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How does the system calculate the hours of a new / terminated employee?
How does the system calculate the hours of a new / terminated employee?

Calculating Pay on Employment and Termination

Jake Ellis avatar
Written by Jake Ellis
Updated over a week ago

When an employee is employed or terminated, the system calculates the real hours worked. In this case, the system does not deduct a day but calculates the number of hours worked in the month.

This happens when an employee is employed or terminated since the month may not be worked in full, and hence his/her wage for these months is calculated on the number of hours worked.

Since the system does not deduct days not worked (and calculates the actual hours worked), an employee who is terminated on the 1st of May will get paid for 8 hours of work in May. Coincidentally, if an employee is terminated on the 3rd of February, the system will first calculate his hourly rate, then pay for the real hours worked.

Assume €2000 monthly pay, terminated on the 3rd of February:
€2000 x 12 months = €24,000 / 52 weeks / 40 hours = €11.54 per hour
Working a total of 24hours (3rd February): 24 hours x €11.54 = €276.96 pay

For monthly payrolls, if a terminated/new employee on his last/first payroll, works more hours than his monthly average hours, the system will cap to his average hours.

Example, a 40 hour per week employee who started working 2nd May 2017:
8 hours x 22 days = 176 hours
System will cap at 173.33 hours hence giving his full monthly pay.


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