How Salary Increment Works?
Introduction to Salary Increments in AutoCount HRMS
Streamlined wages management in AutoCount HRMS now includes an increment feature that simplifies tasks for HR/Admins. Moreover, users can input the effective period, increment amount, and remarks easily. Additionally, a new "Current Rates" column shows updated wage rates. This guide will walk you through the how salary increment works, steps to set up, apply, review salary increments using the AutoCount HRMS system.
Understanding Salary Increments
Salary increments are regular increases in an employee’s pay, usually based on their performance, how long they’ve worked at the company, or company policies. Consequently, AutoCount HRMS has tools to manage these increases, making sure salary changes are fair and accurate.
Applying Salary Increments Individually
1. Navigate to Employee Maintenance
- Go to “Payroll”.
- Select “Employee Maintenance”.
2. Edit Employee Details
- Select an employee and click “Edit”.
- Go to the “Employment Detail” tab.
- Then, open the “Wages Info” section.
3. Enter Increment Details
- Basic Rate
- Current Rate: Basic Rate + Increment Amount = Current Rate
- This column will display the updated wages rate, you may not edit this column.
- Add New: Add new record for the increment.
- Please ensure to save after entering increment amount.
- Effective Period: Select the effective payroll period for the increment.
- Not allowed to select Months that has processed / done payroll closing.
- Increment Amount: Amount for increment, negative value is allowed.
- Remark column
- Archived Record: Previously known as Employment History.
- The data in employment history will be moved to archived record for viewing purposes.
Applying Salary Increments in Batch Edit
1. Access Batch Edit
- Navigate to “Payroll”
- Select “Employee Maintenance”
- Then, choose “Batch Edit” and select “Increment”
2. Batch Edit Process
- Select Field: Select item “Increment” for batch edit.
- Batch Action: Use this to update multiple employees with similar figures.
- Select Employee: Single or multi-select
- Employee: Default view shows employees code and name.
-
- Can be changed viacolumn chooser. (Right click > Column Chooser)
- Basic Rate
- Current Rate: The current wages rate (Basic Rate + Previous Increment)
- Increment Amount: Amount for increment, negative value allowed.
- Effective Period: Select the effective payroll period for the increment.
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- Not allowed to select Months that has processed / done payroll closing.
- Remark column
- New Rate: Amount after increment.
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- Current Rate + Increment amount = New Rate.
- Save: Save the changes for the increment updates.
3. Set Increment Parameters
- Batch Action: Batch update for multiple employees by amount or percentage.
- Effective Period: Select the effective payroll period for the increment.
- Amount: For increment defined with an amount. e.g. RM100.00.
- Percentage: For increment defined with a percentage. e.g. 15.50%
- Increment Amount: Increment amount, up to 2 decimal places.
- Remark column
- Apply: Apply changes to the selected employees.
- Save: Save the changes for the increment updates.
Scenarios: Applying Salary Increments in Batch Edit
Uniform Increment
To apply the same increment to all selected employees:
20 Employees
Entitled > RM200 or 12.5% Increment
This can be done by using the Batch Action button, therefore requiring you to key in increment information only once.
- Check the affected employees name then Click Batch Action
- Select the Effective Period for this increment
- Select Amount if it’s a fixed RM 200 increment
- Select Percentage if it’s a 12.5% increment
- Then, enter the amount. For example, RM200 or 12.5 %
- Remark for reference purposes
- To Apply the changes
- Lastly, click Save to save the increment updates
Variable Increment
Apply different increments based on individual performance:
20 Employees
Entitled > Different Increment
- Use the filter option to find the affected employees
- Key in the Increment Amount for the affected employees
- Select the Effective Period for the increment
- Enter a Remark for reference purposes
- After that, system will calculate and display the updated rates in the “New Rate” field
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After updating the increment details, the system will take the Current Rate for processing the payroll.
Reviewing Salary Increments
Generate Reports
Moreover, with this new feature, there will be a new report – Increment Report.
- Go to “Reports”
- Open the “Employee Reports” section
- Then, click on “Increment Report”
Conclusion
AutoCount HRMS offers a user-friendly way to manage salary increments, ensuring accurate and fair payroll adjustments. By following the above steps, HR/Admins can streamline the salary review process, whether for a single employee or an entire batch.
FAQs
Salary increments can be applied as often as necessary. Moreover, this depends on your company’s policies and the defined increment schedules within AutoCount HRMS
Can, but ensure that the rules do not conflict with each other.
Yes, AutoCount HRMS allows for the automation of salary increments based on predefined rules and schedules. Therefore, you can set up the increment parameters and the system will apply them automatically at the specified intervals.
When setting up or applying increments, ensure that you select the correct “Effective Period.” Moreover, note that you cannot select payroll periods that have already been processed or closed.
Yes, negative increments are allowed in AutoCount HRMS. They will reduce the employee’s salary accordingly and will be reflected in the “Current Rate” after the decrement
Absolutely, you can preview the changes by reviewing the details in the “Salary Increment Application” or “Batch Edit” section before applying the increments. Because this helps ensure accuracy and avoid errors.