How do I calculate part monthly salary?



ORIGINAL POST
Posted by Becki1975 16 yrs ago
I have always paid my helper for each calendar month in full. She will be leaving us part way through a month. Please can you tell me how I should calculate her part monthly salary?


In addition I am paying her out of her annual leave (14 days). Please advise how I calcuate the 'value' of that as well.


Many thanks

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COMMENTS
xmauix 16 yrs ago
I calculated mine when she left as salary divided by 30 days = $$$ per day


then $per day multiplied by days she's worked for me + annual leave left = total

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optimistic 16 yrs ago
Days in month minus 4 x days off, divide this by what she earns per moth to get figure per day then multiply that by the amount of days worked. We don't pay helpers for rest days so we can't count it when working out daily rate.

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paenme 16 yrs ago
I multiply the monthly salary by 12 (to get the full year salary) then divide by 365 to arrive at the daily rate. This would compensate for the uneven number of days from month to month during the year.


I then count how many days she actually worked to determine how many paid weekly holidays are entitled, she is entitled to one paid holiday for every six days worked.

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optimistic 16 yrs ago
Paenme she doesn't work 365 days a year, at least i hope she doesn't.... she works 6 days a week not 7

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smallfry 16 yrs ago
optimistic


a helper's rest days are paid days off - not unpaid - and so are included in calculating the daily rate - whether monthly or annually. Similarly, the helper is employed for the whole year even if she doesn't work every day of that year.


the contract stipulates that the helper is paid per calendar month and the helper is generally entitled to be paid for each day in that month - whether it is a work day, rest day, statutory holiday, sick day or annual leave day so the monthly salary should be divided by the number of days in the month not by the number of days less rest days. The alternative is the method proposed by paenme.

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optimistic 16 yrs ago
I have always calculated such things based on a 6 day week as that is what my helper works and would feel i was cheating my helper if i did it on a 7 day week. Everyone to there own of course but i don't know any company who calculates such things based on a 365 days a year formula.

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miao miao 16 yrs ago
optimistic and smallfry -- i think if you calculate the daily rate based on a 6-day week, then when you pay for part of a month you will multiply that daily rate by the number of working days actually worked. on the other hand, if you calculate the daily rate based on a 7-day week, then you will multiply that daily rate by the number of all calender days within the period she worked including both working days and rest days (i think that's what smallfry meant). as long as you are consistent i guess either way should be fine.


for example, assuming your helper worked for two weeks during a 30-day month --


under the 6-day week method, the payable amount would be: (monthly rate/26)*12


under the 7-day week method, the payable amount would be: (monthly rate/30)*14


you get almost the same amount either way. am i right?

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paenme 16 yrs ago
optimistic, you obviously did not understand the my last sentence. If 7 days is used to derive the daily rate, then part two of the calculations (i.e. multiplication) need to include the one paid holiday (i.e. the 7th day that is a paid holiday). If 6 days is used, then the multiplication would not include the weekly holiday. One other consideration is that if any statutory holidays fall within the period, those would be included as payable as well.


The 6-day formula may not work as well when you consider that the statutory holidays can skew the true daily rate. In addition, your formula assumes there are 4 holidays per month which makes 48 holidays per year, when we all know there are 52 weeks in a year.

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paenme 16 yrs ago
Another problem with using 6-days per week (i.e. 317 days per year) is that it ignores the annual leave. If one insists on using the actual work days then the formula should be - monthly salary x 12, then divide by the sum of (365 - 52 rest days - number of stat holidays (12?) - prorated annual leave days)... Gets too complicated.


Accordingly optimisic, I am afraid you have actually under calculated your dh's entitled pay.

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optimistic 16 yrs ago
I calculated on weeks of the year minus sundays off which is what my helper works (she actually only works five and a half days but that is our choice) As holidays and stat holidays are paid days off as with other employment in HK it makes no difference in the calculation so i wouldn't be underpaying my helper.

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paenme 16 yrs ago
not sure why you would categorize stat holidays as paid days but not the rest days. For a hourly worker he/she is paid for actual hours worked, whether those hours fall on a regular work day, a weekend day, or stat holiday. For a worker being paid on a fixed-period (monthly, semimonthly, etc), the annual pay does not vary whether there are 52 or 53 Sundays in that year.


If you do subtract 52 rest days per year in your formula, I guess it comes close to the same result. However 4 days per month as your original post indicated was just plain wrong. Seems you are now changing your calculations.

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