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Former Member

Proration of Basic Pay for a New Joiner with shift patern and IT0008 splits

Hi,

Problem:

While prorating /801 with the 2 or 3 splits in WPBP how can I make sure that the Incomplete month salary is not exceeding 'full month salary'.

Scenario:

Incomplete months salary = Basic Pay x Total active working days in that month

Total working days in that month

For a Part-Time New Joiner shift employee the pro-rated Basic Pay is based on calendar days and has to be changed to working days. I am using a custom operation to prorate WT /801 because the 'Total working days in the month' is required to get from IT0008-Pay Scale Group.

Example:

PXYZ where Y is the weekly working days which will be multiplied by 4 weeks

P334 = 3*4 = 12 Total working days in the month.

For this PT New Joiner shift employee(e.g. with pay scale group P334) sometimes first 2 weeks in the company is 'Non-Shift' shift pattern (i.e. 5 weekly working days) which would end up with more 'Total active working days in that month' than 'Total working days in that month'. In this case the prorated 'Incomplete month salary' would be more that the 'full month salary' and thus the decision is 'full month salary' should be paid. The shift pattern will be changed to 'Shift' after first 2 weeks. This change in shift pattern leads to 2 split in WPBP and also if there is a change in Basic Pay then there would be 3 splits in WPBP.

Example:

2 Splits:

a. PT Shift Employee joined the company with Pas Scale Group 'P334' on 03.04.2012 as shift pattern 'Non-Shift' (i.e. 5 weekly work days) from 03.04.2012 to 15.04.2012 which ends up with 9 working days excluding Off days and Rest days (i.e. Saturdays and Sundays).

b. Shift pattern changed to 'Shift' on 16.04.2012 i.e. 16.04.2012 to 31.12.9999 and thus with 3 weekly workdays(P334) from 16.04.2012 to 30.04.2012 it would be 7 working days.

Thus;

a + b = 16 Total active working days in that month

Whereas;

Total working days in that month = 12 days (3 weekly workdays x 4 weeks)

3 Splits:

c. There is a change in Basic Pay(WT 1000) i.e. from 03.04.2012 to 12.04.2012 it is $540 and from 13.04.2012 to 30.04.2012 it is $640. In this case there will be 3 splits in WPBP i.e. a, b and c. In this case the incomplete months salary is exceeding $640 and thus $640 should be paid.

WPBP Splits and /801 calculation

Split 1 - 03.04.2012 to 12.04.2012 = 8 working days = (100000 * 8) 12 = 66666.67 = (540 * 66.67) = $360

Split 2 - 13.04.2012 to 15.04.2012 = 1 working day = (100000 * 1) 12 = 8333.34 = (540 * 8.34) = $45

Spit 3 - 16.04.2012 to 30.04.2012 = 7 working days = (100000 * 7) 12 = 58333.34 = (640 * 58.34) = $373.37

Thus, by cumulating the 3 splits the 'Incomplete month salary' = $778.37 but maximum to be paid should be 'full months salary' $640.

Please kindly help to solve this problem and let me know if need clarification on the explanation above.

Thanks and Regards,

Nimit.

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1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Jan 07, 2014 at 04:54 PM

    Hi Experts,

    Please help me on this issue.

    Thanks and Regard,

    Nimit.

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