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How Hourly Rate Is Calculated in Better HR — and How to Adjust It

Hourly Rate Calculation in Better HR

Myo Zaw Hein avatar
Written by Myo Zaw Hein
Updated over 3 weeks ago

System Hourly Rate Formula

By default, Better HR uses the labor law method to calculate hourly rate:

Hourly Rate = (12 × Basic Salary) ÷ (52 × Weekly Working Hours)

📌 Example:

  • Basic Salary: 300,000 MMK

  • Weekly Working Hours: 40

Hourly Rate = (12 × 300,000) ÷ (52 × 40) = 1,730.77 MMK


When Clients Use a Different Hourly Rate Method

Some clients prefer to use a different logic like:

Basic Salary ÷ Days of Month ÷ Daily Working Hours

📌 Example:

  • 300,000 ÷ 30 ÷ 8 = 1,250 MMK

But since the system doesn’t directly support this formula, the only workaround is to adjust the Weekly Working Hours value in the policy.


How to Reverse-Engineer the Working Hours

To get the system to match your target hourly rate:

Use the standard formula and solve for Weekly Hours:

📌 Example:

  • Target Hourly Rate = 1,250 MMK

  • Basic Salary = 300,000 MMK

Step 1:
1,250 = (12 × 300,000) ÷ (52 × Weekly Hours)

Step 2:
Weekly Hours = (12 × 300,000) ÷ (52 × 1,250)
Weekly Hours = 3,600,000 ÷ 65,000
Weekly Hours ≈ 55.38

📌 So, set the "Working Hours Per Week" in your policy to 55.38 to match the client's expected hourly rate.


🔍 Where This Hourly Rate Appears

  • The hourly rate is shown only in the Payroll → Hourly Rate column.

  • ⚠️ It does not affect overtime/hourly payments for those using Project-Based Payment & OT, as those have their own calculation setup.

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