Set up and manage shift allowance policies in Keka HRMS. Customize allowance rates, track employee benefits, and streamline payroll processing efficiently.
Shift allowances are a good tool to have when you want to provide compensation for employees working in certain shifts. For example, these could be shifts during irregular working hours or shifts during peak times. Let’s see how you can create Shift Allowance Policies on Keka.
Navigate to Time Attend (1) on the left panel of the Keka portal and then go to the Shifts/Weekly Offs & Holidays (2) section, under which you’ll find the Shift Allowance (3).
Before you can start adding shift allowances policies, you have to add Shift Allowance Codes which decide the actual amount of compensation the employee(s) working in a particular shift will get.
Go to the Shift Allowance Code (1) section under the Shift Allowance Tab and click +Add Shift Allowance Code (2) dropdown.
In the new section that opens, give a Name to the allowance code and a Description if required. You will also have to provide a Pay Code which will be used in the shift allowance policies to define the rate at which the employees will be paid.
Now you have to input the formula for calculating the allowance amount. You have the option to choose any salary component to include in the formula by selecting it from the list, after which it will be automatically inserted.
Click on Add when you are done and the allowance code will be ready to use in any allowance policy.
While putting in the formula for a component, make sure that you're using the 'Standard JavaScript' notation for formula expressions. For example, use the asterisk symbol ( * ) for multiplication and forward slash ( / ) for division. Also, all the names of the components used in the formula should be enclosed in square brackets like [CTC], and only outside this the curved bracket should be used for arithmetic operations. Another thing to keep in mind while putting in the formulas is that you should follow the order of operations, which is also known as BODMAS (Brackets, Orders, Division, Multiplication, Addition, and Subtraction).
Please note that you can create multiple shift codes depending on the organisation policies.
Now you can go ahead and create a shift allowance policy by going to the Shift Allowance Policy (1) section and then clicking on +Add Shift Allowance Policy (2).
You can either create from scratch or select from a predefined template if you have one.
Firstly, you have to provide a Name and a Description (optional) for the policy. Then you can select if you want this policy to be applied according to the clock-in timing of the employees (1), or or employees working in a particular shift (2).
In the first option, you can choose to exclude the employees with flexible shift schedules (1).
Also, you can restrict the shift allowance calculation for that particular day if the employees who do not complete the required shift hours.
Click on Save to add this Shift Allowance Policy.
You can also edit a shift allowance policy by navigating to Shift Allowance Policy (1) section and finding the policy (2) you want to change from the list. Now go to Version (3) where you will find the options to View/Edit/Delete (4) the policy.
The policies with past effective dates cannot be deleted and editing them will create a new version of the policy.
We hope this article helped you understand the Shift Allowance Policies on Keka.