System Rates
Streamline system rates linked to payte run templates
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Streamline system rates linked to payte run templates
Last updated
Was this helpful?
Please note that previously System Rates were known as Variable Units. They are referring to the same concept.
System rates allow you to manage payroll-wide pay rates for all employees. When configuring a pay run template, you can link it to a system rate instead of entering a custom rate manually.
Use Cases
Create a system rate that matches the national minimum wage (e.g., R28.79 as of 2025).
Configure a pay run template for compensating employees based on hours worked, linking it to the national minimum wage system rate instead of using a custom rate.
Using system rates helps maintain consistency across all pay run templates. This ensures:
Uniformity – All templates follow a single predefined rate.
Simplified Updates – Wage increases can be managed centrally by adjusting the system rate.
Flexibility – System rates can be overridden for specific employees when necessary.
To create a new system rate:
Navigate to Payroll > Settings, select the System Rates tab, and click Add Rate to start:
Provide a name for the new system rate (e.g., National Minimum Wage).
Provide a value for the system rate.
Provide an optional description.
Click Add New Rate.
Editing a System Rate, navigate to Payroll > Settings, select the System Rates tab:
Click the pencil icon next to a system rate in the list.
Editing a system rate will immediately affect all the pay run template and employees linked to those templates for the entirety of the pay run that they are in. If you need to schedule a future rate change, refer to the section below.
Each year, legislation mandates a national minimum wage increase, effective from March 1st. As a result, customers must adjust employee wages accordingly. Since pay periods do not always align perfectly with calendar months, they may overlap with a wage increase.
How Scheduled System Rates Work
Scheduled system rates allow you to set a future system rate change on a specific date. When the new rate takes effect, the system will:
Automatically calculate the split between Time & Attendance (T&A) hours before and after the specified date.
Perform the necessary calculations to determine the correct wage.
For a detailed breakdown of these calculations, refer to the Payroll Calculations Report, which can be attached to the payslip.
Scheduled rate changes can be configured for any date, not just national minimum wage increases on March 1st.
When scheduling system rate changes, the following linked data will not be split on the scheduled date. If the scheduled rate change falls within a pay run period, the entire period will be compensated at the new scheduled rate:
Harvesting units, Packhouse units, and Asset transfers
Activity Hours – Pay run templates linked to hours of specific activities
Fixed wages – e.g., if an employee is assigned a fixed 195 hours per month, all 195 hours will be compensated at the new scheduled rate
Leave termination payouts – If an employee is terminated within a period where a scheduled rate change occurs, the payout rate will be based on the new scheduled rate
ETI - If you schedule a rate increase for a pay run that overlaps with a new National Minimum Wage, the hours worked at the old rate will lower the average hourly rate for the entire period. This may result in employees no longer qualifying for ETI in that month.
To continue claiming ETI in the first month of the new National Minimum Wage, you must pay the entire period at the new rate.
To create a scheduled system rate change:
Navigate to Payroll > Settings, then select the System Rates tab:
Click on the schedule icon to the right of an existing system rate.
Provide the date when the new scheduled rate should be active.
T&A hours will be automatically calculated based on this date.
Provide the updated rate that must take effect on the scheduled date.
Add an optional description.
Click on Schedule to confirm the new scheduled rate change.
To view all past and active scheduled rates for a specific system rate:
Navigate to Payroll > Settings, then select the System Rates tab:
Click on the Scheduled Timeline action on the specific system rate. (This action is only available if there are scheduled rates for the system rate.)
Click on the pencil icon to edit the scheduled rate.
Click on the trash icon to delete the scheduled rate.
Once a scheduled rate has been finalised, it cannot be removed or changed.
For employees who earn more than the configured system rate, you can apply individual overrides. For example, if a supervisor earns 10% more than the default system rate, you can set a custom override for that employee to increase their rate with a specified amount.
When you override a system rate for an employee, all pay run templates linked to that rate will be affected, ensuring a quick and efficient way to manage custom rates per employee.
When overriding system rates for employees, you have two options:
Factor Override: Allows you to apply a percentage factor to the system rate. The factor is multiplied by the system rate to determine the override amount.
Example: If the factor is 1.1 and the system rate is R30, the effective rate will be R33.
Recommended: This method ensures seamless wage increases in the future. (For more details, see: Scheduled System Rates)
Value Override: Allows you to set a specific value that replaces the existing system rate.
This override takes precedence over any scheduled rate changes.
To add a system rate override for a single employee: See Employee System Rate Overrides.
To add system rate overrides in bulk: See Bulk Manage System Rate Overrides.
When scheduling a new system rate, you can also override the scheduled rate for an employee. This override is separate from the standard system rate override and applies only to the new scheduled rate.
Use Cases for Scheduled Rate Overrides:
System Rate Value Override:
Value overrides always take precedence over scheduled rates.
If an employee has an existing value override and a scheduled system rate change is set, you must add a scheduled rate override to adjust the employee’s rate accordingly.
The scheduled override will only take effect on the scheduled date.
Different Override (Factor or Value) Before and After the Scheduled Rate:
If an employee currently has a 10% increase over the system rate but should have only a 5% increase after the scheduled rate takes effect, you can create a scheduled rate override.
This new override will apply only from the scheduled date onward.
To add a system rate override for a single employee: See Employee System Rate Overrides.
To add system rate overrides in bulk: See Bulk Manage System Rate Overrides.
