How are hours and rates calculated for different payment methods in rules?

The table below explains how the hours and rates are calculated for each of the payment methods:

Payment Method

Description of Payment / Method of Calculation

Standard

 

 

  • Hourly Rate is calculated from the Standard Absence Hourly Rate as set in Employee | Absence for the Effective Date on or before the Diary Event.

    • If the Employee is on a Derived Shift Pattern, the Daily Hours comes from the Standard Absence Daily Hours as set on the Employee | Absence for the Effective Date on or before the Diary Event

    • If the Employee is on a Defined shift pattern, the Daily Hours will first come from the Standard Absence Daily Hours. If the System Setting Absence Pay over keyed Paid Event Duration Hours is selected and the Entitlement UOM is hours, or the Standard Absence Daily Hours is 0, the daily hours will come from the shift pattern hours

 

Average

 

 

 

 

  • Looking at the previous number of maximum calculation weeks, the duty duration and pay is summed. Once the number Average Calculation weeks is met, skipping any weeks with no duties, counting is finished

  • If no duties are found, or the Employee has started in the current count weeks, the daily hours and rate come from the Employees Average Daily Hours and Average Daily Rate as set on the Employee | Pay Details

  • If the Absence Scheme Average Settings are to use Days in period and pay working days, the average daily hours and rate will be the average of all found duties and rate

    • AVERAGE DAILY HOURS = (TOTALMINUTESCOUNTER / 60.0) / (TOTAL DUTIES AND DIARY EVENTS)

    • AVERAGE HOURLY RATE = TOTAL DUTY AMOUNT PAID / (TOTAL DUTY MINUTES / 60.0)

  • Otherwise, the average daily hours and rate will be the average hours divided by the normal working week. The average rate will be the average of all rates

    • AVERAGE DAILY HOURS = ((TOTALMINUTESCOUNTER / 60.0) / AVERAGE CALC WEEKS) / NORMAL WORKING WEEK

    • AVERAGE HOURLY RATE = TOTAL DUTY AMOUNT PAID / (TOTAL DUTY MINUTES / 60.0)

 

Never Auto Calculate (Limited Support)

  • Employee averages are calculated in a customer specific stored procedure that runs overnight to populate the Employee Averages table

  • If this is greater than the Maximum / Minimum Average Paid Hours, then the hours
    will be truncated

  • Average Daily Hours and Average Daily Rate are then from the Employee averages table

  • The daily hours and rate are then capped at the minimum / maximum average paid rate and hours

 

Average Employee Basic Rate

  • Can only be used with derived shift patterns

  • This is the same as Average, but the Average Hourly Rate always comes from the Basic Employee Rate (i.e. it is not site specific)

  • Hours are calculated by reading back through x weeks of Duty Rates records (defined by the rule) and dividing that figure by the number of weeks that contain data and the number of work days per week

  • Rate is taken from the employee’s basic rate as per Set Up | Employee | Pay Details | Absence Setting

 

Average Contracted Hours and Rate

 

  • This is the same as Average, but then the Average Daily Hours will come from the hours per day the Employee should be contracted to work, as set in Employee | Absence, Contracted Hours and Working Days

  • Can be used with both defined and derived shift patterns

  • Hours are taken from the shift pattern (either defined or derived)

  • Rate is calculated in the same way as for the Average type

 

Average Shift Pattern Site Rate

  • Can only be used with derived shift patterns

  • Looking at the previous number of maximum calculation weeks, the duty duration and pay is summed. Once the number Average Calculation weeks is met, skipping any weeks with no duties, counting is finished

  • If no duties are found, or the Employee has started in the current count weeks, the daily hours and rate come from the Employees Average Daily Hours and Rate as set in Employee | Pay Details

  • For Defined Shift Pattern, the rate will always be the post pay rate standard absence hourly rate for the effective date on or before the duty as set in Employee | Absence

  • For a Derived Shift Pattern, the rate will be based of the pay method for that pay level; Table Rate, Employee Basic Rate, Greater of Base or Table Rate, Lesser of Base or Table Rate. This is multiplied by any Pay Multiplier or Bill Column if this is 0

  • The daily hours are then calculated from the sum of all the hours and rate, divided by the normal working week value

  • If the Absence Scheme has average days to use as days in period and paid days of working days, the daily hours are divided by the total duties and the Hourly rate by the total hours

 

Average Shift Pattern Absence Rate

 

 

 

  • As Average Shift Pattern Site Rate, but the rate will always come from the Employee Standard Absence Rate.

  • Uses Average Daily Shift Hours calculated by reading back through x weeks of the Derived Shift Pattern (defined by the rule) and dividing that figure by the number of weeks that contain data and the number of work days per week

  • Rate is taken from the employee’s Standard Absence Hourly Rate from Set Up | Employee | Pay Details | Absence Setting

 

Shift Pattern Site Rate

 

  • An Employee on a Derived shift pattern will be paid the rate and hours they are expected to be paid on that day

  • If this is 0 or the Employee is on a Defined shift pattern, it will fall back to the Employees Standard Daily Hours and Standard Absence Hourly Rate

  • If this is 0, it will fall back to the Branch Standard Daily Hours and Standard Absence Hourly Rate for the Employees branch

 

Shift Pattern
Absence Rate

 

  • The hours and rate will always come from the Employees Standard Absence Hourly rate and Standard Daily Hours

  • Hours are taken from the Derived Shift Pattern table for each day in the diary event.

  • Rate is taken from the employee’s Standard Absence Hourly Rate from Set Up | Employee | Absence

 

Average Hours and Site Rate

 

  • For the Hours, same as Average

  • For the Rate, same as Shift Pattern Site Rate

  • Hours are calculated by reading back through x weeks of Duty Rates records (defined by the rule) and dividing that figure by the number of weeks that contain data and the number of work days per week

  • Rate is calculated based on the site, hour type and pay level for each day within the derived shift pattern

 

Contracted Hours and Average Composite Rate (Composite Hours/Average Rate)

  • This rule is very specific and to the best of our knowledge, only used by one of our customers. It is unlikely that this will be the way for you to calculate average hours and rates.

    The calculation of the hours is simply calculated by dividing contracted days into contracted hours (as defined on the employee absence tab). The rate is a little more complex. The calculation of the average hourly rate is pretty much a “standard” average calculation as per the standard average hours/rate calculation, with the exception of excluding any weeks data where that week contained any sickness.

    This is capped by the Minimum / Maximum Average paid hours

  • The calculation of the composite hours is more complex using the following formula:

  • Copy 
    Composite Daily Hours = (((((AverageHoursPerDay / 
    EmployeeContractedDaysPerWeek) * AverageDaysPerWeek) * 
    (EmployeeContractedDaysPerWeek * StandardEntitlement)) + 
    (ContractedHoursPerDay * (EmployeeContractedDaysPerWeek * BHEntitlement))) / 
    ((EmployeeContractedDaysPerWeek * StandardEntitlement) + 
    (EmployeeContractedDaysPerWeek * BHEntitlement)))

 
Contracted Hours and Greater of Average/Basic Rate

  • This rule enables you to pay absence where if the calculated average hourly rate is greater than an employee’s current hourly pay rate then that average hourly rate should be used, but if the calculated average hourly rate is less than an employee currently hourly rate, then the current hourly rate should be used.

  • The hours are the employees contracted hours, their working days / daily hours.

  • The rate is the employees average rate, if this is higher than their employee basic rate (just basic rate, not site rate).

  • Rate is the employees basic rate, if this is higher than their average rate.

The following scenarios illustrate how this works

An employee is contracted to 40 hours per week over 5 working days currently at £10 per hour (but £9) last year before pay rise.

Scenario 1

  • Earnings over the last eligible 52 weeks are £18,720.00

  • Weekly average is £18,720.00 / 52 weeks, gives £360.00 per week

  • £360 per 40 hour week equates to £9.00 per hour (calculated hourly rate)

  • The rule states, pay £9.00 but IF < THAN £10.00, pay £10.00 per hour

  • Individuals calculated hourly rate is therefore £10.00

Scenario 2

  • Earnings over the last eligible 52 weeks is £25,600.00

  • Weekly average is £25,600.00 / 52 weeks, gives £492.30 per week

  • £492.30 per 40 hour week equates to £12.30 per hour (calculated hourly rate)

  • The rule states, pay £12.30 but IF < THAN £10.00, pay £10.00 per hour

  • Individuals calculated hourly rate in this scenario is therefore £12.30

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