Set pay rates and give raises

Enter an hourly or salary rate for each employee, record a raise from the day it starts, and keep every past rate in their history.

Open the employee, click Edit, and type the new rate under Pay rate. Pick the day it starts if that was before today. The old rate stays in their history, and every day is paid at the rate in force on that day.

Set or change a rate

In the sidebar, click Employees and open the person.
Click Edit.
In the Pay rate section, enter the Rate and choose the Type: Hourly, or Salary for a yearly amount.
For an existing employee, set New rate starts on. Leave it empty for today, or choose an earlier date if the raise started before today.
Save the form.

See every rate they have had

Open the person and click the Pay tab. Pay rate changes lists each rate with its type and the date it took effect, and marks the current one. Below it, Pay by pay period shows what each period came to. See pay history.

How a raise is paid

From the day it starts. A raise starting on the 20th is paid from the 20th. The days before it are paid at the old rate, in the same pay period.
Overtime is paid at one and a half times the rate in force on the day it was worked.
The Payroll report shows both rates for that period, for example $20.00/hr → $22.00/hr.
The Paychex Flex file has a row for each rate.
Provider files that carry hours only (Gusto, ADP and the rest) stay one row per person, because your provider applies its own rate.
The schedule's projected payroll uses the rate in force on the last day of the week on screen.

Rules for dates

A new rate can start today or earlier, never in the future.
It cannot start before a different rate already on record, or the history would show a raise and then a cut nobody entered. The same rate may be moved earlier, which is how a late correction is made.
Saving the form without touching the rate adds nothing to the history.
Hours worked before a person's first rate was entered are priced at that first rate.

Good to know

Changing a rate adds a new entry. It never overwrites the old one, so past periods keep what they cost.
Only people allowed to see pay can see rates, and only people allowed to edit pay see the Pay rate section.
For salaries, see salaried employees.

Questions people ask

I gave a raise last week but forgot to enter it. Can I backdate it?

Yes. Set New rate starts on to the day the raise began. Every day from then on is paid at the new rate.

Can I enter a raise that starts next month?

Not yet. A new rate can start today or earlier. Enter it on the day it begins.

Will a raise change what last month cost on reports?

No. Each day is priced at the rate in force on that day, so earlier periods keep their old cost.

Where is the pay rate field?

Open the employee, click Edit, and look for the Pay rate section. If you cannot see it, your role is not allowed to edit pay.

Related guides

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Updated 2026-10-07