The employee’s contract is where you input the employee’s compensation and rates. You can set up the employee’s pay mode, base pay and working hours. Allowances are also added here if employee is entitled to an allowance.

Here’s how to set up the employee’s contract

1. On the Employee Profile, go to Contracts

2. Click Add a Contract

3. Input the required details and then click Create Contract

a. Effectivity Dates – start and end day of the contract (leave end date blank for indefinite contract)

b. Pay Mode – Monthly, Hourly or Salary (What are Pay Modes?)

c. Basic Monthly Pay – Base monthly pay of the employee

d. Working Hours – the average worksdays per week of the employee and hours worked per week

e. OT Base Monthly Pay – Use 2,250 for Non Workmen & Use 4,500 for Workmen

f. OT Mode – Weekly or Daily

g. OT Threshold Hours – Hours worked before OT Rates are triggered

h. Deduct Using – Basic or Gross

i. Allowances – Set the Allowance Type and input the amount

4. The new contract would be added on the Contracts page of the employee

5. If you wish to edit the Contract, you can always do so by clicking the Edit Icon 

That’s how you create a Contract for your employee. For questions and suggestions, message us at support@payrollhero.com.