Shift Allowance — Setup & Configuration

Shift Allowance — Setup & Configuration

Global Payroll  ·  Configuration Guide

Shift Allowance

Configure additional pay for employees working outside standard hours — night shifts, weekend rotations, or custom schedules. Set it up once; WorkWisely applies it automatically on every pay run.

▶ Create Shift Types ▶ Fixed Amounts ▶ Assign to Employees ▶ Edit & Deactivate

What Is Shift Allowance?

Shift Allowance is an additional pay component given to employees who work outside standard business hours — such as early morning, late night, weekend, or rotating shifts. It compensates them for the inconvenience of non-standard working hours and is typically configured as either a fixed amount per shift or a percentage of basic salary.

In WorkWisely, Shift Allowance is managed under Payroll → Shift Allowance. Once configured, it is automatically factored into each pay run for qualifying employees.

ℹ Before You Begin
Make sure employee profiles are already created in WorkWisely before assigning shift allowances. Shift Allowance configuration requires Admin or Payroll Manager access.

Step 1 — Navigate to Shift Allowance

  1. Log in to your WorkWisely account.
  2. From the left navigation menu, click Payroll.
  3. Under the Payroll section, select Shift Allowance.
  4. The Shift Allowance list page opens, showing all existing shift configurations.

Step 2 — Create a New Shift Allowance

Click + Add Shift Allowance (or + New) to open the creation form. Fill in the following fields:

Field Description Required?
Shift Name A descriptive label for this shift type (e.g., "Night Shift", "Weekend Shift", "Rotating Shift A") Yes
Allowance Type Fixed Amount — a flat currency value per pay cycle; or Percentage — a percentage of the employee's basic salary Yes
Amount / Percentage The value of the allowance — enter the flat amount (e.g., 2000) or the percentage (e.g., 10) Yes
Shift Timing The start and end times for this shift (e.g., 22:00 – 06:00 for a night shift) Optional
Applicable Days Select the days of the week this shift applies to (e.g., Monday–Friday, or Saturday–Sunday only) Optional
Description An internal note to clarify the purpose or eligibility criteria for this shift allowance Optional
✅ Fixed Amount
Allowance = Fixed Value per Pay Cycle
A flat currency amount added to the employee's pay each cycle, regardless of their salary level. Example: ₹2,000 per month for all night-shift workers.

Step 3 — Save the Shift Allowance

  1. Review all the details entered in the form.
  2. Click Save to create the shift allowance configuration.
  3. The new shift will appear in the Shift Allowance list and is now ready to be assigned to employees.
💡 Tip
Use clear, recognisable shift names — your payroll team will see these names in pay run reports. Names like "NS-Fixed" or "WE-10%" may be harder to audit later than "Night Shift (Fixed ₹2,000)" or "Weekend Shift (10% Basic)".

Step 4 — Assign Shift Allowance to Employees

Creating a shift allowance does not automatically apply it to employees. You need to explicitly assign it to each qualifying employee.

  1. Go to Employees and open the employee's profile.
  2. Navigate to the Payroll or Compensation tab within the profile.
  3. Under Allowances, click Add Allowance and select the shift allowance you created.
  4. Set the Effective Date — the month from which this allowance will be included in payroll.
  5. Click Save.

Alternatively, if you need to assign the same shift allowance to multiple employees at once, use Bulk Update from the Shift Allowance list page.

How Shift Allowance Appears in Payroll

Once assigned, the shift allowance is automatically included in the employee's salary calculation during each pay run. It will appear as a separate line item in:

  • Pay Slip — listed under Earnings as "Shift Allowance" (or the name you configured)
  • Payroll Summary Report — broken out per employee and shift type
  • CTC Breakdown — included as part of the employee's total cost to company
ℹ Tax Treatment
Shift Allowance is generally fully taxable as part of salary income and is included in the employee's gross taxable earnings. Confirm with your tax/finance team if any specific exemptions apply under local regulations for your employees' jurisdictions.

Editing or Deactivating a Shift Allowance

To Edit

  1. Go to Payroll → Shift Allowance and click the shift you want to modify.
  2. Update the relevant fields and click Save.
  3. Changes take effect in the next pay run. Previously processed payrolls are unaffected.

To Deactivate

  1. Open the shift allowance and toggle its status to Inactive.
  2. The allowance will no longer be applied in future pay runs.
  3. Any employees currently assigned to this allowance should be reviewed — their assignment will also become inactive.
⚠ Important
Editing a shift allowance amount mid-year may affect salary revision records and TDS calculations. Always coordinate with your payroll manager before making changes during an active financial year.

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