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How to Set Up Shift Premiums and Deductions in BrioHR Time Attendance

Learn how to configure Shift Premiums and Deductions in BrioHR Time Attendance to automate payroll calculations based on attendance, lateness, and shift behavior.

Introduction

Shift Premiums and Deductions in BrioHR is a feature that automates payroll calculations based on employee's real attendance and shift behaviour.

For example:

  • Employees with no lateness or early clock-outs in a monthly timesheet may receive a Meal Allowance (premium payment).
  • Employees with lateness records may receive a Lateness Deduction.

IMPORTANT NOTE:

The shift premiums and deductions are currently available for work schedule with shifts arrangement only.


Part A: Setting Up Tag, Shift, and Work Schedule Assignment

Before configuring premiums and deductions, ensure that you have:


Part B: Payroll Custom Pay Items

Shift premiums and deductions must be linked to Custom Pay Items in Payroll. These items must be set with unit types:

  • Shift

  • Hours


Part C(i): Setting Up Shift Premiums and Deductions

Step 1 – Access Shift Premiums & Deductions

  1. Go to HR Lounge > Time Attendance

  2. Click Policy

  3. Select Shift Premiums & Deductions

Step 2 – Create Shift Premiums (Extra Pay)

Shift premiums are extra payments for meeting specific shift conditions, such as:

  • Working night shifts

  • Meal allowance eligibility

Steps to create a premium:

  1. Click +Create Premium

  2. Fill in the General Information:

    • Premium name

    • Shift tag

    • Unit type

    • Eligibility criteria

  3. Under Payroll Connection:

    • Choose a payroll item for each payroll center

    • Select the pay item created in Part B

Step 3 – Create Shift Deductions (Penalties)

Shift deductions apply when employees fail to meet expectations, such as:

  • Lateness

  • Early clock-out

Steps to create a deduction:

  1. Click +Create Deduction

  2. Fill in the General Information:

    • Deduction name

    • Shift tag

    • Unit type

    • Eligibility criteria

  3. Under Payroll Connection:

    • Choose a payroll item for each payroll center

    • Select the pay item created in Part B

You can link to multiple tags in one Shift Premium and Deduction creation

The employee's shift behaviour must fit both eligibility criteria to be eligible for  premium and deduction.

For example:

Employee's shift on 1st August 2025 has both lateness and early clocked out. He is eligible for lateness deduction

 


Part C(ii): Assigning Shift Premiums and Deductions in the Policy

  1. Select the Time Attendance Policy to modify.

  2. Go to Shift Premiums & Deductions.

  3. To add premiums:

    • Click Choose/Modify

    • Select from the list of predefined Shift Premiums

    • Click Confirm Selection

  4. Repeat the same process for Shift Deductions.


How Shift Premiums and Deductions Appear in Timesheet

  • If an employee is assigned to a policy with premiums/deductions, the system auto-detects applicable payments or deductions.

  • These appear at the bottom-left corner of the monthly timesheet.

  • The timesheet captures units only (e.g., hours/shifts).

  • Actual payment/deduction amounts are applied after sending the approved timesheet to payroll.


How Shift Premiums and Deductions Appear in Payroll

Before sending timesheets to payroll, make sure:

1. The timesheet has been approved by the Manager/HR.

2. Once approved, send the timesheet to Payroll.

In Payroll, the system automatically captures:

  • Relevant premium payments.
  • Relevant deductions.

Amounts are calculated based on:

  • The unit type settings (Shift/Hours)
  • The number of shifts/hours recorded in the timesheet.


Frequently Asked Questions (FAQ)

Q1: Can I apply both a premium and a deduction for the same in a month?

A: Yes, if the employee meets both eligibility criteria (e.g, meal allowance for no lateness, but a deduction for early clock-out).

Q2: Can I link multiple payroll centers to the same premium/deduction?

A: Yes, you can assign different payroll items for each payroll center.

Q3: Will deductions apply retroactively if I update the time attendance policy?

A: No, deductions and premiums apply from the point of update onward. Past approved timesheets remain unchanged.

Q4: Where can I check the final calculated amount?

A: The final calculation is visible in Payroll after the approved timesheet is set from Time Attendance.

 

Need Assistance?

If you have any questions or require assistance, please reach out to our support team via live chat or email us at support@briohr.com.