Weighted period calculation at employment start or end

In case of an employment start or end, Profit always uses the actual number of working days or calendar days that the employee has been employed. This is dependent on the selected calculation method in the CLA’s settings.

Note:

Profit always applies the prorated calculation at the employment start or end, regardless of the setting in the CLA regarding the weighted period calculation.

For the calculation method based on calendar days, Profit first determines whether the number of actual timetable days matches the employee’s number of contract days in the period. If this does not match, Profit bases its calculation on calendar days.

Example: calculation on the basis of calendar days; number of timetable days and contract days is equal.

An employee enters employment on the first working day of January and receives a salary of 2,000. Employees are paid on a monthly basis.

The employee’s number of contract days in January is 20; the number of timetable days in January is 20 as well.

January period amount = 2,000.00

Example: calculation on the basis of calendar days; number of timetable days and contract days is not equal.

An employee enters employment on 6 January and receives a salary of 2,000. Employees are paid on a monthly basis.

The employee’s number of contract days in January is 20; the number of timetable days in January is 17. In this case the number of contract days is not equal to the number of timetable days. Profit now uses the calendar days to calculate the salary. The number of calendar days in January is 31 and the number of actual calendar days from the employment start date is 25.

January period amount = (25/31) x 2,000 = 1,612.90

Example: calculation on the basis of working days

An employee enters employment on 12 January and receives a salary of 2,000. Employees are paid on a monthly basis.

On 26 January, you raise the salary to 2,500. January has 15 working days from 12 January.

January period amount = (10/15) x 2,000 + (5/15) x 2,500 = 2,166.67

Period calculation in case of employment start and end in the same period

If an employee leaves employment and is then reemployed in the same period, Profit only includes the last contract in the salary processing. This only applies if the employment of the employee is actually ended. If you add a new contract line for the employee, Profit includes both contracts.

If the employment start and the employment end are within the same period, Profit uses the configuration of the 'last' agency line at the employee level. If there are no changes in the agency data at the employee level, you can select to enter the amount from the first contract in the second contract, for example on the 'Salaris' wage component. That way, you pay the amount from the first contract after all.