Understanding Average Salary Calculations

Employees who receive variable compensation, such as overtime or a differential for a night shift, may be entitled to have their vacation, termination, 13th salary, and maternity pay based on their average variable payments. Eligibility for the average salary allowance depends on union rules and the Consolidated Labor Laws (CLT).

To define your organization's rules for calculating the average salary:

  1. Use the Average Versions BRA page to identify which earning and deduction elements the system considers for the average salary version.

    Use this page to define the average salary calculation parameters for these elements.

  2. Use the Averages page of the Union Parameters BRA component to associate, for a given union, the average salary version (identified in Step 1) that the system considers when calculating the average salary for members of that union.

    You can select different earning and deduction elements for each run type.

When you run the payroll process, the system looks at the information you defined on the Averages page to determine which earnings and deductions to consider when calculating the employee's average salary. It then looks at the Average Version BRA page for the specific calculation rules.

The Averages Report

After you run the payroll process, you can generate the Averages report (GPBRME01) to view the detailed calculations the system performed to compute employees' average salary. You can produce the report for selected establishments, departments, employees, or groups.

To produce the Averages report, the payroll process must store detailed results in two writable arrays: MD WA MEDIAS ENC stores header information for the report and MD WA MEDIAS stores details. As delivered, both writable arrays are configured to store payroll results. If you do not want to produce the Averages report, you should set the value of variable MD VR DETALHE MED to false (0) to prevent the system from populating the writable arrays. The variable is set to true (1) by default. Storing results can affect system performance. To generate the Average report, MD VR DETALHE MED must be set to 1 when the payroll process is run.