UK Payroll Allowances

Payroll Administrator Guide

Version
R2025.2.1
ft:lastEdition
2025-12-01
UK Payroll Allowances

You can create UK allowance (earning) codes in Payroll Set-up > Earnings and Deductions in the Earnings tab. This includes:

  • Time-driven allowances: Allowances that are calculated based on the hours an employee works. See Time-Driven Earnings in the Dayforce Implementation Guide.
  • Generated allowances: Allowances that you assign to an employee’s payroll elections, such as a salary sacrifice arrangement, so that the application calculates an amount on a scheduled basis. You can define the payment schedule, balance, and a limit for the allowance. You can also create and assign third-party payees, such as benefit providers, who can receive the amount.
  • Payroll policy allowances: Allowances that the application calculates by running a payroll policy rule, such as for statutory parental pay.

For general information about creating allowances, see Earnings and the Earnings Tab in the Dayforce Implementation Guide.