Change an employee's salary, daily rate, allowances and hourly pay

An employee’s pay is managed on the Compensation tab of their profile. From there you can change their salary, attach recurring pay items such as allowances, and set up hourly pay.

Who can do this: Changing the rate and editing hourly pay are Owner and Admin only.

Change an employee’s salary

1. Open the employee’s profile and go to the Compensation tab.
2. Click Change rate.
3. Pick the Pay basis: Monthly salary or Daily rate. Hourly only shows for someone already paid by the hour.
4. Enter the New monthly rate (₱) or New daily rate (₱), Effective from and Reason (optional).
5. Click Save rate.

If closed pay periods are affected by the salary change, you’ll be told which ones to check.

To correct a mistake in an existing rate rather than record a new one, use Fix on that row of the rate history on the Compensation tab.

Pay an employee a daily rate

Choose Daily rate as the pay basis to pay someone for each day they’re present, for example staff on a shifting schedule who are sometimes sent home early. Pay = daily rate × days present. An early close still counts as a full day.

• A day counts as present if the employee punched in on a scheduled workday, or you marked them Present on Time → Attendance by day. Half day counts as half a day. A paid leave day pays one daily rate.
• A day not worked isn’t paid, so there’s no separate absence deduction. Lates, undertime and overtime follow the switches under What attendance changes pay in Settings → Payroll.
• Panatag shows the monthly equivalent (≈ ₱X/month on your workweek), which is used for reports and PhilHealth.
• Regular holiday, not worked: paid one daily rate if the employee was present or on paid leave on their last workday before the holiday. Rest days are skipped when looking back.
• Regular holiday, worked: 200% of the daily rate. Special non-working day, worked: 130%.
• Special non-working day, not worked: no pay, unless Pay unworked special non-working days (daily-rate staff) is on in Settings → Payroll.
• Unworked holiday pay isn’t counted toward the 13th month pay.
• Contributions follow each agency’s rule for daily-paid staff: SSS and Pag-IBIG on what the employee actually earned in the month, PhilHealth on the monthly equivalent.

Regional minimum wage suggestions

When your company’s region is set in Settings → Company profile (or the employee’s branch has its own region), the rate fields show the minimum for that region, for example Minimum in NCR: ₱X/day (wage order, eff. date). Click Use this to fill it in.

• Under a monthly rate, Panatag shows the daily equivalent: This rate is ≈ ₱X/day.
• A rate below the minimum shows Below the regional minimum for . It’s a warning only; you can still save.
• At or below the minimum, Panatag suggests turning on Minimum wage earner on the employee’s Employment tab. Panatag never turns it on for you.
• Without a region you’ll see Set your company’s region in Settings to see the minimum wage.
• If Panatag has no wage order for your region (for example Negros Island Region, which has no wage board yet), you’ll see No wage order on file for . Check the wage order that applies to your province.
• Some regions set different rates by area. In those regions, Panatag shows the lowest rate and says so. Check the wage order for your city or municipality.

Wage orders change about once a year per region. Check the latest wage order for your region before relying on the suggestion.

Attach allowances and recurring pay items to an employee

First create the pay item types in Settings → Pay items. Then, for one employee:

1. Go to the employee’s Compensation tab.
2. Click + Attach pay item.
3. Pick the Pay item, then enter the Amount (₱), Schedule, Effective from and an optional Effective to.
4. Click Attach item.

To stop a recurring pay item, click End on it.

Set up hourly pay for an employee

When hourly pay is on for your company, open the employee’s Compensation tab and click Edit hourly pay. Then set:

• Payee kind: Employee or Contractor (professional fees). Contractors also get an ATC code and withholding rate.
• Pay basis. Choosing Daily rate here shows the Daily rate (₱) field instead of the hourly fields. Changing the pay basis takes effect from today. Panatag keeps the old pay record for earlier days, so payslips already computed don’t change.
• Hourly rate (₱): the employee’s own rate. Leave it blank to use the rate card.
• Pay tier.
• The work types the employee logs time as, and their Default work type.
• Weekly cap (hours).

Click Save when done.