Calculating the pay rates
Basic Rate of Pay
| How it is used? | For calculating pay for work on a rest day or public holiday |
| What is included? | Wage adjustments and increments that an Employee is entitled to under a contract of service |
| What is excluded? | • Overtime payments, bonus payments and annual wage supplements • Reimbursement of special expenses incurred in the course of employment • Productivity incentive payments • Any allowance |
Formula to calculate:
Gross Rate of Pay
| How it is used? | For calculating: • Salary in lieu of notice of termination of service • Salary deduction for unauthorised absence from work • Paid public holidays • Approved paid leave, including annual leave, hospitalisation leave and maternity leave |
| What is included? | Allowances that an Employee is entitled to under a contract of service |
| What is excluded? | Overtime payments, bonus payments and annual wage supplements • Reimbursement of special expenses incurred in the course of employment • Productivity incentive payments • Travel, food and housing allowances |
Formula to calculate:
Overtime Pay
Overtime work is all work in excess of the normal hours of work (excluding breaks). An Employee can claim overtime if he/she is:
- A non-workman earning up to $2,600
- A workman earning up to $4,500
For overtime work, the Employer must pay at least 1.5 times the hourly basic rate of pay. Payment must be made within 14 days after the last day of the salary period.
Formula to calculate:
How is the hourly basic rate of pay calculated?
| Category of Employee | Hourly basic rate of pay is |
|---|---|
| Monthly-rated Employee | (12 x Monthly basic rate of pay) / (52 x 44) |
| Daily-rated Employee | Daily pay at the basic rate / Working hours per day |
| Piece-rated Employee | Total weekly pay at the basic rate of pay / Total number of hours worked in the week |
For monthly-rated employees only: If the employee is covered under Part IV, we must calculate by 44 hours.
Pay for work on a rest day
The compensation is 2 days Basic Rate of Pay.
Formula to calculate:
Pay for work on a public holiday
If an Employee works on a public holiday, by default, the Employer should pay the Employee an additional day's pay. Alternatively, by mutual agreement, the Employee can get one of the following:
- A public holiday in lieu; or
- Time off in lieu (only for employees not covered under Part IV of Employment Act)
| If Employee works on a public holiday that falls on | Employee is entitled to the following |
|---|---|
| A working day Formula: 1 day gross rate + 1 day basic | • An extra day’s salary at the basic rate of pay • The gross rate of pay for that holiday • Overtime pay if the Employee works beyond the normal hours of work |
| A non-working day (e.g. Saturday for employees on a 5-day work week) Formula: 1 day gross rate | • Overtime pay for extra hours worked on a Saturday • One extra day’s salary at the gross rate of pay or another day off for the public holiday |
| A rest day Formula: 1 day gross + 2 days basic | • Payment for work done on a rest day • Overtime pay if the Employee works beyond the normal hours of work • The next working day will be a paid holiday instead. |
Part-time employees are also entitled to paid public holidays. The public holiday pay should be pro-rated based on the number of hours of work.
Incomplete Month of Work
Where an Employee:
- Starts work after the first day of the month
- Leaves employment before the last day of the month
- Takes no-pay leave of one or more days during the month
- Is on reservist training during the month
For monthly-rated full-time Employee, the formula to calculate salary for an incomplete month of work (pro-rated pay) is:
Example of calculating a pay rate
Sim worked a 5½-day week from Monday to Saturday. Saturday was a 4-hour work day.
Sim's monthly basic rate of pay was $700 and his monthly gross rate of pay was $800.
Sim was asked to work on a Sunday during a Public Holiday. His salary for the Public Holiday should be calculated as follows:
