You can schedule yearly salary increases for employees and contractors on either an employee’s hiring date (or contractor’s start date) or at the start of your budget’s fiscal year.
When you add information on salary increases, you add a percentage increase to the Yearly increase field. Depending on what option you select in the Yearly increase on field, the increase is displayed in your budget plan either at the start of the following fiscal year or on the anniversary of the employee’s hiring date.
See Getting started with employees or How to add contractors (professional services) for more information.
📝 Currently, scheduling yearly increases on an employee’s hiring date isn't applicable on the New hires and New hires from model budget line types.
Schedule the salary increase
To schedule a yearly salary increase from the Inputs > Main view:
In the Yearly Increase field of an employee or contractor budget line type, enter either a percentage number or a formula to use to calculate the percentage amount to add to the current salary.
In the Yearly Increase On field, select whether to implement the increase at the start of the fiscal year, or on the employee's hiring date or contractor’s start date.
At the group level, the default is Fiscal year start. Select Auto to have the parent value automatically inherited.
NOTE: You can view and change the fiscal year start date from your budget settings. Click the Settings icon from the Inputs or Actuals view and select the General tab.
Salary increase calculation
If you schedule a yearly increase on the hire date, the full percentage amount is automatically applied.
However, if you schedule a yearly increase at the start of the fiscal year, the percentage amount to increase is adjusted proportionally to when the employee began working within the past year. Whereas, contractors always receive the full rate increase.
For example, if the salary increase is 10% at the beginning of the fiscal year:
New employees that only worked six months before the start of the next fiscal year get an increase of 5%.
Employees who have worked at least a full year by the start of the next fiscal year get an increase of 10%.
All contractors get an increase of 10% regardless of when they began working.