Change an employee’s salary and wage details

Update salary and wage details for an employee. If the employee already features in a draft or posted pay run, you can update their payslip with the new details.

You need Payroll Admin access to change an employee’s salary and wage details.

Update your employee’s salary and wage details

  1. In the Payroll menu, select Employees.
  2. Click the employee's name to open their details.
  3. Click the Pay Template tab.
  4. Under Earnings Rate, update the earnings line with the employee’s new pay details.
  5. Click Save.

Xero will use the employee's updated salary and wage information when you create a new pay run. Alternatively, you can apply the updates midway through a pay run by following the steps below.

Apply updated salary and wages to a draft pay run

After updating your employee’s salary and wage details, apply the changes to a draft pay run. You can apply the changes to all or some of the employee's hours.

  1. In the Payroll menu, select Pay Runs.
  2. Click the draft pay run to open it.
  3. Click the employee's name to open their payslip.
  4. Click Reset Payslip to bring through the new salary and wage details.
  5. To apply different pay rates to different parts of the pay run, add a second earnings line:
    • Click Add Earnings Line.
    • Select the Earnings Rate (eg Ordinary Hours).
    • Click OK.
  6. Adjust the earnings lines to apply the different rates. In the example below, we're paying an employee for 10 hours of work. We've applied the employee's old rate of $12/hr to the first four hours, but their new rate of $15/hr to the next six hours.

    Image of two different pay rates in the same pay run.

  7. Click Save.