This article explains the different types of payment modes for salary components in Runtime Payroll and how they are used for calculating payable salary.
Types of payment modes
Runtime Payroll features 4 types of payment modes for salary components:
- Paid Days Based
- Unit Based
- Time Based
Paid Days Based
Under this type, salary is calculated as follows:
Rate per day x No. of payable days in a period (month)
You need to define the salary of employees by providing a rate per day or per month
Consider this example:
Salary defined as: 15,000 per month
Days in month are: 30 days
Salary per day: 15,000 / 30 = 500 per day
Employee present for: 25 days (including presents, paid leaves, holidays, weekly offs)
Salary payable: 500 x 25 = 12,500
Under this type, salary calculation goes like this:
Rate per unit x No. of units in a period (month)
You need to define the salary by providing a rate per unit
You also need to input units payable every month for each employee.
Consider this example:
Salary defined as: 50 per unit
Units payable in a month: 200
Salary payable: 200 x 50 = 10,000
This payment mode calculates salary based on time data of an employee captured using attendance machine.
The number of hours payable are further divided in following types:
- Shift Hours
- Early Coming Hours
- In-Office Hours
- Out of Office Hours
- Late Going Hours
- Lunch Hours
For each ‘Time Based’ salary component, you can have a different configuration of payment. Here is an example configuration for one component:
As you can see from above screenshot, we have defined following configuration:
- If employee is present on a day, he will be paid for number of hours he/she was in the office
- If employee is absent, no payable hours are configured
- If employee has holiday or weekly off, ‘Shift Hours’ are payable. This means that entire day is payable.
- If employee is on Casual Leave or Sick Leave, again Shift Hours are payable. This means Casual/Sick Leaves are fully payable.
You can configure these settings as per your business policy.
Under this type of component, you need to enter the amount payable to an employee in a particular month. There is no calculation involved here.
Further reading: Types of Salary Component – Part 2 (Rate Calculation)