Salary calculation types

There are three salary calculation types:

  • BaseSalary is based on a starting rate. For hourly positions, the starting hourly rate is used. For annual positions, the starting annual salary is used.
  • BaseRateAmountChange is based on a fixed amount increase. For hourly positions, an hourly increase amount is used. For annual positions, an annual increase amount is used.
  • BaseRatePercentChange is based on a percentage amount. This percentage is applied to the current base rate to determine the rate to use in the calculation formulas. For example, the current base rate is $10 an hour for an hourly position and the user enters 10% for a BaseRatePercentChange action. The rate change for this action is 10% of $10, or $1.

For hourly positions, the formula for calculating a salary type action for a specific period is:

Period value = Rate x Hours for this period x Number of pay periods x Phasing factor for this period

For annual positions, the formula for calculating a salary type action for a specific period is:

Period value = Rate x FTE for this period x Phasing factor for this period

Example 1: Salary calculation for hourly position

This example shows an hourly position with these settings:

  • Number of pay periods: 12
  • Phasing method: Even

    For each period the phasing factor = 1/12.

  • Hourly rate: $10
  • Hours: This table shows the hours and the corresponding start dates:
Start date Hours
1/1/17 100
3/1/17 50
6/16/17 25

This table shows the calculation results for the first seven periods of 2017 for a salary action that starts on February 15, 2017:

Month Period value Result
Jan $10 x( 0/31 x 100) x 12 x 1/12 $0
Feb $10 x (14/28 x 100) x 12 x 1/12 $500
Mar $10 x (31/31 x 50) x 12 x 1/12 $500
Apr $10 x (30/30 x 50) x 12 x 1/12 $500
May $10 x (31/31 x 50) x 12 x 1/12 $500
Jun $10 x ((15/30 x 50) + (15/30 x 25)) x 12 x 1/12 $375
Jul $10 x (31/31 x 25) x 12 x 1/12 $250

Example 2: Salary calculation for annual position

This example shows the salary calculation for an annual position with these settings:

  • Phasing method: Even

    For each period the phasing factor = 1/12.

  • Annual rate: $120,000
  • FTE: this table shows the FTE and its corresponding start dates:
Start date FTE
1/1/17 1.0
3/1/17 0.5
6/16/17 0.25

This table shows the salary calculation for the first seven periods of 2017 for a salary action that starts on February 15, 2017:

Month Period value Result
Jan $120,000 x (0/31 x 1.0) x 1/12 $0
Feb $120,000 x (14/28 x 1.0) x 1/12 $5,000
Mar $120,000 x (31/31 x 0.5) x 1/12 $5,000
Apr $120,000 x (30/30 x 0.5) x 1/12 $5,000
May $120,000 x (31/31 x 0.5) x 1/12 $5,000
Jun $120,000 x ((15/30 x 0.5) + (15/30 x 0.25)) x 1/12 $3,750
Jul $120,000 x (31/31 x 0.25) x 1/12 $2,500