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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 yesterday

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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