This articles describes various types of rate calculation options available for Salary Components in Runtime Payroll.
This article is Part 2 of ‘Types of Salary Component’. If you haven’t read Part 1, please read the same here: Types of Salary Components – Part 1 (Payment Mode)
Types of Rate Calcultions
There are 4 types of Rate Calculations available in Runtime Payroll:
- Divide by Fixed Days
- Divide by Month Days
Under ‘Fixed’ type, whatever you enter as employee’s salary is directly considered for calculation. No further adjustment or division is done.
Divide by Fixed Days
Under this type, the amount entered as employee salary is divided by a fixed number of days specified in the configuration. For e.g., if the salary entered is INR 15,000 and fixed days specified are 30, the salary calculation will be based on INR 15,000 / 30 = INR 500.
Additional Options: Check ‘Exclude Holidays’ and/or ‘Exclude Weekoffs’ to exclude them from total number of days count in a month/period.
Divide by Month Days
This is the most commonly used type of calculation. Under this method, the amount entered as employee salary is divided by number of days in the month. This number automatically changes month by month. For e.g. in the month of June, 30 days and in the month of July, 31 days will be used.
Additional Options: Check ‘Exclude Holidays’ and/or ‘Exclude Weekoffs’ to exclude them from total number of days count in the month/period.
Using a combination of ‘Payment Mode‘ and ‘Rate Calculation’, you can define almost any type of salary configuration.
Click here to signup for your free trial.