Schedule a yearly salary increase

You can schedule yearly salary increases for employees and contractors on either the hiring (or start) date or at the start of your budget’s fiscal year.

When using the New hires or New hires from model types for the Multiple Employee budget lines, you cannot schedule yearly increases on an employee’s hiring date.

To schedule a yearly salary increase:

  1. From Inputs > Main, navigate to the Yearly Increase field of an employee or contractor, and enter either a percentage or a formula to calculate the percentage to add to the current salary.

  2. In the Yearly Increase On field, select one of the following:

    • Auto - Implements the increase on the date defined in the parent value.

    • Fiscal year start - Implements the increase on the date defined in Budget Settings > General > Fiscal year starts on. Default for a budget line group.

    • Hiring date - Implements the increase on the day the employee was hired or that the contractor began working.

      Example of an yearly salary increase.

Salary increase calculation

If you schedule a Yearly Increase on the Hiring date, the full percentage amount automatically applies.

However, if you schedule a Yearly Increase for the Fiscal year start, the percentage amount to increase is adjusted proportionally to when the employee began working within the past year. 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.