Processing employee salaries based on daily rate calculation

In Yomly, daily rate calculation is a feature designed to meet flexible calculation requirements and suits the needs of our diversified clientele.

A simple setting enables you to calculate the daily salary of each employee based on the value you select. The daily salaries can in turn be used for further calculations based on the requirements of your unique scenario.

To configure the Daily Rate Calculation setting, do the following:

  1. In the sidebar, in the Business section, click Settings.

  2. Go to Payroll > Payroll.

  3. Click Edit payroll.

  4. Select one of the following values for the Daily Rate Calculation field:

    • Calendar days in year (annual salary / 365)

    • Working days in year (annual salary /  ___ day) (In this option, you can manually configure the number of working days in the year.)

    • Days in month (monthly salary / days in month)

    • Days in 30 days (monthly salary / 30 day)

  5. Click Save.

Setting_up_the_daily_rate.png

Daily rate calculation enables you to process employee salaries in the following scenarios:

Scenario 1: Calculating prorated salaries for new joiners

You can calculate the salary of a new employee in your organization on a prorated basis (in the joining month) based on the value you select for Daily Rate Calculation field in Payroll settings.

The following example considers an employee with a gross monthly salary of AED 35000 who has joined an organization on August 10, 2022.

The employee's salary calculated in the pay run could be any of the following, depending on the daily rate calculation:

Calendar days in year Working days in year Days in month Days in 30 days

Calendar days in year (annual salary / 365)

With this Daily Rate Calculation setting, the employee's prorated salary in August 2022 is calculated in the following way:

Parameter Value
Gross monthly salary (Gross) 35000AED
Date of joining August 10, 2022
Number of days that the employee has worked for in the month (Days) 22
Pay run salary (Salary) [(Gross * 12) / 365] * Days
Salary = [(Gross * 12) / 365] * Days
     = [(35000 * 12) / 365] * 22
     = 25315.07

In the August 2022 pay run, the employee's payroll profile displays the calculated amount as the employee's prorated salary:

Scenario_1_-_Calendar_days_in_year__annual_salary_divide_by_365_.png

Scenario 2: Processing unpaid leaves

When processing the salary of an employee who with unpaid leaves in a particular month, Yomly first calculates the salary for all the unpaid leaves based on the value of the Daily Rate Calculation field (that you selected in in Payroll settings). Then, this amount is reduced from the gross monthly salary.

The following example considers an employee with a basic monthly salary of AED 25000 who has taken 2 unpaid days off in August.

Based on a Calendar days in year (annual salary / 365) Daily Rate Calculation setting, the employee's salary deduction displayed in the pay run is calculated in the following way:

Parameter Value
Basic monthly salary (Basic) 25000AED
Number of unpaid leave days availed (Days) 2
Amount deducted from the salary (Deduction) [(Basic * 12) / 365] * Days
Deduction = [(Basic * 12 / 365] * Days
     = [(25000 * 12) / 365] * 2
     = 1643.83

In the August 2022 pay run, the employee's payroll profile displays the calculated amount as the salary deduction:

Scenario_2_-_Unpaid_leave_calculation.png

Scenario 3: Setting up a unique pay run frequency

When processing employee salary payments on a weekly, fortnightly, or ad hoc basis, Yomly first calculates the salary per day based on the value of the Daily Rate Calculation field (that you selected in in Payroll settings). Then, Yomly computes the total salary based on the pay run frequency (see Setting up a unique payroll frequency) and period.

The following example considers an employee with a gross monthly salary of AED 15000.

Scenario_3_-_employees_salary.png

Based on a Days in 30 days (monthly salary / 30 day) Daily Rate Calculation setting and an Ad hoc pay run frequency setting, the employee's salary in a pay run between September 1, 2022 and September 15, 2022 is calculated in the following way:

Parameter Value
Gross monthly salary (Gross) 15000AED
Number of days that the employee has worked for in the pay run (Days) 15
Pay run salary (Salary) (Gross / 30) * Days
Salary = (Gross / 30) * Days
     = (15000 / 30) * 15
     = 7500

In the ad hoc pay run, the employee's payroll profile displays the calculated amount as the employee's salary:

Scenario_3_-_Payrun_Salary.png

Setting up a unique payroll frequency

You can set up a unique payroll frequency for any payroll group. Do the following:

  1. In the sidebar, in the Business section, click Settings.

  2. Go to Payroll > Payroll Groups.

  3. Click the payroll group for which you want to set up a unique frequency.

    The section is expanded

  4. Click Edit payroll group.

  5. Select one of the following values for the Frequency field:

    • Weekly
    • Fortnightly
    • Monthly
    • Ad hoc
  6. Click Save.

Scenario_3_-_Setting_up_payroll_frequency.png

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