Introduction to Multiple Pay Rates in Keka

In today’s dynamic workplaces, employees often wear multiple hats—working in different roles, locations, or shifts within the same pay period. The Multiple Pay Rates feature in Keka allows organizations to compensate such employees fairly and accurately, based on the specific duties they perform and the number of hours or units delivered under each role.

What Are Multiple Pay Rates?

Multiple Pay Rates refer to the ability to assign different pay rates to a single employee based on the different roles, tasks, shifts, or locations they work during a pay period.

Instead of paying an employee a fixed hourly or piece rate across all duties, employers can now define role-specific or location-specific rates that reflect the nature of the work performed. This allows payroll to be calculated more accurately and fairly—especially in industries where job responsibilities change frequently.

Key Characteristics:

• Applicable only to hourly and piece-based employees (not salaried).

• Each rate is linked to a specific job code, with an optional location and pay rate.

• Payroll is automatically calculated based on the hours worked or pieces completed under each role.

Example:

Imagine a restaurant employee who works:

• 20 hours as a Server at $12/hour

• 15 hours as a Bartender at $15/hour

Why Use Multiple Pay Rates?

Not all work is equal and neither is the pay associated with it. Employees might perform different responsibilities across a single pay period, and those duties may warrant different compensation rates.

Here are common reasons why employers use multiple pay rates:

• Role-Based Pay Differences: An employee works as a server during the day and as a bartender in the evening—each role has its own hourly rate.

• Location-Based Variations: Employees working at different branches may have separate pay rates depending on city-based wage norms.

• Shift-Based Incentives: Higher rates for working night shifts, weekends, or holidays.

• Project-Based Pay: In IT services and consulting, pay may differ for each project or client.

• Task-Based Pay: In manufacturing or construction, different tools or tasks may attract varied compensation.

The Multiple Pay Rates feature in Keka brings flexibility, compliance, and precision to your payroll process ensuring employees are compensated fairly based on what they do, where they do it, and how long they do it. It’s a must-have capability for modern, dynamic businesses across industries.

For more details, visit help.keka.com.