> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dishink.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Wage Structures

> Set hourly, daily, monthly, or commission pay rates per staff, with overtime thresholds and effective-from dates.

A wage structure tells DishInk how to calculate gross pay for a staff member. Every person on the payroll needs one — without it, payroll generates a zero-gross record.

## Wage types

<CardGroup cols={2}>
  <Card title="Hourly" icon="clock">
    Pay a base rate per hour worked. Hours come from Clock In/Out. Supports overtime.
  </Card>

  <Card title="Daily" icon="calendar-day">
    Pay a fixed amount per day worked, regardless of hours. Common for casual staff.
  </Card>

  <Card title="Monthly" icon="calendar">
    Pay a fixed monthly salary. Optionally prorated by working days.
  </Card>

  <Card title="Commission" icon="percent">
    Pay a percentage of sales attributed to the staff (typically waiters). Combine with a base rate if needed.
  </Card>
</CardGroup>

## Fields in a wage structure

| Field                    | Applies to                         | Description                                                                                           |
| ------------------------ | ---------------------------------- | ----------------------------------------------------------------------------------------------------- |
| Wage Type                | All                                | Hourly, Daily, Monthly, or Commission.                                                                |
| Base Rate                | Hourly, Daily, Monthly, Commission | The base amount in ZMW (hourly rate, daily rate, monthly salary, or fixed base on top of commission). |
| Overtime Rate            | Hourly                             | ZMW per OT hour. Usually 1.5× or 2× the base rate.                                                    |
| Overtime Threshold (hrs) | Hourly                             | Hours per day before OT kicks in. Default **8**.                                                      |
| Commission %             | Commission                         | Percentage of attributed sales.                                                                       |
| Effective From           | All                                | The date this wage becomes active. Older records use the previous structure.                          |

<Frame caption="Wage modal with type, base rate, overtime, and effective-from fields.">
  <img src="https://mintlify.s3.us-west-1.amazonaws.com/dishink/images/staff/payroll-wage-modal.png" alt="Wage modal" />
</Frame>

## Assigning a wage

<Steps>
  <Step title="Open the Wages tab">
    Go to **Staff → Payroll → Wages**. Every active staff member is listed with their current wage summary.
  </Step>

  <Step title="Click Set Wage or Edit Wage">
    Opens the wage modal.
  </Step>

  <Step title="Choose the wage type">
    Hourly, Daily, Monthly, or Commission. The form adjusts to show only relevant fields.
  </Step>

  <Step title="Enter base rate and overtime">
    For hourly wages, set the OT rate and threshold. Defaults: threshold 8 hrs, multiplier 1.5×.
  </Step>

  <Step title="Set Effective From">
    Choose today for immediate effect, or a future date to schedule the change.
  </Step>

  <Step title="Save">
    The wage is versioned. Older payroll records continue to reference the prior wage.
  </Step>
</Steps>

## How overtime is calculated (Hourly)

For each day in the pay period:

1. Sum the hours worked (from clock-in/clock-out pairs).
2. If daily hours exceed the **OT threshold** (default 8), the excess is paid at the **OT rate**.
3. Non-OT hours are paid at the **base rate**.

<Note>
  The OT threshold and multiplier defaults live in [Payroll Settings](/staff/payroll/settings) but can be overridden on the wage record itself.
</Note>

## How monthly proration works

When **Prorate monthly wages by days** is enabled in [Payroll Settings](/staff/payroll/settings):

* Daily rate = `monthly_salary / working_days_per_month` (default **26**).
* Gross for the period = daily rate × days worked in the period.

With proration off, monthly staff receive their full salary regardless of the days in the period.

## Commission staff

* Sales attributed to the staff (via the waiter assigned to each order) are summed for the period.
* Commission = `attributed_sales × commission_percent`.
* If a base rate is set, it is added on top. Useful for a small guaranteed retainer plus performance pay.

## Tips and best practices

* Set **Effective From** in the future when a raise takes effect at the start of a new pay period. It keeps history clean.
* Use hourly wages for shift staff (waiters, cashiers, kitchen) so overtime is tracked automatically.
* Reserve commission structures for staff who directly drive sales.
* Keep OT threshold at **8 hrs/day** to match Zambian labour norms; adjust only when your operating agreement differs.

## Common mistakes

* **No wage assigned.** Payroll generates a zero-gross record. Always assign a wage before the first pay run.
* **Backdated Effective From.** Rewriting history can break existing paid records. Prefer future-dating.
* **Forgetting the OT rate.** With only a base rate set, all hours are paid at base — no overtime premium.
* **Commission % over 100.** Always a validation error. Commission is a percentage of sales, not a multiplier.

## Related pages

* [Payroll Settings](/staff/payroll/settings)
* [Generating Payroll](/staff/payroll/generating)
* [Clock In](/staff/clock-in)
* [Clock Out](/staff/clock-out)
* [Payroll Overview](/staff/payroll/overview)