When creating or updating a pay item, users have the option between Fixed and Variable Amount Type. The variable amount type is further broken down into 4 options. 

Picking the right option that complements the specified pay item is important to ensure a more efficient process flow when running payroll

Amount Type:
Fixed: Amount is the same every month
Variable: Amount varies from month to month

In the case where a particular pay item is both fixed and variable for different employees, one has the option to create 2 of the same pay items and assign them to the employees accordingly [Example: Petrol Claims (Fixed), Petrol Claims (Variable)].

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Variable Amount Type:

  • Ad-Hoc Amount:
    This option allows user to key in their own defined amount when running payroll. If calculations are done on a separate excel sheet, the values can also be copied and paste directly. This option is suitable for pay items like annual bonus.

    Note: Be sure to sort the employees by ID or Name before pasting to avoid data inaccuracy.

  • Percentage (%) of hourly rate:
    This option is especially useful for overtime calculations, or any pay item that is assigned to employees of varying hourly rates. 

Formula:
[(Total Hours) + (Total Minutes/60)) * Hourly Rate] * Percentage = Pay Item Amount

The Start and End Date set will be reflected in the generated payslip as seen below:

  • Amount based on defined amount:
    This option allows you to input a 'Daily Rate' in the pay item setup and you'll simply need to enter the 'Days' when running payroll. HReasily will then calculate to total amount for you. This option is suitable for calculating pay items like leave encashment & unpaid leaves.

    Daily Rate can be treated as Amount while Days can be treated as Quantity.

    Example: For each mobile phone sold, a sales person receives a commission of S$10. Simply input $10 in the Daily Rate field, and the total quantity sold that month can be entered in the Days field.

Formula:
Days (Qty) * Daily Rate (Amount) = Pay Item Amount
  • Amount based on defined hourly rate:
    This option allows you to define the pay item amount based on the Total Hours * Hourly Rate. This option is especially helpful if you have employees whose basic salary is calculated based on hourly instead of monthly

Formula:
(Total Hours) + (Total Minutes/60)) * Hourly Rate = Pay Item Amount


Additional Remarks:

  • Copy & paste only works with Fixed amount and Ad-Hoc Amount (Variable)


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