ZipHR enables you to define employee wage payment according to your specific country, company and employee situation.  Follow these steps to get your employee wages set right!

Basic Wage

Employee Profile > Employment Info > Payroll > Salary

• Basic Wage - input the regular wage employee receives for the specified Wage Period
• Wage Period - specify whether the Basic Wage is a monthly, daily or hourly rate
• Work Days/Week - enter how many days the employee is expected to work per week
• Expected Work Hours/Day - enter how many hours the employee is expected to work per day
• Monthly Wage Basis
  • EEMR (Estimated Equivalent Monthly Rate) - applies the formula below to estimate the average number of working days per month
    EEMR = 365 day - (52 weeks * (7 days - Work Days/Week)) / 12 months 
  • Fixed Monthly Days - allows user to define the fixed number of working days per month.  

ZipHR will now automatically calculate the appropriate monthly, daily or hourly wage rates for the employee based on above settings. 

For example, if employee is paid a monthly Basic Wage of 27,000 and the Monthly Wage Basis is 27 days, their daily rate will be 1,000.  If the employee's Expected Work Hours/Day are 8 hours, then their hourly rate is calculated as 1,000 / 8 hours = 125 per hour.   

Tip - define employee Basic Wage in bulk using the Bulk Import Employee Details worksheet, or the Profile Manager. 

Gross Wages

Settings > Payroll > Other Payment Types

Gross Wages are an employee's Basic Wage plus any other payments that may be considered as part of their regular wages, for instance any fixed allowances or commissions.  

The Gross Wage may be applied when compensating employees for certain activities depending on government regulations and company policy.  For instance, you may pay for Maternity Leave based on Gross Wage versus Basic Wage.

In the Other Payment Types settings you can configure exactly what kind of payments should be included to gross wage calculations.