# System Rates

{% hint style="warning" %}
Please note that previously **System Rates** were known as **Variable Units**. They are referring to the same concept.
{% endhint %}

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. This can also be seen as applying an increase from the 1st of March. Or only applying an increase from a specific date onwards.

**Use Cases**

* Create a system rate that matches the national minimum wage (e.g., R30.23 as of 2026).
* 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.

A video on how to process the schedule rate override can be viewed here:

## Creating a New System Rate

To create a new system rate:

<figure><img src="/files/nzKjND8nfN4oFKyiUZDD" alt="" width="563"><figcaption><p>Navigate to Payroll / Settings and select the System Rates Tab</p></figcaption></figure>

Navigate to **Payroll > Settings**, select the **System Rates** tab, and click **Add Rate** to start:

<figure><img src="/files/zxMdjXBpSqqNObYUpXxb" alt="" width="336"><figcaption><p>Add a new system rate</p></figcaption></figure>

1. Provide a name for the new system rate (e.g., National *Minimum Wage*).
2. Provide a value for the system rate.
3. Provide an optional description.
4. Click **Add New Rate**.

Editing a System Rate, navigate to **Payroll > Settings**, select the **System Rates** tab:

<figure><img src="/files/ipBGY0svGUseHmbFVXNq" alt="" width="563"><figcaption><p>Edit a system rate</p></figcaption></figure>

1. Click the **pencil icon** next to a system rate in the list.

{% hint style="warning" %}
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.
{% endhint %}

## Scheduled System Rates

{% embed url="<https://youtu.be/WPeF2nA6Zd4>" %}

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.

{% hint style="success" %}
Scheduled rate changes can be configured for **any date**, not just national minimum wage increases on March 1st.
{% endhint %}

#### **Limitations**

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**:

1. **Harvesting units, Packhouse units, and Asset transfers**
2. **Activity Hours** – Pay run templates linked to hours of specific activities
3. **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
4. **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**
5. **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.
   1. <mark style="background-color:orange;">To</mark> <mark style="background-color:orange;">**continue claiming ETI**</mark> <mark style="background-color:orange;">in the first month of the new</mark> <mark style="background-color:orange;">**National Minimum Wage**</mark><mark style="background-color:orange;">, you must pay the</mark> <mark style="background-color:orange;">**entire period**</mark> <mark style="background-color:orange;">at the new rate.</mark>

### **Create a New Scheduled Rate**

To create a scheduled system rate change:

Navigate to **Payroll > Settings**, then select the **System Rates** tab:

<figure><img src="/files/wXweyAnF9Zkm6YycP51G" alt="" width="563"><figcaption><p>Select the schedule option next to an existing system rate</p></figcaption></figure>

1. Click on the **schedule icon** (clock) to the right of an existing system rate.

<figure><img src="/files/IbpR65HtNZrLe6pKOqTw" alt="" width="221"><figcaption><p>Provide scheduled rate details</p></figcaption></figure>

2. Provide the **date** when the new scheduled rate should be active.
   1. T\&A hours will be automatically calculated based on this date.
3. Provide the **updated rate** that must take effect on the scheduled date.
4. Add an **optional description**.
5. Click on **Schedule** to confirm the new scheduled rate change.

### **View and Edit a Scheduled Rate**

To view all past and active scheduled rates for a specific system rate:

Navigate to **Payroll > Settings**, then select the **System Rates** tab:

<figure><img src="/files/FqyDdKJyW6HYpOF8VGwT" alt="" width="563"><figcaption><p>View scheduled rate history</p></figcaption></figure>

1. 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.)*

<figure><img src="/files/v9Bx2VGs1TdfgQwx67BD" alt="" width="332"><figcaption><p>Edit or remove scheduled rates</p></figcaption></figure>

1. Click on the **pencil icon** to edit the scheduled rate.
2. Click on the **trash icon** to delete the scheduled rate.

{% hint style="success" %}
Once a scheduled rate has been **finalised**, it cannot be removed or changed.
{% endhint %}

## **System Rate Overrides**

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.

### Scheduled 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.

## How to increase the Basic Salary

Please see below video that will show you how to increase your basic salary:<br>

{% embed url="<https://youtu.be/gGfouOK86gI>" %}

See below steps:

1. Navigate to Payroll, Pay runs.
2. Click on on the pay run you want to increase.
3. Click on the checkboxes for the employees you want to increase or select all if all the employees needs to be select.
4. Click on Import earnings.
5. Click on the drop down and select Basic salary.
6. Click on Next.
7. Here you can change the amount for the salary, or you can import a excel spreadsheet from the manage drop down.
8. Click on Recurring to add the new values.

## How to split my Fixed hours template across two rates

Please see below video:

{% embed url="<https://www.youtube.com/watch?v=OutcK1l_dnA>" %}

## How to remove the Redundant Rate Value

The redundant rate means that this persons rate has been overwritten - but the overwritten value is the same as the current national minimum wage or the current system rate resulting in a redundance.

You can just change the override to be equal to the current system rate by changing the rate to a factor of one by following the below steps:

1. Navigate to **Payroll**, **Pay runs**.
2. Go into the pay run you want to work with.
3. Click on **Pay run setup** search.
4. Click on **Redundant rate value override:**\
   \\

   <figure><img src="/files/y6K4857JeucICWEwOPy8" alt=""><figcaption></figcaption></figure>
5. This will only bring up employees with the redundant rate click on the **select all** checkbox.
6. Click on **Import Pay run templates**.
7. Click on **Import System Rate overrides.**
8. Leave the selection on **System Rate** (DO NOT CHANGE IT TO SHCEDULED RATES)
9. If you have more than one system rates, you will need to click on the drop down and select the correct one that you want to change - if you only have one pay run then this will be greyed out and you can't change it:\
   \\

   <figure><img src="/files/DK5QA9WfngBHa2EwQ1wR" alt=""><figcaption></figcaption></figure>
10. Click on Next.
11. Click on Manage.
12. Select Set Uniform amount.
13. Set the factor to 1.
14. Leave the rate block empty.
15. Click on Apply to all.
16. Click on Add.

Please refer to our video below:

{% embed url="<https://youtu.be/OcTcLNigiXQ>" %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://help.allwage.com/modules/payroll/payrun-templates/system-rates.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.