Hourly wage in case of monthly wage processing

Profit has a default hourly wage calculation to determine the hourly wage that is used, for example, to pay overtime hours. In principle, the hourly wage remains the same throughout the year.

In some situations Profit has to recalculate the monthly wage, for instance because the employee has taken some unpaid leave. In that situation Profit uses the actual hourly wage form the month by default. Based on this, Profit will deduct an amount from the basic salary. Because the actual hourly wage will differ per month, unpaid leave will be cheaper or more expensive, depending on the period.

Note:

This topic only applies to employees for whom the Apply timetable in Payroll check box has been selected.

Average hourly wage used in partial salary calculations

If you want to use the same hourly wage every month for partial salary calculations (such as 'Salaris (uit uren ziek)' or 'Vermindering salaris (uit uren onbetaald verlof)'), you can deviate from the default method. This can be necessary it the number of hours actually worked strongly fluctuates per month. Even in case of slight fluctuations, certain sectors may prefer a fixed hourly wage per month.

You apply this method by selecting the Apply average hours check box in HR / Organisation / CLA. You also indicate from which year on you want to apply this method. Profit determines the average hourly wage as follows:

Average number of hours = (Hours per week according to CLA * 52) /12 * (part-time percentage / 100)

Example:

The default working week has 40 hours. An employee earns a full-time salary of € 2,600 and has a part-time percentage of 60%.

Average number of hours per month = (40 * 52) / 12 * (60/100) = 104 hours

For a salary of € 2,600, the average hourly wage amounts to € 25.

If an employee has 8 hours of unpaid leave, Profit deducts 8 * 25 = € 200 from his salary.

If an employee is sick for a whole month or takes an entire month of leave, while the actual hourly wage is lower than the average hourly wage, it can occur that the pay slip shows a negative 'Salaris (uit uren gewerkt)' (which is compensated by 'Salaris (uit uren ziek)') or that the 'Vermindering salaris (uit uren onbetaald verlof)' is greater than the period wage.