Calculation of Hourly and Daily Rates

All the rates are either hourly or daily. For both, we have allowed for the situation in which employees have salary packages and need to have their hourly or daily rate calculated from their total package value.

To calculate the hourly rate, use the formula TER FM HOURLY RATE to:

  1. Determine if the employee is salary-packaged by checking for a value for rate code AUTVP.

    If there is no value for AUTVP, the system uses the employee's hourly rate.

  2. Retrieve the employee's standard hours frequency from the Job record in the Work Period field and passes it to AUS VR TEMP FREQUENCY.

  3. Use the variable to get the annualized factor AUS VR ANNL FCTR from the array AUS AR FREQUENCY.

  4. Divide AUTPV by the annualized factor, then divides by the employee's standard hours.

    (AUTVP ÷ AUS VR ANNL FCTR) ÷ STD HOURS = Hourly rate for packaged employee

To calculate the daily rate, formula TER FM DAILY RATE:

  1. Determines if the employee is salary-packaged by checking for a value for rate code AUTVP.

    If there is no value for AUTVP, the system uses the employee's daily rate.

  2. Divides AUTVP by the annualized factor for the daily frequency specified on the Additional Info - AUS page in the pay group component.

    AUTVP ÷ AUS DY FACTOR = Daily rate for packaged employee

Note: The system uses the system element DAILY RT as the daily rate for non-packaged employees. The daily rate is currently based on weekly rate ÷ 5. To calculate the daily rate differently, revise this formula.