Shift Premiums allow you to add extra compensation for employees who work specific shifts, such as evening, weekend, or holiday hours. With MakeShift, you can easily configure these premiums to reflect your organization's policies. This support article will walk you through the steps to set up Shift Premiums, ensuring that your employees are accurately compensated for eligible shifts.
Click on the Locations tab from the top navigation bar.
Click on the location you would like to configure shift premium rules for.
Click on the Premium Rules tab.
To add a premium rule, click on the green button that says Add Premium Rule.
Next, you can enter in some of the details about your premium rule including: Rule Name, Code, Description.
Next, you can choose to create your premium rule based on Position(s) and or Employment Type(s).
Under the Time Frame section, you can choose to make your rule based on Days of the Week or Date Range.
If you choose the Days of the Week option, a drop down menu will appear, allowing you to
select the days of the week as well as the start and end time relevant to your new premium rule.
If you choose the Date Range option, you will be able to select the Start Day of Week/End Day of Week dropdown to make your day selection, and the Start Time/End Time that applies.
Once you have inputted the relevant data, employees working during the times set above will be paid a premium in addition to their regular pay. You will need to indicate one of the following two options: An additional $X per hour or X% of the employee’s hourly rate. Select one of the radio buttons.
You may also choose to add Conditions pertaining to your premium rule. In order for the employee to be paid the premium rule, certain conditions must be met. The first option allows you to state the condition that Majority of the shift falls within premium hours (calculated as >=50%). This means that if the majority of the shift falls within some or all of the time range of the premium rule, then they meet this condition and will receive the additional premium to their regular pay.
Next you can choose to input an additional condition that states, if the condition above has been met, then you can opt for your employee to earn a shift premium for Pay for all hours worked or Pay for only hours worked within the premium time range. If you opt to Pay for all hours worked, this means that the employee will earn a shift premium for the entire duration of their shift/punch time because this condition was met. If you opt to Pay for only hours worked within the premium time range, then the employee would earn a shift premium for only the hours worked within the premium time range.
You may also opt to select the Majority of the shift falls outside premium hours condition. An employee would only be eligible for this condition if the majority of the shift falls outside premium hours. This will trigger three additional options and you can select one or more of these condition options.
If the majority of hours does fall outside the premium hours, and you would additional conditions, you can set a minimum number of hours OR the shift cannot end between XX:XX and XX:XX.
The last condition option states, Shift falls within premium hours (only hours worked within the premium time frame are eligible). This means that if you work and your hours cross over into the shift premium time frame, then the employee would earn a shift premium for hours worked within the premium time frame.
It may also be important to establish the Pay Code Eligibility for specific shifts that are eligible to earn a shift premium. By checking or unchecking the box, you can indicate which shifts should earn a premium on top of the pay code earning and which shifts should not.
Once you have inputted all of the required settings for your new shift premium rule, select the Save button to save the information within your settings.
