Computing monthly salaries
Salaries may be calculated differently when a month includes an event.
Without events
You can compute monthly salaries when a month does not include an event:
Nominal Annual Salary * Month's Spread Factor / Total Spread
Factors
| Term | Definition |
|---|---|
| Nominal annual salary | The amount specified as the salary by the budget holder in the employee detail page for salaried employees |
| Month's spread factor | The spread factor (value that determines how the yearly salary is distributed each month) determined by the spread method assigned by the administrator to the employee type in Detail Budgeting Administrator |
| Total spread factors | The sum of the spread factors for the entire year |
For hourly employees, the nominal annual salary is calculated as follows (hours and amounts are specified by budget holders; the units per year are determined by the administrator):
Hours * Units Per Year * Amount
With events
- If an event occurs on the first of the month or if no event occurs that affects salary, the full month's salary is the salary used for that month.
- If an event that affects
the salary does not occur on the first of the month, the full month's salary is
the sum of partial salaries calculated for each applicable employee using this
formula:
(Monthly Salary A * Calendar Days Salary A in Effect / Calendar Days in Month) + (Monthly Salary B * Calendar Days Salary B in Effect / Calendar Days in Month)
Example
An employee with a salary of 24,000 is to receive a raise on February 10. Using the Even spread method for salaried employees, the monthly spread factor is 1 and the total of the spread factors is 12. After the raise, the employee has a salary of 28,800.
Event not in this month:
January Salary: 24,000 * 1/12 = 2,000
Event in the middle of the month:
February Salary: (2,000 * 9/28) + (2,400 * 19/28) =
2,271
Event not in this month:
March Salary: 28,800 * 1/12 = 2,400