navigation Path

People Management → Contracts → [Select Contract] → Payroll

Overview

The Payroll section contains two main areas:

  1. Salary – Displays the employee’s current salary configuration, history, and allows salary updates (hikes).

  2. Bank Accounts – Stores the employee’s payroll bank information for payment purposes.

1. Salary

Main Elements

  • Hikes: Shows the number of salary increases performed.

  • Revisions: Displays the count of revisions made to existing salary entries.

  • Years at Company: Automatically calculated based on the employee’s start date.

  • Last Increase in Value / Percentage: Displays the latest salary increase in both amount and rate.

Evolution Section

This area summarizes the current salary configuration and its associated policy:

Field Description
Start Date Effective start date of the current salary setup.
Annual Base Salary Annualized salary amount based on defined periods.
Periods Defines how the salary is distributed (e.g., 12 or 14 months).
Monthly Base Salary Base monthly salary calculated from the annual value.
Hourly Base Salary Derived hourly rate based on total working hours.
Vacation Days per Year Number of annual vacation days defined in the contract.
Salary Policy Salary structure or policy applied to this contract (e.g., “Salary Policy PT”).
Shift Allowance / Work Hours Exemption / Other Allowances / Meal Allowance Additional compensations tied to the employee’s role or work conditions.
Compensation Days per Year Number of compensatory leave days per year.
Reason Displays the justification for the latest hike or salary adjustment.

History & Add Hike

The History button displays all past salary changes with their respective dates and reasons.
The Add Hike button enables HR to create or update salary configurations.

2. Add Hike

Path

Payroll → Salary → Add Hike

This window allows creating or updating salary values according to organizational changes, promotions, or policy adjustments.

Configuration Fields

Field Description
Start Date Date when the new salary configuration becomes effective.
Fiscal Year Fiscal period for which the salary applies.
Process Type Defines the type of process (e.g., Contracting Process, Annual Adjustment).
Policy Salary policy defining calculation structure and rules.
Value Salary level or grade linked to the salary policy (e.g., “Salary Level II”).
Periods Number of salary payments per year.
Monthly Base / Annual Base / Hourly Base Salary values automatically calculated or manually adjusted.
Work Calendar Defines the working days and hours per week.
Hours per Week / Day Weekly and daily working hours as per contract.
Days of the Week Defines which days are part of the employee’s active working schedule.
Reason Justification for the salary change (optional but recommended).

Available Actions:

  • Add – Save and apply the salary change.

  • Add and New – Save and immediately create another hike record.

  • Cancel – Exit without saving.

3. Bank Accounts

Path

Payroll → Bank Accounts

This section defines the employee’s payment destinations.

Field Description
Name Identifier for the bank account (e.g., “Main Account”).
IBAN International Bank Account Number for salary deposit.
SWIFT Bank Identifier Code.
Primary Marks one account as the main destination for payroll.

Multiple accounts may be configured if needed, but only one can be designated as Primary.

Usage Notes

  • Ensure all salary configurations are defined before activating a contract.

  • Salary changes through the Add Hike function automatically update the employee’s payroll record.

  • The system keeps a complete history of salary and allowance changes for audit and reporting purposes.

  • The Bank Accounts tab must contain at least one active, primary account for payroll processing.

Best Practices

  • Align all salary policies with corporate compensation standards before assigning them to contracts.

  • Use descriptive reasons when applying salary hikes to maintain historical clarity.

  • Review the History tab periodically for consistency and traceability.

  • When modifying bank accounts, verify that the correct account remains marked as Primary.

Summary

The Payroll tab in Contracts integrates all compensation and payment-related data, connecting HR and Finance workflows into a single, auditable record.
It ensures each employee’s contract reflects the most current salary, benefits, and payment details — maintaining accuracy and compliance across payroll operations.

Related Articles

Contracts – Personal Information
Contracts – Benefits
Contracts – Cost Management
Salary Policies Configuration

 

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