What are the payroll formulas?

Modified on Mon, 15 Jan at 2:26 PM

To better understand how certain pay types work, here is a list of the formulas underlying the calculations for common pay types.

Overtime

(Basic Salary x 12 months) / (52 weeks x working hours per week)

The working hours per week is based on what is set under Work Week.

You have the option of using either of these formulas:

(Basic Salary x 12 months) / (No. of working days per week x 52 weeks) x No. of entitled leave days
(Gross Rate x 12 months) / (No. of working days per week x 52 weeks) x No. of entitled leave days

Days: Daily Gross Rate = (Gross Rate / No. of working days in month) x No. of unpaid days

Hours: Hourly Gross Rate = (Daily Gross Rate / Average working hours per day (for a week)) x No. of unpaid hours

Minutes: Hourly Gross Rate / 60 minutes x No. of unpaid minutes

You may choose to add other pay types on top of the Basic Salary to be included in calculations. This makes up the Gross Rate.

Gross Rate = Basic Salary + Any Additional Pay Types that are "in gross rate".