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Add and manage pay rates in Xero payroll

By Sean Wyse Updated 12 January 2026 3 min read

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Disclaimer:
This guide is provided for general information purposes only. It does not constitute professional advice. Payroll and compliance requirements can vary, so you should always seek advice from a qualified professional for your specific circumstances. For further assistance, please contact Xero Support .

Frequently asked questions

1. How do I set a staff pay rate in Xero?

You can set a staff pay rate in Xero by opening the employee's pay template, adding an earnings line, entering the rate, and pressing save. Once added, Xero applies the rate automatically in every pay run.

2. Why should I add a pay rate in the Xero pay template?

Adding a pay rate in the pay template ensures it applies automatically in every pay run. This reduces manual entry, saves time, improves payroll accuracy, and supports compliance.

3. Can I add multiple earnings lines for an employee in Xero?

Yes. When updating a pay template, you can add multiple earnings lines if an employee has different pay items or allowances. This ensures all entitlements are applied correctly.

4. Do I need to update the pay rate every pay run in Xero?

No. Once the pay rate is set in the employee's pay template, Xero applies it automatically in every pay run. You only need to update it if the employee's pay rate changes.

5. What happens if I don't set a pay rate in Xero?

If you don't set a pay rate in the pay template, you must enter it manually each pay run. This increases the risk of errors, slows down payroll, and may cause compliance issues.

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Creating a pay template for Xero

This article explains how to set a staff member’s pay rate in Xero. Adding a pay rate directly into the employee’s pay template ensures it is included automatically in every pay run. This saves time, reduces manual work, and ensures payroll records remain accurate.

When the pay rate is set in the template, you no longer need to add or adjust it manually each pay run. Xero applies the rate consistently to the employee’s wages, which improves accuracy and compliance. Following this guide will help you manage staff pay correctly and ensure your payroll system runs smoothly. class="mb-6 text-gray-700" > This section explains how to add a staff member’s pay rate into their pay template. By doing this, the earnings line will apply automatically when generating pay runs. This helps reduce errors, ensures consistency across payroll, and gives staff confidence they are being paid the correct rate.

1.1 Open employee pay template in Xero

1.1.1 Open Xero.

Payroll section in RosterElf

1.1.2 Press Payroll > Employees.

Payroll section in RosterElf

1.1.3 Click on an employee.

Payroll section in RosterElf

1.1.4 Select Pay Template.

Payroll section in RosterElf

1.2 Add earnings line

1.2.1 Press Add Earnings line.

Payroll section in RosterElf

1.2.2 Select your earnings line you want to add.

Payroll section in RosterElf

1.2.3 Press Ok.

Payroll section in RosterElf

1.24 Add any additional earnings lines if needed.

1.3 Enter staff pay rate

1.3.1 Enter the staff member’s pay rate.

Payroll section in RosterElf

1.3.2 Press Save.

Payroll section in RosterElf class="mb-6 text-gray-700" > 1: How do I set a staff pay rate in Xero?

You can set a staff pay rate in Xero by opening the employee’s pay template, adding an earnings line, entering the rate, and pressing save. Once added, Xero applies the rate automatically in every pay run.

2: Why should I add a pay rate in the Xero pay template?

Adding a pay rate in the pay template ensures it applies automatically in every pay run. This reduces manual entry, saves time, improves payroll accuracy, and supports compliance.

3: Can I add multiple earnings lines for an employee in Xero?

Yes. When updating a pay template, you can add multiple earnings lines if an employee has different pay items or allowances. This ensures all entitlements are applied correctly.

4: Do I need to update the pay rate every pay run in Xero?

No. Once the pay rate is set in the employee’s pay template, Xero applies it automatically in every pay run. You only need to update it if the employee’s pay rate changes.

5: What happens if I don’t set a pay rate in Xero?

If you don’t set a pay rate in the pay template, you must enter it manually each pay run. This increases the risk of errors, slows down payroll, and may cause compliance issues.