Additional compensation
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Additional Compensation is any added pay given to the employee in addition to their regular base/gross salary. The frequency can be selected for the compensation. Frequencies to choose from include: monthly, bi-monthly, semi-monthly, annually, quarterly, tri-annually, and semi-annually, depending upon the type of compensation.
Types of additional compensation that can be added during the onboarding of a new employee:
A joining bonus refers to the bonus given to the employee at the time of joining and will be mentioned in the contract. The actual payout of the joining bonus can be defined by setting the month and year, as well as the amount that needs to be paid.
During onboarding a new employee, you can add the details of the joining bonus, such as the amount, the payout month, and any additional notes.
You can also add the joining bonus amount in installments. This means the employee will be paid the joining bonus in parts according to the payout months you specified.
Once you have added all the relevant information, Multiplier processes the joining bonus:
The joining bonus will be auto-created and added as a pay supplement in the month specified as the payout month by the employer during onboarding.
The pay supplement will appear under the Processing tab with a Created status in the platform's Pay supplements module.
The bonus will be processed to the employee in the specified month’s pay cycle.
Note
For semi-monthly employees, pay supplements will be processed in the 1st or 2nd pay cycle based on when the pay supplement is created.
As the name suggests, a variable performance bonus refers to a bonus given to the employee for their performance. The frequency and payout month can be set during the onboarding. But the amount is not entered during onboarding as it depends on multiple factors such as the company's performance, the employee's performance, and other macro/micro conditions.
The variable performance bonus will be added as a pay supplement by Multiplier’s team in the month specified by the employer during onboarding.
The pay supplement will appear under the ‘Pending’ status in the pay supplement module on the platform.
Once the pay supplement has been added, an email will be sent to the admin(super/global/admin) asking to input the variable performance bonus amount in the pay supplement by editing it using the ‘pencil’ icon.
Once the admin fills in the amount, the pay supplement will move to the ‘Processing ’tab with the status ‘Created’.
The bonus will be processed to the employee in the pay cycle after the admin has added the amount to the pay supplement.
Note: If the admin doesn't add the amount to the pay supplement before the cut-off date, the bonus will not be processed in the upcoming pay cycle.
Allowances refer to monetary benefits given to employees over and above their salary.
The following are the types of allowances you can choose from to add during onboarding :
Mobile and Phone Allowance
Internet Allowance
De Minimis
Other Allowances (title of allowance type can be added)
The amount given as an allowance can fall under two types:
Here, the amount of allowance is fixed and will be automatically paid to the employee depending on the frequency set by the employer (monthly, bi-monthly, semi-monthly, annually, quarterly, tri-annually, semi-annually )
Note: Once set during onboarding by the employer, the amount and frequency will be considered for processing during the pay cycle, and the amount will be paid out to the employee along with their salary.
The allowance amount is subject to administrative expense approval before it is paid out.
For example, an employer gives employees a variable allowance for internet expenses. This means the employer can decide the amount of allowance given every month. Let’s say in May, the employer gives $50, but in June, the amount does not need to be the same. It can be less or more, depending on the company’s allowance policy. The employer also has the choice to pay only the amount for which the internet bill is submitted. This is what is called a variable allowance.
The frequency for variable allowance can be set as well. Frequencies to choose from include: monthly, bi-monthly, semi-monthly, annually, quarterly, tri-annually, and semi-annually.
Currently, on the Multiplier platform, the agreement upon variable allowances is between the employer and employee.
Multiplier processes the payment according to the agreement.
The employee needs to claim expenses according to the employer's instructions.
The employee can add an expense from the ‘Expense’ module on their platform and request approval from the admin. Based on the approval, Multiplier will process the amount.
The admin can also pay variable allowances by adding a pay supplement for the same in the month it will be given to the employee. This needs to be added under the pay supplements tab on the multiplier platform. The same will be processed in the upcoming pay cycle by Multiplier.
Note
Other additional pay items can be added based on the employer's requirements. The title of the pay type needs to be added. You can also add the frequency from any of the following: monthly, bi-monthly, semi-monthly, annually, quarterly, tri-annually, semi-annually, or even once. The month the additional pay item must be processed must also be set while onboarding.
The pay item falling under ‘Others’ will be added as a pay supplement by Multiplier in the month specified by the employer during onboarding.
The pay supplement will appear under the 'Pending' status in the Pay Supplement module on the platform.
Once the pay supplement has been added, an email will be sent to the admin requesting that the amount be entered for that pay supplement.
Once the admin fills in the amount, the request moves to the ‘Processing’ tab.
The amount will be processed to the employee after the admin has added the actual amount to the respective pay supplement.
If the employee has been activated before the, the joining bonus will be processed in the same month; otherwise, the joining bonus will be processed in the upcoming pay cycle.
If the admin doesn't add the amount to the pay supplement before the, the bonus will not be processed in the upcoming pay cycle.
The employee will also need to claim expenses before the.
