How is pay for work on a rest day or public holiday calculated?

Pay for work on a rest day or public holiday is calculated based on a number of factors including who requested the work to be completed, the number of hours worked and whether the employee is covered by the Employment Act. The rules and calculations applied within they system are outlined below.

Rest Day

Employees are entitled to one rest day each week. If an employee works on a rest day they are entitled to receive pay for this work. The system will only calculate and pay an employee for work completed on a rest day if the ‘Covered by Employment Act’ setting is set to ‘Yes’ within the employee file

AND

Either the ‘Rest Day (Employee)’ or ‘Rest Day (Employer)’ work type or pay category are selected in the timesheet and/or pay run. The system will not automatically identify the rest day for employees, and therefore cannot automatically pay them for this work.

If the employee requests to work on the rest day, the 'Rest Day (Employee)' work type/pay category should be selected. The pay calculation will be as follows when this work type is selected:

Hours Worked

Pay Received

= or < ½ normal work hours

½ days pay

> ½ but < normal work hours

1 days pay

> normal work hours

1 days pay + overtime for hours exceeding normal work hours

 

If the employer requests the employee work on the rest day, the 'Rest Day (Employer)' work type/pay category should be selected. The pay calculation will be as follows when this work type is selected:

Hours Worked

Pay Received

= or < ½ normal work hours

1 days pay

> ½ but < normal work hours

2 days pay

> normal work hours

2 days pay + overtime for hours exceeding normal work hours


If the employee works on a part time basis, the calculation is slightly different and overtime pay is only received once the hours worked exceed the full time equivalent. 

The calculation used for part time employees working when 'Rest Day (Employee)' has been selected is as follows:

Hours Worked

 Pay Received

= or < ½ their normal work hours

 ½ days pay

> ½ but < their normal work hours

 1 days pay

> their normal work hours but < hours worked by full time employee

1 days pay + base rate of pay for hours up to full time equivalent

> hours worked by full time employee

 1 days pay + base rate of pay for hours up to full time equivalent + overtime for hours exceeding full time hours

 

The calculation used for part time employees working when 'Rest Day (Employer)' has been selected is as follows:

Hours Worked

Pay Received

= or < ½ their normal work hours

1 days pay

> ½ but < their normal work hours

2 days pay

> their normal work hours but < hours worked by full time employee

2 days pay + base rate of pay for hours up to full time equivalent

> hours worked by full time employee

2 days pay + base rate of pay for hours up to full time equivalent + overtime for hours exceeding full time hours

 

Note: where an employee has advanced work hours set up, the average daily rate will be used as the 'days pay'. Example: employee works 4 days a week (Mon - Thur), works 36 hours across these days (8, 12, 9, 7) and earns $4000 per month. The 'daily standard rate' used for rest day pay will be calculated as follows:

(12 x Monthly base rate of pay) / (52 x Average number of work days in a week) 

(12 X 4000) / (52 X 4)

= $230.77

 

If for some reason the employee requests to work 5 hours on a rest day which fell on a Tuesday, where they would normally work 12 hours, the 1/2 daily rate ($115.39) will apply for the 5 hours.

If there were no advanced advanced hours saved for the day where the rest day falls, the businesses standard hours will be used (generally 9 hours). If this was the case, the full days pay ($230.77) will apply for the 5 hours worked.

 

In a pay run, if the work was submitted via a timesheet, the earnings line will display with a calculated value (if the employee is entitled to pay). If the earnings line is manually added in the pay run, the pay category will need to be selected and the number of hours worked entered. The 'Rate (per hour)' will show $0 until the employee's pay details have been saved. Once 'Save' has been selected the pay will calculate and display the calculated hourly rate for the rest day pay.

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The calculation for the hourly rate for the work on the rest day is shown in the context panel within the ‘?’ symbol against the rest day pay earnings line.

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The context panel displays all data used within the calculation as well as the calculation for the data fields (where applicable). Select the '?' to view the calculation used.

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The following calculations are used for the context panel and rate:

Average days worked per week - number of days worked in the month * 12 / 52. The value is rounded to the nearest half number e.g. 3.2 days would be rounded to 3 days and 4.4 would be rounded to 4.5 days.

Daily rate of pay - 12 * base rate of pay / 52 * average days worked per week

 

If the employee works more than their daily hours, overtime applies to the excess hours. An additional row will show in the context panel for the overtime. For part time employees, the full time working hours will also show to easily identify how many overtime hours have been included.

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If the employee is not covered by the Employment Act i.e. an option other than 'Yes' is selected in their 'Covered by Employment Act' setting, the 'Rate' will continue to display $0 after the employee has been saved. To confirm this the case, select the '?' against the 'Rate'. The context panel will state the employee is not covered by the Employment Act.

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The calculated rate can be overridden by selecting the ‘Override’ option. This will allow a value to be entered into the 'Rate' field. The hours X rate calculation will then apply without the above mentioned logic.

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Public Holiday

Employees are entitled to pay for hours worked on a public holiday if they are covered by the Employment Act. For a normal public holiday where the employee is not required to work, their regular salary already includes the gross pay for the public holiday. If the employee works on the public holiday they are entitled to an additional days pay at the base rate.  Employees are paid for their normal hours for the day, irrelevant of the number of hours worked.

The system will calculate and pay a full time employee for work completed on a public holiday if the ‘Covered by Employment Act’ setting is set to ‘Yes’ or 'Yes, excluding part 4' within the employee file

AND

the ‘Public Holiday’ work type or pay category are selected in the timesheet and/or pay run.

If the employee works on a part time basis, the ‘Covered by Employment Act’ setting is not considered at all for the public holiday pay. The reason for this is that part time employees are entitled to pay for a public holiday, even if the public holiday falls on a non working day. This pay is not automatically added as part of the monthly pay in case the employer and employee have another arrangement.

The system will not calculate pay employees without the work type/pay category being selected.

If the work was submitted via a timesheet, the earnings line will display with a calculated value in the pay run (if the employee is entitled to pay). If the earnings line is manually added in the pay run, the pay category will need to be selected and the number days (units) entered. The 'Rate (per day)' will show $0 until the employee's pay details have been saved. Once 'Save' has been selected the pay will calculate and display the calculated daily rate for the public holiday pay.

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The calculation for the daily rate for the work on the public holiday is shown in the context panel within the ‘?’ symbol against the rest day pay earnings line.

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The context panel displays all data used within the calculation as well as the calculation for the data fields (where applicable). Select the '?' to view the calculation used.

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The following calculations are used for the context panel and rate:

Average days worked per week - number of days worked in the month * 12 / 52. The value is rounded to the nearest half number e.g. 3.2 days would be rounded to 3 days and 4.4 would be rounded to 4.5 days.

Daily rate of pay (for full time employee) - 12 * base rate of pay / 52 * average days worked per week

For a part time employee it is their hours X hourly rate for the day.

 

If the employee works more than their daily hours and overtime is being paid, the overtime will need to be manually added as an earnings line for the relevant number of hours. It will not be included as part of the calculated public holiday pay. 

If the employee works on a full time basis and is not covered by the Employment Act i.e. 'No' is selected in their 'Covered by Employment Act' setting, the 'Rate' will continue to display $0 after the employee has been saved. To confirm this the case, select the '?' against the 'Rate'. The context panel will state the employee is not covered by the Employment Act.

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The calculated rate can be overridden by selecting the ‘Override’ option. This will allow a value to be entered into the 'Rate' field. The days X rate calculation will then apply without the above mentioned logic.

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If you have any questions or feedback, please let us know via support@yourpayroll.io.

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