Skip to content
Log in
  • There are no suggestions because the search field is empty.

Salary pay calculation

Summary

Salary pay in a pay cycle is calculated using annual salary, Worked/Working Days, Salary Basis, and the pay schedule Pro Rata Rule. You can review and edit Worked Days before processing the pay run.

Holidays Are Paid, Day Offs Are Paid, and unpaid leave affect the days used to calculate salary for the period.

In this article

  • Before you begin
  • Check the schedule Pro Rata Rule
  • Opening the pay cycle Income tab
  • Review or edit Worked Days
  • How salary for the period is built
  • Frequently Asked Questions (FAQ)

Before you begin

You must have an active Payroll add-on to access and use Payroll features.

You need:

  • Company Money access
  • View Pay Schedules permission
  • Start Payrun permission

To change the Pro Rata Rule, you need Payroll admin access to Admin > Payroll > Schedule.

This article applies to employees whose employment Pay Type is not Hourly. Hourly employees use Payrate and Total Worked Hours instead.

Set the Pro Rata Rule on the pay schedule before relying on salary calculations. The selected rule applies to the whole schedule.

Make sure working patterns, holidays, days off, and approved time off are correct for the pay period.

Check the schedule Pro Rata Rule

Log in to Plumm and go to Admin > Payroll.

Open the required location, then select Schedule.

Pro Rata Rule is a required dropdown on the schedule.

Available options are:

  • Working Days In Period – Salary for Period x Days Worked in Period
  • 260 Rule – Annual Salary / 260 x Days Worked in Period
  • 208 Rule – Annual Salary / 208 x Days Worked in Period
  • 365 Rule – Annual Salary / 365 x Days Worked in Period (366 days for leap year)

Also configure:

  • Holidays Are Paid
  • Day Offs Are Paid

If you select the 365 Rule, Holidays Are Paid and Day Offs Are Paid are automatically ticked and locked. You cannot untick them while the 365 Rule is selected.

Select Confirm to save the schedule.

These settings are used when the pay cycle calculates Working Days and Worked Days.

Opening the pay cycle Income tab

Log in to Plumm and open the 9-dot menu.

Under Money, select Company Money.

Open an Active location and go to Pay Schedules.

Open an Active schedule, then select Start Pay run or Continue Pay run.

If the banner displays We noticed there's been some changes to this pay cycle, select Recalculate.

Open Salaries > Income.

The Income grid includes:

  • Employee
  • Salary Basis
  • Worked/Working Days
  • Salary
  • Current Cycle Salary
  • Other Income
  • Taxable Other Income
  • Non Taxable Other Income
  • Total Income

Salary Basis

Displays Monthly, Weekly, or Biweekly based on the person's salary pay type.

Worked/Working Days

Displays worked units against working units for the period.

For example:

20/22

Salary

Displays the period salary calculated from annual salary and Salary Basis:

  • Monthly – annual salary ÷ 12
  • Weekly – annual salary ÷ 52
  • Biweekly – annual salary ÷ 26

Current Cycle Salary

Displays the salary for the current cycle after applying the Pro Rata Rule and Worked Days.

Review or edit Worked Days

Open the required employee from the Income grid.

The sidebar displays Salary and Worked Days.

For salary employees, Worked Days is enabled.

Change Worked Days when you need to override the calculated figure for the current pay cycle.

Select Save to apply the change.

If an invalid value is entered, Plumm displays:

Days Worked must be a positive number.

If Worked Days have already been saved for the cycle, Payroll uses the saved figures instead of recalculating them from attendance and leave.

For hourly employees, Worked Days is disabled. Hourly employees use a different pay calculation.

If an employee has more than one salary during the period, Payroll can divide the period into separate salary slices. Each slice has its own salary and Worked Days.

How salary for the period is built

Payroll first calculates Working Days and Worked Days for the pay cycle.

The calculation uses:

  • Location
  • Working pattern
  • Holidays Are Paid
  • Day Offs Are Paid
  • Pro Rata Rule

Working Days

Working Days represents the payable working days in the period.

Worked Days

Worked Days represents how many of those days are treated as worked.

Unpaid leave reduces Worked Days.

Worked Days is never stored as less than zero.

Payroll then uses these values to calculate Current Cycle Salary.

Working Days In Period

If the Pro Rata Rule is Working Days In Period, or the rule is blank, the calculation depends on Salary Basis.

For Monthly salary:

Annual Salary ÷ 12 × Worked Days ÷ Working Days

For Weekly salary:

Annual Salary ÷ 52 × Worked Days ÷ Working Days

For Biweekly salary:

Annual Salary ÷ 26 × Worked Days ÷ Working Days

260 Rule

The schedule displays:

260 Rule Annual Salary / 260 x Days Worked in Period

Payroll calculates salary using annual salary and Days Worked in Period under the 260 Rule.

208 Rule

The schedule displays:

208 Rule Annual Salary / 208 x Days Worked in Period

Payroll calculates salary using annual salary and Days Worked in Period under the 208 Rule.

365 Rule

The schedule displays:

365 Rule Annual Salary / 365 x Days Worked in Period (366 days for leap year)

When this rule is selected, Holidays Are Paid and Day Offs Are Paid remain enabled.

Payroll uses 365 days, or 366 days in a leap year, when applying this rule.

Salary changes during the period

If an employee's salary changes during the pay period, Payroll calculates each salary slice using the same Pro Rata Rule and then adds the calculated amounts together.

The Income tab still displays one Worked/Working Days figure and one Current Cycle Salary for the employee.

Working Days is zero

If Working Days is zero, Current Cycle Salary is zero.

Minimum pay

Employees on minimum pay receive the period salary as current cycle income without the Worked Days split.

Overtime

Overtime does not change Working Days.

Overtime is added separately as other income.

Statutory pay, other income, and deductions are applied after the salary figure is calculated.

Frequently Asked Questions (FAQ)

  • Can I see daily hours on Company Money?
    No. Company Money displays Worked/Working Days on the Income tab. Daily clock-in details are available in Attendance.
  • What happens if a person takes unpaid leave?
    Unpaid leave reduces payable Worked Days, which reduces the Current Cycle Salary for that pay cycle.
  • Why are Holidays Are Paid and Day Offs Are Paid locked?
    The 365 Rule is selected as the Pro Rata Rule. Both options remain ticked and disabled until you select a different rule.
  • Can I edit Worked Days after the pay run is processed?
    Not on a Completed cycle. Correct the source data, then undo the pay run if you have Undo Payrun permission and process it again. Undo requires a replacement FPS.
  • Does a mid-period salary change create two rows?
    No. Payroll splits the period behind the scenes, calculates the salary slices, and combines them into one Current Cycle Salary.
  • What if Worked Days looks wrong?
    Check the employee's attendance, working pattern, holidays, days off, and unpaid leave for the period. Recalculate the pay cycle from Updates, then edit Worked Days from the Income sidebar if an override is required for the current cycle.