You can backdate salary changes up to the first day of the previous month and PayFit will automatically calculate the backdated payment or deduction.
For example, in your June payroll, you add a salary increase from 1 May. In June, PayFit will pay the new salary for June, as well as the underpayment related to May.
Feature Overview
✅ You can enter a salary change as far back as the first day of the previous month.
✅ This feature works for both monthly and annual salary changes.
✅ PayFit automatically recalculates the base pay that should have been paid in the previous month. This applies to salary increases or decreases.
❌ You can't enter a salary change effective prior to the previous month.
❌ You can't use it for employees that are paid weekly, daily, or hourly.
❌ You can't add more than one backdated salary change.
❌ PayFit doesn't automatically apply the Alabaster ruling for statutory maternity pay (SMP). For further information about what this means, please refer to our Help Centre article.
How to add a backdated salary change
To add a backdated salary change:
From the employee's record, click the Employment tab.
Under the Contract information section, click Salary History.
Click Add new salary.
Enter or select:
the new yearly base salary
the effective date of salary change
the reason for change
Click Save to finalise the action.
Bulk uploading backdated salary changes
If you have multiple salary changes to enter in the same month, you can upload them in bulk. To do this:
From the left choose Imports, then More imports.
In the Employment section, click Salary change.
Click Download a template, then complete the Excel file with the salary changes.
Upload the completed Excel file, then click Import data.
To check the status of the import under Imports on the left, click Log.
Click Details to check the values for each employee. If necessary, you can also click Revert import to remove the changes and start again.
FAQ's
How does it appear on the employee's payslip?
Once a backdated salary change is added, it appears on the employee's payslip as Base salary (from previous months).
How does a salary change affect pension contributions?
PayFit calculates pension on the usual base pay, including the rebalanced base pay, in the current month. If this results in a negative pension contribution, PayFit won't automatically refund the pension contributions as the pension has likely already been invested. Instead, you should speak with your pension provider to see if a pension refund is allowable. If it is, please refer to our Help Centre article on processing a pension refund.
What happens if an employee on maternity leave receives a pay rise?
If the salary is increased during the employee's maternity leave the employee's statutory maternity pay should be recalculated based on the new salary. This applies at any point between the qualifying week, to their last unpaid week of maternity leave. This recalculation usually impacts the rate for at least the first six weeks at the higher rate and can sometimes mean the employee becomes eligible for maternity pay where they weren't originally. For further information about pay rises during maternity leave and how to recalculate this, please refer to this Help Centre article.
What if I have a salary increase from more than one month ago?
Unfortunately, the earliest date you can enter is the first day of the previous month. At PayFit, we have no way to override this date for you. If you need to make an adjustment to the employee's current base pay to account for a salary increase or decrease for the earlier months, you have two options.
You can override the employee's base salary for this month. To do this;
From the left, choose Run my payroll, then Salaries & variations.
Use the search option to find the employee.
Click on the value in the Base pay column
Enter the adjusted salary value and a reason for the adjustment, then click Save.
Otherwise, you can create a Pay item, either a gross additional payment for an increase, or gross additional deduction for a decrease.