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How to Set Up Allowances on a Shift

The Allowances tab lets you tie allowance entitlements to specific shifts, so employees automatically earn allowances when they work certain shifts.

The Allowances tab on the shift template lets you tie allowance entitlements to specific shifts, so employees automatically earn allowances when they work those shifts.

Timecloud supports two methods depending on your company setup:

  • Standard Allowances — used when the Awards engine is not enabled. Allowances are defined in Settings → Payroll and configured per shift.

  • Award Allowances — used when the Awards engine is enabled. Allowances are defined inside your Awards configuration and attached to shifts as triggers.

Your company will see one or the other on the Allowances tab — never both at the same time.


Option A: Standard Allowances (Awards Engine Off)

These allowances are time-based and calculated automatically from hours worked on a shift.

Prerequisites

Before you can attach recalc allowances to a shift, they must be created in Settings → Payroll:

  1. Go to Settings → Payroll.
    Image 29-04-2026 at 10.24 AM-1

  2. Under the Allowances section, click Add Allowance.
    Image 29-04-2026 at 10.24 AM

  3. Set the Name, Code, Type (choose Automatic Shift Based Allowance for time-based), and optional company-wide defaults.

  4. Toggle Active on and save.


    Image 29-04-2026 at 10.26 AM

Steps

  1. Open a shift template and navigate to the Allowances tab.

  2. Each active time-based allowance from your payroll settings appears as an expandable panel.

  3. Expand an allowance and toggle Enabled on.

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  4. Configure the rules:

    • Minimum hours — Hours an employee must work before the allowance applies. Leave blank for no minimum.

    • Maximum hours — Cap on allowance hours earned. Leave blank for no cap.

    • Time Per Unit — Hours worked to earn 1 unit of the allowance. Leave blank for a flat 1 unit.

    • Partial Units — Toggle on to allow fractional units (e.g. 1.5).

  5. Click Save.

    Image 29-04-2026 at 10.31 AM

Example

A warehouse shift earns a "Hazard Pay" allowance of 1 unit for every 4 hours worked, with a minimum of 2 hours before it kicks in:

  • Minimum hours: 2

  • Time Per Unit: 4

  • Partial Units: On


Option B: Award Allowances (Awards Engine On)

When the Awards engine is enabled, allowances are managed through your award rules and attached to shifts as automatic triggers.

Prerequisites

Allowances must first be configured inside your award:

  1. Go to Awards from the main navigation.

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  2. Open your award and navigate to the Allowances step.

  3. Add allowances under the relevant group (Cumulative, Non-Cumulative, or Unit).

    Image 16-04-2026 at 8.36 AM

  4. Publish the award version.

For full details, see How to Manage Allowances under the Awards section.

Steps

  1. Open a shift template and navigate to the Allowances tab.

  2. You will see a table showing any allowances already attached to this shift, with columns for Allowance, Award, Employment Type, Default Amount, and Remove.

  3. Click Add Allowance.

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  1. In the Select Allowances dialogue:

    • Browse or search for the allowance you need.

    • Each row shows the Allowance name, the Award it belongs to, and the Employment Type.

    • Tick the checkbox next to each allowance you want to attach. Use the header checkbox to select all.

    • Click Save.

      Image 16-04-2026 at 8.37 AM

  2. Back on the Allowances tab:

    • For unit allowances, enter a Default Amount — this is the initial quantity applied when the shift is worked. Employees or managers can override this on the timesheet.

    • To remove an allowance, click the delete icon.

  3. Click Save on the shift template.

    Image 16-04-2026 at 8.39 AM

Example

A construction shift should automatically trigger a "Travel Allowance" (unit-based, per kilometre) and a "Site Allowance" (cumulative):

  1. Click Add Allowance on the shift's Allowances tab.

  2. Search for "Travel Allowance" — tick it.

  3. Search for "Site Allowance" — tick it.

  4. Click Save in the dialogue.

  5. Set the Default Amount for Travel Allowance to 25 (kilometres).

  6. Save the shift.


How Do I Know Which Type I'm Using?

  • If you see expandable panels with toggle switches and hour fields → you are using Recalc Allowances.

  • If you see a table with an Add Allowance button → you are using Award Allowances.

The type is determined by whether the Awards engine is enabled for your company. Contact your administrator if you are unsure.


Tips

  • Standard allowances are best for simple, time-based entitlements that depend only on hours worked.

  • Award allowances offer more flexibility — they support cumulative, non-cumulative, and unit-based rules, and can be attached to shifts, roles, job items, and individual employees.

  • Allowance triggers on a shift apply automatically to attendance records when employees work that shift.

  • You can also manage award allowances at the employee, role, and job item level for more granular control.