Blog

How to calculate pro-rated first or exit salary

0 | 61

1. Sometimes a staff might join us in the middle of the month and we need to pro-rate his/her first salary without editing their basic salary eg Beth joined on the 20th of April. When setting up the staff we set the "Employment Date" under the "Summary of employment contract" to the date when we the employee started working. 

2. Sometimes a staff might leave us in the middle of the month and we need to pro-rate his/her exit or last salary without editing their basic salary eg Daniel last day of work is on the 16th of April. When exiting the staff we set the "Termination Reason Category" and "Relieving Date or last day of work" under the "Exit" Section to the last working date of the staff. Note, if you only set the "Termination Reason Category" the employee will not appear when processing payroll. So if we want to pro-rate the last payroll, we need to set both fields. 

3. Hence, when processing payroll, the system will automatically calculate the amount payable based on the number of days worked. 

First payroll: 

1BETH NJOKI (31,000.00) Employment date: 20/04/2019  Calculated salary: 10,333.33  Daily rate: 1,033.33 Days in month: 30.00 Days worked: 10.00

Exit payroll: 

2DANIEL GITONGA (31,000.00) Relieving date or last date of work: 16/04/2019  Calculated salary: 16,533.33  Daily rate: 1,033.33 Days in month: 30.00 Days worked: 16.00


4. Also, in the payslips there will be a description of how the basic salary was arrived at. 

First payslip for Beth:

Exit or last payslip for Daniel

5. These two features are independent of each other and you can enable or disable either of them by going to "Payroll settings" > and clicking "Payroll settings" menu item and setting the "Consider employment date when processing payroll" or "Consider relieving date when processing payroll" to "Yes" or "No" and click the "Save" button.


Comments


Submit a comment

Your email address will not be published. Required fields are marked *

Back to list

About us

Sapama ERP is a cloud-based Enterprise Resource Planning (ERP) software for small and medium sized organizations.