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Hello, How is monthly salary is worked out for part months' please. I've put an example in the details. Kind Regards

Callum Kelly
 for instance if someone works 2 weeks of a month and they are on a monthly salary not paid by rota. Will it work their salary back to a day rate and pay by number of working days (based on that job title) for number of days worked? Or how is it worked out?
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Lauren Harvey

Hi {@0053z00000AqBiGAAV}​ 

 

If your Global Settings are set to calculate over 260 days per year, the daily rates consist of a basic calculation:  

Annual Salary / 260 = Daily Rate 

 

However in regards to Starter and Leaver calculations, the calculation is amended slightly as it uses calendar days. In this calculation the 260 days are divided over 12 months:  

260 / 12 = 21.66 units per month 

 

For an employee starting work on the 09/02/2015, the calculation would be:  

1 (month) / 21.66 (average days per month) = 0.046 (units per day) 

 0.046 x 15 working days (Monday – Friday working days) = 0.69 (units of salary due to employee) 

 

This calculation ensures that all salaries are fairly calculated as all months in the tax year are consistently based on 21.66 working days, rather than ranging from 20 – 23 days depending on which month an employee is created. 

 

Hope this helps.

 

Best,

Lauren

 

Lauren Harvey

Hi {@0053z00000AqBiGAAV}​ 

 

If your Global Settings are set to calculate over 260 days per year, the daily rates consist of a basic calculation:  

Annual Salary / 260 = Daily Rate 

 

However in regards to Starter and Leaver calculations, the calculation is amended slightly as it uses calendar days. In this calculation the 260 days are divided over 12 months:  

260 / 12 = 21.66 units per month 

 

For an employee starting work on the 09/02/2015, the calculation would be:  

1 (month) / 21.66 (average days per month) = 0.046 (units per day) 

 0.046 x 15 working days (Monday – Friday working days) = 0.69 (units of salary due to employee) 

 

This calculation ensures that all salaries are fairly calculated as all months in the tax year are consistently based on 21.66 working days, rather than ranging from 20 – 23 days depending on which month an employee is created. 

 

Hope this helps.

 

Best,

Lauren

 

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