Calculate a wage component
A calculation rule is at the heart of a wage component. It is the mathematical formula that gives the wage component its ultimate value.
Description
A calculation rule can be a simple formula, for example, ‘a * b * c’. It can also be a very complex formula in which Profit checks various things and depending on certain values or settings follows path 1 or path 2 of the calculation. For example, the calculation of the ‘Loonheffing’ is dependent on the white or green table (for employees below or over 65 years of age, respectively).
No matter how simple or complex, you can always trace the calculation rule back to a formula with operators and parameters. Operators are arithmetic calculation methods such as plus, minus, multiplication, division, etc. Parameters are the numbers that the operators operate on. The formula ‘a * b * c’ has two operators and three parameters. When you assign a value to the parameters, Profit calculates the result of the formula.
The input for the wage component for overtime, for example, consists of the number of hours the employee works overtime, the employee’s hourly wage and the percentage rate applied to the overtime.
The formula then is number of hours x hourly wage x percentage. For 10 hours of overtime at 150%, at an hourly wage of € 15.00 the result would be € 225.00.
Procedure
- Operation of a wage component
For every wage component a comment is included that explains how the wage component works. For a correct application of the wage component, always read the comment first.
- Wage component calculation rule
A calculation rule is at the heart of a wage component. It is the mathematical formula that gives the wage component its ultimate value.
- Wage component formula
Profit calculates the value of the wage component using a formula. If the wage component uses the ‘Flexible calculation rule', then Profit displays the formula on the Formula tab. Profit does not display a formula for the other calculation rules because these are far too complex.