"Daily Salary based on" Explanation

There is an option Daily Salary based on under Payroll Module Setup, Payroll Tab, Prorated Salary / No Pay Rate Basis or Employee Class, Payroll tab.

Daily Salary based on also known as Paid Days Definition.

The options for "Daily Salary based on" for both Global Working Hours Employees and Roster Employees are,

  • Calendar Days (Default and Recommend#) - every day at employment is paid.

  • Calendar Days No Saturday - Saturdays are not paid (except Statutory Holiday falls on Saturday).

  • Calendar Days No Sunday- Sundays are not paid (except Statutory Holiday falls on Sunday).

  • 30 Days Average (not recommend)- every month is 30 days and the daily rate is pro rata.

  • 30 Days Maximum (not recommend) - every month is always 30 days and the daily rate is always 30 days but the days between are a maximum of 30 days.

The options for "Daily Salary based on" for Global Working Hours Employees only are,

  • Weekdays - Monday to Friday (optionally Saturdays*) are paid, Sundays are not paid.

  • Weekdays+SH - Monday to Friday (optionally Saturdays*) and Statutory Holiday are paid.

  • Weekdays+PH - Monday to Friday (optionally Saturdays*) and Public Holiday (maybe on Saturdays) are paid.

  • Weekdays+SH-PH - Monday to Friday (optionally Saturdays*) and Statutory Holiday are paid but exclude the Public Holidays (that are not Statutory Holiday).

* optionally Saturdays - Number of paid days (1, 0.5, 0) for Saturday depending on the option Saturday as Paid Day in Global Working Hours.

The options for "Daily Salary based on" for Roster Employees are,

  • Roster Normal Days - Roster table with Shift Codes are normal days are paid days.

  • Roster Normal+Rest Day - Roster table with Shift Codes are normal days or Rest days are paid days.

  • Roster Normal+SH - Roster table with Shift Codes are normal days or Statutory Holidays are paid days.

# Most Labour Ordinance and MPFA Ordinance assumed everyday is paid for Monthly Rate Employee.

Assume the Roster Table is defined as 25 Normal Days, 5 Rest Days and 1 SH.

* Normal Days can be 1 paid day, 0.5 paid days or 0 paid days depending on the setting Paid Day treated as in Shift Code.

For Monthly Rate Employee. The purposes of this option are,

  1. Calculate the Number of Paid Days of the month and hence calculate the Daily Rate of the month.

  2. Calculate Daily Rate for No Pay Leave (if No Pay Leave Rate Formula is not defined in Employee Class).

  3. Calculate Daily Wage for 12-month Average Wage to comply with EAO 2007.

  4. Calculate the First Salary and Final Salary if the joining period and termination period are not at a complete month.

For Daily Rate Employee (with “Pay Regular Days for Daily Rate Employee” in Payroll Module Setup is turned on). The purposes of this option are,

  1. Calculate the Number of Days for Salary.

  2. Calculate the Number of Statutory holidays for Holiday Pay.

Examples of the effect of difference option

Assumptions:

  • Payroll Period March 2014.

  • Monthly Basic Salary of $10,000.

  • When Weekdays, assumed Saturday is not off.

  • When Roster Normal Days, assumed 15 days Normal days in March.

  • When Roster Normal+Rest Days, assumed 15 days Normal days and 2 Rest days in March.