How can i treat a mid-month salary increase?
Scenario:
Employee receives $1,200 as monthly gross pay but receives a salary increase to $1,800 effective 20th of the month.
How do i process the salary such that Payslip is calculated based on $1,200 gross pay from 1st - 19th of the month and based on $1,800 gross pay from 20th - 30th of the month?
Any help will be appreciated.
Why don’t you use “additional salary” for this month and assign a new salary structure starting next month.
@asoral thanks for the suggestion but this won’t work for me. First, i have to manually calculate employee earning to determine the difference for both periods (1st - 19th and 20th - 30th). Secondly, the tax deduction, pension deduction and other deduction formula will apply to the original salary structure amount regardless of the override amount applied by additional salary. This will mean my payroll entry calculation will be wrong.
I have attempted this as a workaround and while the first issue is manageable, the 2nd issue cannot be overlooked as the deductions calculation cannot be manipulated and must reflect total deductibe from employee gross pay.
At this point I have to mark this post as a bug as the formula for deduction ignores the figure overwritten by additional salary and still recognizes the original amount.
If the base pay is $1,000 and an additional salary of $1,800 was applied with the condition to overwrite salary structure amount, the 10% deduction applied on the base pay should take into account the new base pay which is $1,800. However it still calculates based on the original base pay of $1,000 leaving $800 unaccounted for. I hope this can be looked into and fixed