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Average Rate for OT payment

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Requirement:

OT to be paid to employee based on rate from their quarterly average of basic salary and quarterly average of Working hours.

Condition 1: Once OT rate is formed for a quarter, it should not recalculate in retro in case of salary hike or working hrs changes.

Condition2: In case of arrear payable , those amount should be added in respective quarter and no recalculation in retro quarter months.

eg:

Jan-19 Basic salary - 50000 _ Working hours 82.80 hrs

Feb-19 Basic salary - 50000_ Working hours 82.80 hrs

Mar-19 Basic salary - 50000_ Working hours 82.80 hrs

Average calculation:

Jan+Feb+Mar salary / 3 = 50000+50000+50000 /3 = 150000/3 = 50000

Jan+Feb+Mar whr/ 3 = 82.80+82.80+82.80/3 = 248.4/3 = 82.80

OT rate of First quarter should be 50000/82.80 = 603.86 (no revision in this rate 603.86 should happen in retro)

In may19, Jun and Jul19, if employer wants to pay OT, the rate to calculate OT should be 603.86 of first quarter.

The above calculation applicable for subsequent quarter.

We tried AVERA function and its configuration, its recalculating the frozen average rate while paying arrears which should not be the case in this requirement.

Please suggest a solution.

Regards,

Velvendhan D.

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Answers (2)

Answers (2)

trinathballa
Participant
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Hi Vel,

If you consider standard way of determinig the quarterly average through AVERA function, then the values will be recalculated and it will not be a frozen average.

You've to go for PCR's where you determine the average in regular period and store in a notional wage, in retro don't process the PCR. make sure the notional wage type is passed on to the subsequent periods for evaluation.

BR,

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Awaiting for update.