Fixed

Provided that the employee has a fixed salary, the use of vacation and sick leave as outlined by the company’s policy does not affect their earnings, and the employee receives the agreed amount for the month without changes. If the employee takes unpaid leave, the calculation is as follows:

Assuming the employee’s salary is $2000, and there were 21 working days in February. If the employee takes one unpaid day off, the system divides the total amount by the number of working days to determine the amount for one working day and subtracts it from the total amount.

2000/21 = $95.24

2000 - 95.24 = $1904.76

If an employee with a fixed salary needs to be awarded a bonus, it is added on top of the base fixed amount.

Variable

The calculation for an employee with a variable salary depends on the number of working hours in the month and the tracked hours. If the employee’s compensation is set at $2000, and there are 168 working hours in February, but the employee only worked 100 hours, they will receive payment only for the hours worked. The calculation will be as follows:

(2000/168) × 100 = $1190.48

When an employee with a variable salary takes paid leave or sick leave, the calculation also depends on the number of working hours in the month and the reported hours. For example, if the employee took 3 days of leave in February, totaling 24 hours, and worked 144 hours, the total equals 168 hours — the monthly working hour norm for February.

The calculation for vacation compensation is as follows:

(2000/168) × 24 = $285.71

So, the compensation for 3 days of leave is approximately $285.71.

The total amount in the payroll would be shown as follows:

(2000/168) × 144 = $1714.29 (For hours worked)

(2000/168) × 24 = $285.71 (Vacation)

Hourly

In this type of compensation, an hourly rate is established for the employee, and the system will calculate the payment based on the number of hours reported. For example, if there are 168 working hours in February, and the employee reports the same number of hours at a rate of $15 per hour, the calculation would be as follows:

68 × 15 = $2520

If the employee reports 8 hours less than expected, for example, working only 160 hours instead of 168, they will be compensated based on the hours worked:

160 × 15 = $2400

Additionally, in the overall payroll table, there will be a downward red arrow indicating the number of unreported hours compared to the monthly norm. This visual cue helps to easily identify any discrepancies in reported hours for that month.

If the employee tracks more hours than the total number of calendar hours available, a yellow upward arrow will appear. This visual indicator highlights that the reported hours exceed the allowed amount for that period.

However, in this case, the overtime hours will not be compensated and will be marked in the payroll as unpaid. This distinction helps clarify that although the hours are reported, they do not contribute to the employee’s total earnings for that period.

To ensure compensation for those hours, the employee must have permission for overtime. If the permission is granted, the overtime hours will be paid, and there is also the option to set a higher rate for those hours.

In this example, if 5 hours of overtime are approved at a rate of $17, and the employee tracked 6 hours, the calculation would be as follows:

168 × 15 = $2520

5 × 17 = $85

When an hourly-paid employee takes a paid leave, compensation is calculated for those hours according to their hourly rate. In this example, if the employee took 2 days of leave (16 hours), the calculation for compensation would be as follows:

16 × 15 = $240

Worked 152 hours: 152 × 15 = $2280

Total 240 + 2280 = $2520