Pay a Title Allowance by Grade

A title allowance is not the same amount for everyone: it follows the employee's grade. This tutorial sets up the grades, gives employees their grades, prices the allowance per grade, and shows with real figures what each payday pays, including what happens when someone changes grade in the middle of a cutoff.

Before You Start

Permissions. The Job Grades screen and the employee's Job Grade section need the permission to update employee records. The rate table needs the permission to update allowance configuration.
The grade table from your policy: each grade and the monthly title allowance it earns.
Who holds which grade, and from what date, ready as a spreadsheet if there are many employees.

Info

The example uses three grades and a semi-monthly payroll (two paydays a month). The allowance is Title allowance (non-taxable): ₱2,898.00 a month for Grade 1, ₱2,650.00 for Grade 2 and ₱1,900.00 for Grade 3. A second allowance, Title allowance (taxable), pays ₱352.00 a month to Grade 1 only. The cutoff is 1 to 14 October 2026.

What the Setup Produces

Once grades, employee grades and rates are in place, each payday reads the employee's grade, looks up that grade's monthly rate and divides it across the cutoffs of the month. For a Grade 1 employee on a semi-monthly payroll:

A Grade 1 employee, one payday

Title allowance (non-taxable), monthly rate of Grade 1		₱2,898.00
Paydays in the month (semi-monthly)	÷	2
Title allowance (non-taxable) this payday	=	₱1,449.00
Title allowance (taxable), monthly rate of Grade 1		₱352.00
Paydays in the month (semi-monthly)	÷	2
Title allowance (taxable) this payday	=	₱176.00

The employee receives ₱1,449.00 + ₱176.00 = ₱1,625.00 of title allowance on each payday. The non-taxable part is not taxed; the taxable part is added to taxable pay.

Every step, and what it does to the pay

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Go to Manpower → HR Setup → Job Grades and click New Job Grade for each pay level. See Job Grades for the full screen. A job grade is a pay level, separate from the role.

Code*

Letters, digits, dot, dash or underscore. Cannot change after the first save. Example: ENG-G1.

Name*

What people read. Example: Engineer grade 1 (Senior TL).

Level Order0 to 99

Sorts job grades in lists; 1 comes first.

RolesOptional

The roles that normally use the job grade. The list groups job grades by linked role; the link never limits who can hold it and never changes the pay.

Active

An inactive job grade cannot be given to employees.

What you have after this step

Grade 1		Level Order 1, active
Grade 2		Level Order 2, active
Grade 3		Level Order 3, active

No money moves yet: a grade with no allowance rate pays nothing.

One employee: open Employee Records → the employee → Employment tab → Job Grade and click Change Job Grade. Many employees: use Import Job Grades on the Job Grades screen.

Job Grade*

Pick an active job grade.

Effective From*

The first day the job grade applies. Blank on the import means today.

Effective To

Leave blank while the job grade still applies.

Remarks

Why: promotion, correction, a reference number.

Employee Code / Job Grade Code / Effective From (import columns)

One row per employee. The preview marks each row New job grade, Job grade change, No change or Error before anything is saved.

Changing a grade from a date

Entry before	You enter	Result
Grade 2 from 1 Jan 2026, open	Change Job Grade to Grade 1 from 10 Oct 2026	Grade 2 now ends 9 Oct 2026; Grade 1 starts 10 Oct 2026
Grade 1 from 10 Oct 2026, open	Change Job Grade to Grade 3 from 1 Oct 2026	Refused: it is dated before a later entry. Edit the history instead

An employee holds one grade at a time. The current grade ends the day before the new one starts, and entries never overlap.

Open Manpower → Payroll Setup → Allowance, open the allowance type (Title allowance) and find the Amount card. See Allowance.

Amount comes fromEach employee's plan · The employee's job grade

Each employee's plan (the default) uses the amount typed on every employee's plan. The employee's job grade uses the grade's monthly rate and ignores plan amounts. A confirmation asks before it changes.

Give every graded employee this allowance

When on, every employee whose grade has a rate gets a plan automatically, so you do not assign the allowance one by one.

Sync Employees

Adds the missing plans now and tells you how many were added.

The same employee, two ways of setting the amount

Amount comes from	Plan amount typed	Grade 1 rate	Paid this payday
Each employee's plan	₱1,000.00 a month	not used	₱500.00
The employee's grade	ignored	₱2,898.00 a month	₱1,449.00

Plan amounts are ignored for a grade-based allowance. A one-cutoff override on a plan still applies.

On the same card click Set Job Grade Rates. Fill only the grades that change.

Effective From*

The rates apply to cutoffs ending on or after this date. A new year's table is a new date; the old rows stay.

Monthly Rate (per grade)0 or more

The monthly amount for the grade. It is divided across the cutoffs like a plan amount: semi-monthly pays half on each payday. Enter 0 to stop paying a grade. A grade with no rate pays nothing.

Title allowance (non-taxable), one semi-monthly payday

Grade	Monthly rate	Paid this payday
Grade 1	₱2,898.00	₱1,449.00
Grade 2	₱2,650.00	₱1,325.00
Grade 3	₱1,900.00	₱950.00
A grade with no rate, or no grade at all	none	₱0.00 (no line on the payslip)

Title allowance (taxable), priced for Grade 1 only

Grade	Monthly rate	Paid this payday
Grade 1	₱352.00	₱176.00
Grade 2	none	₱0.00
Grade 3	none	₱0.00

Tip

For a new year, add a new Effective From date with the new table. Cutoffs that ended before the date are recomputed exactly as before.

A new table from 1 January 2027 (Grade 1 monthly rate)

Cutoff ends	Rate used	Paid this payday
14 Oct 2026	₱2,898.00 (table from 1 Jan 2026)	₱1,449.00
14 Jan 2027	₱3,000.00 (table from 1 Jan 2027)	₱1,500.00

Payroll uses the grade the employee holds on the cutoff end date. A change dated inside a cutoff therefore applies to the whole of that cutoff, and a change dated after the cutoff end waits for the next one.

Cutoff 1 to 14 October 2026, Title allowance (non-taxable)

Grade history	Grade on 14 Oct	Paid for the cutoff
Grade 1 all through	Grade 1	₱1,449.00
Grade 2 until 9 Oct, Grade 1 from 10 Oct	Grade 1	₱1,449.00 for the whole cutoff
Grade 1 until 9 Oct, Grade 2 from 10 Oct	Grade 2	₱1,325.00 for the whole cutoff
Grade 2 until 14 Oct, Grade 1 from 15 Oct	Grade 2	₱1,325.00 (Grade 1 starts next cutoff)

The rate is looked up once, on the end date; the cutoff is never split into a part before and a part after the change.

Warning

Editing or removing a grade entry recomputes payroll for the cutoffs it touches. Do it before payroll is posted where you can.

What the Job Produces

Employees on the 1 to 14 October 2026 payday

Grade 1 employee: non-taxable ₱1,449.00 + taxable ₱176.00		₱1,625.00
Grade 2 employee: non-taxable ₱1,325.00 + taxable ₱0.00		₱1,325.00
Grade 3 employee: non-taxable ₱950.00 + taxable ₱0.00		₱950.00

Each amount appears as its own allowance line on the employee's payslip and in the Allowance Pay column of Payroll Summary.

The allowance flows into Payroll Summary and the Payslip Center; the taxable part is also counted in year-end Annualization. Managers and supervisors whose title allowance is a fringe benefit use the same screen with the category Fringe Benefit; see Set Up Fringe Benefit Tax.

Pay a Title Allowance by Grade#

Before You Start#

What the Setup Produces#

What the Job Produces#

Pay a Title Allowance by Grade

Before You Start

What the Setup Produces

What the Job Produces