Actual Days/Hours Displayed Within a Pay Run | Payroll Web Platform

1. Log into your payroll platform.
2. Go to the relevant Employee File.
3. Click on the Pay run defaults page.
4. Configure the Hours per week and Hours per day applicable to that employee.
5. Tick Use standard business settings and the system will automatically grey out both the 'Hours per week' and 'Days per week' fields, pulling their values directly from the Business settings > Details page.
6. Once this has been configured, the system will use these values to work out the maximum hours to allocate each day and for the week in total.
7. If there are employees who work a non-standard work week, they should be set up using the Advanced work week functionality. This guarantees that regardless of the business settings, the system will calculate the actual hours worked based on the individual employee work hours.

The system allocates working day hours starting on the business work week day, and then to weekends if there are hours remaining.

For example, an employee works 45 hours a week with 8 hours per day. If the business work week is Wednesday to Tuesday, then the employee work pattern is the following:

• Wednesday: 8 hrs
• Thursday: 8 hrs
• Friday: 8 hrs
• Saturday: 5 hrs
• Sunday: 0 hrs
• Monday: 8 hrs
• Tuesday: 8 hrs

In order to detail specific system calculations when determining actual days/hours worked, we will use a monthly pay run as an example. In this case, the pay period is 1/07/2023 to 31/07/2023.

Now, we will look at a few different scenarios when paying an employee a full month salary.

For businesses using 26 days to calculate ordinary rate

Example:
Employee works 8 hours per day, monthly salary is RM 5,000.
The calculation is 8 (hours per day) x 26 (number of work days each month) = 208 hours.
Hourly rate: RM 5,000 / 208 hours = RM 24.03846
Salary: RM 24.03846 x 208 hours = RM 5,000

For businesses using actual working days to calculate ordinary rate

Example:
Employee works 8 hours per day and the standard days per week for the business is 5 days.
The system will count Monday to Friday as work days.
For the period 01/07/2023 to 31/07/2023, there are 21 work days.
The calculation is 8 (hours per day) x 21 = 168 hours.
Hourly rate: RM 5,000 / 168 hours = RM 29.7619
Salary: RM 29.7619 x 168 hours = RM 5,000

For businesses using average working days to calculate ordinary rate

Example:
Employee works 8 hours per day and the standard days per week for the business is 5 days.
The system will average the number of work days in a month, i.e. 5 days per week x 52 weeks / 12 months = 21.66667 days.
The calculation is 8 (hours per day) x 21.66667 = 173.33 hours.
Hourly rate: RM 5,000 / 173.33 hours = RM 28.84671
Salary: RM 28.84671 x 173.33 hours = RM 5,000

If the employee has an advanced work week, the calculation will be based on the employee's working pattern regardless of the business formula used to calculate ordinary rate, e.g. with the below pattern:

• Monday: 8 hours
• Tuesday: 5 hours
• Wednesday: 9 hours
• Thursday: 6 hours
• Friday: 9 hours
• Saturday: 3 hours
• Sunday: 0 hours
• Total for the week: 40 hours

The calculation ends up to be a total of 131 hours, purely due to the days included in the July 2023 pay run, and the advanced hours allocated to each of them.

1. Log into your payroll platform.
2. Go to the relevant Employee File.
3. Click on the Pay run defaults page.
4. For salaried employees, the rate per hour within the pay run does not match the 'Equivalent per Hour' rate on the Employee file > Pay run defaults page.
5. This is because the rate on the Employee file > Pay run defaults page is based on the fact that the employee is configured to work 40 hours per week and earn RM 5,870 per month. So in that case, in order for them to earn exactly RM 5,870 per month, the calculation is: RM 5,870 x 12 / 52 / 40 = RM 33.86538. However, those figures are based on a 'standard' month which is 173.33 hours.
6. So, if the employee does not work exactly 173.33 hours in a monthly pay run, the system will adjust the hourly rate within the pay run to ensure their gross wage is still RM 5,870 for the month.

Where will I see the updated hours/days displayed?

The updated hours/days will display in the pay slip, in the pay run and flow through to reports where hours worked are displayed.