Calculating Basic Salary Earnings
Basic salary (BASSAL) is an earning element with a flat amount that is paid at the earning level only. Basic salary is paid once per month for permanent employees, in the first month for new hires, and in the last month for terminated employees.
The calculation rule is Amount which is the system element COMPRATE—the monthly compensation rate of the payee.
The system uses pay group proration whenever there is a partial period or when a pay rate change occurs during the pay period. Following are examples of the partial basic salary earning calculation:
Example 1
An employee is hired on February 20, 2000 with a salary of 1000 HKD. The basic salary is calculated as:
10 / 29 × 1000 = 344.83
Example 2
If an employee salary increases to 1200 HKD effective March 18, 2000, then the March basic salary is calculated as:
(17 / 31 × 1000) + (14 / 31 × 1200) = 548.39 + 541.94 = 1090.33