Labour relation and wage component allocation

In the wage calculation Profit calculates certain things by default for each labour relationship and different things for each employment.

• Labour relation

  Calculation of wage components that cannot be allocated to a specific employment, such as 'Afdrachtvermindering’, franchise, maximum and ‘spaarloon’.

• Employment

  Most wage components are calculated by employment, such as salary, overtime, personal allowances, ‘Loonheffing’ and employee insurance premiums.

Splitting of wage components calculated by labour relation

Profit divides the wage components calculated by labour relation across employments on the basis of the part-time salary (employee properties, Salary tab). If an employee, for example, has two employments, each with a fixed timetable, this distribution will work well.

In case of a combination of employments, where one employment is related to an hourly paid employee, it may be necessary to use a different distribution. You can overrule the default distribution of Profit with your own distribution, to ensure that the wage components are split up properly. For example, this applies to employees for whom the part-time salary (of the main employment) is incidentally much lower than the hourly paid wage (of the second employment), while you recorded a distribution with a high percentage for the main employment.

Example:

An employee has the following employments:

• Employment 1 (Main employment): Fixed salary of € 150.00 per wage time frame.
• Employment 2 (Additional employment): hourly paid employee with average salary of € 2,000.00 per wage time frame.

  The pension premium is 10% and is calculated over the labour relation.

  The following now happens during the wage calculation assuming the default method:

• Profit determines the pension premium during the wage calculation: 2,150 x 10% = € 215.00.
• Profit splits this pension premium by employment on the basis of the part-time salary. This means that 100% of the pension premium is assigned to Employment 1.
• The fixed salary (for Employment 1) is € 150.00. After deducting the pension premium a negative premium basis for employee insurances and the ‘Loonheffing’ wage results.

In order to avoid an erroneous calculation in extreme situations, you can enter an adjusted wage component distribution for the relevant period in the main employment’s properties. Profit can then apply the correct distribution instead of the distribution based on the part-time salary.

If the ratio of the employments significantly changes from period to period, then you adjust the wage component distribution on a regular basis. You add a new line for this purpose on the employee’s Main employment tab. Specify the correct distribution on this line.