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

# Compensation Types

> Every way you can pay people on Shor.

Shor supports four compensation structures. Pick the one that matches how you and the worker have agreed to structure the engagement.

## The Four Types

<CardGroup cols={2}>
  <Card title="Salary" icon="money-bill">
    A fixed recurring amount. Typical for full-time employees.
  </Card>

  <Card title="Hourly" icon="clock">
    Paid per hour worked. Requires timesheet submission and approval. Used for Pay-As-You-Go contracts.
  </Card>

  <Card title="Milestone" icon="flag-checkered">
    Paid when specific deliverables are accepted.
  </Card>

  <Card title="Retainer" icon="gem">
    A fixed recurring amount for ongoing availability. Used for Fixed Rate contractor contracts.
  </Card>
</CardGroup>

## Picking the Right Type

<AccordionGroup>
  <Accordion title="Use Salary For">
    * Full-time employees
    * Predictable long-term contractors on a monthly fee
    * Situations where you want a steady, predictable cash flow
  </Accordion>

  <Accordion title="Use Hourly For">
    * Consulting engagements with variable time commitment
    * Contractors where you want to pay only for time actually worked
    * Roles with a clear time-input-to-output relationship
  </Accordion>

  <Accordion title="Use Milestone For">
    * Project-based work with defined deliverables
    * Engagements where you want to tie payment to outcomes
    * Longer projects broken into phases
  </Accordion>

  <Accordion title="Use Retainer For">
    * Reserving a contractor's capacity without guaranteed work
    * Fractional roles (fractional CFO, fractional designer)
    * Situations where availability is as valuable as output
  </Accordion>
</AccordionGroup>

## Salary Units

For salary-based compensation, you can enter the amount as:

* **Per hour**: normalized to an annual equivalent
* **Per week**: for weekly pay cycles
* **Per month**: for monthly pay cycles (most common)
* **Per year**: an annual figure, divided across pay cycles

## Payment Frequency

For recurring compensation (salary, retainer), you pick how often to pay:

* **Weekly**: every seven days
* **Biweekly**: every two weeks
* **Monthly**: once a month

Monthly is the most common for global teams; weekly and biweekly are common for US hourly workers.

## First Payment Handling

For workers who start mid-period, you can choose:

* **Full amount**: pay the full period amount regardless of start date
* **Pro-rata**: pay only for the days worked in the starting period

Most companies use pro-rata for fairness and accurate accounting.

## Changing Compensation

To change a worker's rate or structure, open their profile and amend the contract. Both parties sign the amendment and the new compensation takes effect on the date you specify.

## Next Steps

<CardGroup cols={2}>
  <Card title="Running Payroll" icon="money-check-dollar" href="/employer/payroll">
    Schedule recurring pay runs for your team.
  </Card>

  <Card title="Milestones" icon="flag-checkered" href="/employer/milestones">
    Set up milestone tracking and payments.
  </Card>
</CardGroup>