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Calculation of Monthly Hours


Employees who have the 1.1 Salaried Monthly employee group assigned to them will be paid via the Ordinary Monthly Pay component opposed to Ordinary Pay. Ordinary Monthly Pay will use the average monthly hours opposed to the actual hours / days worked in a calendar month to keep an employees income consistent.

If you have a monthly Pay Group, there is a simple formula for working out how many hours employees with standard hours should be paid each month.


(Standard hours per week)   x   (Weeks per year)
                          (Months per year)



Example:


For an employee who works 40 hours per week:

40 52
    12
= 173.33 hours per month



Therefore:

45 hours per week = 195.00 hours per month.
40 hours per week = 173.33 hours per month.
37.5 hours per week = 162.50 hours per month.
30 hours per week = 130.00 hours per month.


Irrespective of how many calendar days there are in a month, the number of working days varies from month to month as well. These hours are an average, and will not match with the physical hours worked by the employee each month. Some months the employee will work less hours and some months they will work more.

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