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Leave Deduction for Split Case Employees
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Article
No |
Q0012 |
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Version Applicability |
PERKS
2.45
and later |
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Last Reviewed On |
June
21, 2000 |
SYMPTOM: We have an employee with
a Split Pay Structure, where an employee has two Pay Structures Attachments due to the
fact that he has been promoted in the middle of the month. The employee had an initial pay
of 5,000.00 but after promotion he has been given a Pay Packet of 10,000.00. He has been
issued unpaid leave on 5th of May and on 25th of May as well. A monthly Pay Structure is
attached with the first Structure applicable from the 1st of May and the next
applicable from the 16th of May. Sunday is defined as the weekly holiday for
the Attendance Class. For the Attendance Class, ‘Daily Rate’ is being measured
as (number of working) ‘Days per week’ and ‘Pro Rated Calculations’
based on Total (number of) Days per month. ‘Total Days per month’ is measured
as, say, on the basis of ‘No of (calendar) days in period’. We wish to know that
how should his salary be deducted?
RESOLUTION:
While making
deductions on account of unpaid Leaves, the System makes deductions on the basis of daily
rate of salary as defined in the Attendance Master, which the concerned Pay Structure is
related to.
Depending on how we choose to determine
‘Daily Rate’, as available in the Attendance Master, the deduction on account of
unpaid Leaves will vary. Remember that this does not affect pro-rating salaries on account
of mid month joining, resigning, promotions, demotions or suspension or resumption of
salaries.
Whenever the daily paying rate of salary is
calculated on the basis of ‘Days per Week’ here is how the calculation proceeds.
First off, the annual salary on the basis of current month’s earnings is determined.
Since a monthly attendance class consists of 12 Periods, this will be:
(Current Period’s earning) x 12
As, there are 52 weeks in a year, the (current) weekly rate of salary
will be:
{ (Current Period’s earning) x 12 } / 52
Therefore the Daily Rate, on the basis of (working) ‘Days Per
Week’ will be:
[ { (Current Period’s earning) x 12 } / 52 ] x (No of working days
in week)
The ‘No of working days in a week’ depends on the number of
working being tagged for an Attendance Class. For example, For example, if for any
Particular Attendance Class, Sunday is an Off Day while Saturday is a Half day, then we
will have ‘No of working days in week’ as (7-1-0.5) = 5.5.
For the scenario described in the SYMPTOM section, we have ‘No of working days in
week’ as 6.0.
Hence, the Daily Rate as on 5th May will be:
{(5000.00 x 12) / 52} / 6.0
= 192.3076923077
= 192.31 (approx.)
Similarly, the Daily Rate as on 25th May will be:
{(10000.00 x 12) / 52} / 6.0
= 384.6153846154
= 384.61 (approx.)
Thus, total deduction being made at end of the period will be:
192.3076923077 + 384.6153846154
= 576.9230769231
= 576.92 (approx.) … (I)
Net Payable salary for the period will respectively, be:
{5000.00 – (5000.00/31) x 16} +
{10000.00 – (10000.00/31) x 15}
= (2419.35 + 5161.29) = 7580.64
It is clear that the payable
amount for each 'split' Period is being calculated by pro-rating the original (entitled)
value for a Head of Pay (HOP). If an HOP is marked Pro-rata as 'No', then you can use the
feature 'Split Calculation', and set the option to 'Split' rather than 'Default'.
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