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Working Hour Calculation Logic

Written by Myo Zaw Hein
Updated today

The system now supports advanced logic to calculate allowances based on the exact nature of the hours worked. This ensures payroll accuracy across various shift types and employee grades.

Setting Up Working Hour Pay (Custom Benefits)

To configure specialized pay based on hours worked, follow this path: Settings

Payroll > Create Custom Benefit

Enter Name > Calculation Logics > Working Hour Pay

Calculate Based On > Confirm


1. Working Hour Pay Categories

Define unique rates for different calendar and shift scenarios:

  • On-Shift Working Hour: Regular hours worked during a scheduled shift.

  • Day Off Working Hour: Hours worked on an employee's scheduled day off.

  • Public Holiday Working Hour: Hours worked on a recognized public holiday.

  • Shift on Public Holiday: Specific logic for regular shifts that happen to fall on a holiday.

  • Off Day on Public Holiday: Compensation when a holiday falls on an employee's existing day off.

  • On Half-Day Leave Working Hour: Pay for the remaining time worked when an employee takes only a half-day of leave.


2. Configurable Condition Checks

Add "safety" filters to ensure the benefit is only applied to the correct records:

  • Eligibility Filters: Limit pay by Job Position, Position Badge, or Job Grade.

  • Time Range Constraints: Set a specific Check-in/out Range (e.g., only calculate pay for hours between 08:00 and 18:00).

  • Thresholds: Set a Maximum Cap (max payable minutes) and Grace Minutes (an initial unpaid "buffer").

  • Early Check-In Policy: Toggle "Don't include early check-in minutes" to ignore time recorded before the official shift start.


3. Advanced Rounding Rules

Clean up minute calculations for professional, easy-to-read payroll reports:

  • Linear Interval: Rounding by a consistent block (e.g., rounding to the nearest 15 minutes).

  • Non-Linear Time Interval: Create custom tiers (e.g., 1–7 mins rounds down to 0; 8–15 mins rounds up to 15).


4. Calculation Methods

Determine how the final monetary value is reached:

  • Salary Based: The system automatically calculates an hourly rate using the Basic Salary and a monthly divisor.

  • Flat Rate: You manually set a fixed, manual amount per hour, regardless of the employee's salary level.


[!TIP] Strategic Use Case: Use Flat Rate for "Public Holiday" hours to give every employee a standard $50 incentive, while using Salary Based for "On-Shift" hours to maintain their contractually agreed hourly rate.


βœ… Logic Implemented: Your payroll policy now accurately reflects these advanced working hour rules.

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