Create and register allowances and payment for extra hours (salaried employees)

For salaried employees, you can create both fixed and variable pay allowances. Variable allowances can, among other things, be used as hourly rates for paying extra hours.

This article provides a complete guide to adding an allowance as a pay component for an employee and registering the allowance—either by you as the administrator or by the employee, depending on the setup.

Add the allowance as a pay component for a salaried employee

A fixed pay allowance and a variable pay allowance are used in two different ways. You can read about the allowance types below.

Fixed pay allowance

A fixed pay allowance is a fixed amount that is automatically paid during every payroll period.

The allowance is registered directly under Pay on the employee’s profile and will not appear under the Payroll supplements tab. The employee cannot register or change this allowance themselves—it is managed exclusively by the person responsible for payroll.

The allowance is configured with:

Amount per unit, specified in DKK
Number of units to be paid per payroll period

You can also choose how the allowance should be treated in relation to holiday pay and pension:

Excluding holiday pay
Excluding holiday pay and pension
Excluding pension

If you need a specific allowance, you can create a custom pay allowance. Follow the relevant guide linked in the original article to define which pay components should be included in it.

Variable pay allowance

A variable pay allowance is a rate and amount paid during each payroll period. The allowance is registered under the Payroll supplements tab. The employee can register or change this allowance themselves.

The allowance is configured with:

Amount per unit, specified in DKK

If you need to exclude the pension basis, holiday-pay basis, or—where applicable—public-holiday/free-choice allowance (SH/Fritvalg), you can create a custom pay allowance. Follow the relevant guide to define which pay components should be included.

💡 TIP: You can create custom allowances and choose the exact text shown on the payslip.

You can also decide whether the allowance should be included in other pay components, such as pension, holiday pay, or public-holiday/free-choice allowance.

💡 TIP: Are you familiar with the time-off-in-lieu and flexitime feature?

If you want salaried employees to accumulate hours in a time bank, with the option of having them paid later at a specified rate.

Add a pay allowance as an employee pay component

I Want to add a fixed monthly pay allowance

If you want to register an allowance that is paid regularly, select an allowance of the Fixed Pay Allowance type.

The allowance is registered directly under Pay on the employee’s profile and will not appear under the Payroll Entries tab. The employee cannot register or change this allowance themselves—it is managed exclusively by the person responsible for payroll.

Instructions

Go to the Employees tab, find the relevant employee, and click Edit in the Pay column.
Click Add remuneration line.
Select how the allowance should be treated—for example, as ordinary pay, excluding holiday pay, excluding holiday pay and pension, or excluding pension.
Enter the amount and specify how many allowance units should be paid.

💡 TIP: Customize the allowance text shown on the payslip

If you want an allowance to appear with specific wording on the payslip, you have two options:

Click the pencil icon next to the allowance and enter the desired text directly.
Alternatively, edit the text by going to Company → Payroll settings → Modify wage types, then update the text in the drop-down menu.

See the guide linked in the original article for more information.

Click Save changes. Going forward, the allowance can be edited directly under Pay for the employee.

I want to add an allowance based on hours or other variables

If you want to give an employee an allowance based on hours or other variables, use the Variable Pay Allowance type.

You specify a rate and an amount to be paid during each payroll period. The allowance is registered under the Payroll supplements tab. The employee can register or change the allowance themselves—for example, if you want them to register extra hours that should be paid.

Instructions

Go to the Employees tab, find the relevant employee, and click Edit in the Pay column.
Click Add remuneration line.
Select one of the variable pay allowances.
Enter the amount per allowance unit.

💡 TIP: Customize the allowance text shown on the payslip

If you want an allowance to appear with specific wording on the payslip, you have two options:

Click the pencil icon next to the allowance and enter the desired text directly.
Alternatively, edit the text by going to Company → Payroll settings → Modify wage types, then update the text in the drop-down menu.

See the guide linked in the original article for more information.

Click Save changes. The allowance is registered under the Payroll supplements tab. The employee can register or change the allowance themselves.

Register a variable allowance for a salaried employee

In Salary, a variable allowance can be registered in two ways: Simple or Detailed.

The allowance is entered as a number of units, but it can also be used in practice to register hours—for example, with one unit corresponding to one hour.

Simple registration

Suitable when you only need to enter the total number of allowance units.

Enter the number of allowance units.
Click Save changes.

The system calculates the allowance based on the number of units.

Detailed registration

Here, allowance units are entered separately for each day.

Select the date.
Enter the number of units.
If several pay components exist, select the relevant one.
Optionally add a note.

You can then see the number of allowance units for each day, along with any notes.

💡 TIP: Should the employee register the allowance themselves?

If the allowance covers extra hours that must be paid, for example, you can let the employee register it through the employee app.

If you do not currently use the employee app, see the relevant guide linked in the original article.

Guide

I want to register or pay a Variable allowance using simple time registration

Go to the Employees tab, find the relevant employee, and open the Payroll supplements tab.
Enter the number of units to be paid to the employee and click Save changes. The allowance will now appear on the payslip.

💡 TIP: Haven’t created the allowance yet? Go to the top of the article to learn how to get started with pay allowances.

How do I register or pay a variable allowance using detailed time registration?

Go to the Employees tab, find the relevant employee, open the Payroll supplements tab, and click Register pay.
Complete the following fields:
- Date: Select the relevant date.
- Quantity: Enter the number of units. Although the allowance is entered in units, it can also be used to register hours—for example, with one unit corresponding to one hour.
- Type: If several allowances exist, select the allowance to be registered from the drop-down menu.
- Note: Optional.
Click Save changes.
The allowance will now appear in the Payroll Entries overview and on the payslip.

💡 TIP: Haven’t created the allowance yet? Go to the top of the article to learn how to get started with pay allowances.

Allow employees to register variable allowances in the employee app

If you want employees to register variable allowances themselves in the app, you must activate detailed registration under Payroll Entries.

Please note that the button for activating detailed registration is displayed only when no simple payroll entries have been registered. You must therefore delete any existing simple entries before the button becomes available.

Important: It is not currently possible to submit these entries for approval. Everything the employee registers in the app is therefore approved automatically and transferred directly to payroll.