Salary Increase is an increase in the Basic Pay that is being received by an Employee for the work being rendered for the company. This is awarded to an employee for various reasons - either due to good performance and track records, promotion, and many more!
An increase is definitely a positive event as it gives a bigger take-home pay to support the employee's living expenses.
But how can this be implemented in the Sprout HR and Payroll System? Continue reading this article to learn more!
Example: Employee A
Current Basic Salary: 20,000
New Basic Salary: 25,000 (Effective January 21, 2021)
Payroll Cut-off: January 16-31, 2021
Current Date: January 20, 2021
If the new basic salary will apply on a future-dated date, what you can do is to update it on the exact date of effectivity. For example, the date today is January 20, if the new basic salary will take effect on January 21, then you need to update the basic salary of the employee on January 21 as well.
You may update it by visiting the Current Payroll Information Tab of the Employee Profile and locate the Basic Salary Field under Compensation and Benefits (Salary).
Don't forget to click SAVE! 
Note: If the salary increase applies for multiple employees, you may update their basic salaries via the Bulk Upload (Employee Information) Module of Sprout HR instead. Here's how: How to Edit Employees in Bulk
The Salary Date From Column must be updated as well:
You may read the following articles to know more: Bulk Add/Edit Employee Information Template: Salary Date From / Salary Date From Column in Bulk Edit Template
Remember, this process applies to Synced Accounts only. Once the changes have been made in Sprout HR, the new Basic Salary will reflect in Payroll as well.
Now, if the effectivity date of the new salary has already passed, here's what should be done:
Example: Employee B
Current Basic Salary: 20,000
New Basic Salary: 25,000 (Effective January 18, 2021)
Payroll Cut-Off: January 16-31, 2021
Current Date: January 20, 2021
Note: This process is not advisable as the effectivity date of the new salary must be indicated in the employee profile on the correct date and not on a past-date.
The steps below will override the current salary record of the employee in the system, and will not add a new record on top of the current salary.
Example:
| Salary Records before the Upload | Salary Records after the Upload | ||
| Amount | Effectivity Date | Amount | Effectivity Date |
| 20,000 | January 1, 2020 | 25,000 | January 18, 2021 |
| 15,000 | June 1, 2019 | 15,000 | June 1, 2019 |
| 10,000 | January 1, 2019 | 10,000 | January 1, 2019 |
*If you will notice in the Salary Records after Upload Column, the system will replace the January 1, 2020 record in the system*
Still, it is still advisable that the new salary of the employee will be updated on the profile via the Current Payroll Information Tab.
Lastly, please note that for Employee A and Employee B, their new salaries will take effect at the start of the payroll cut-off. In this case, Employee A and B's new rate will take effect starting January 16 regardless of the January 21 and 18 effectivity date. Since the basis of the salary of Employee A for January 16-20 and Employee B for January 16-17 is the old rate, the difference must be adjusted manually in Sprout Payroll.
Related Articles:
Sprout Payroll: How to Reconcile Overpayment from Salary Increase
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