Adding a new user: hourly pay and percentage rule
The steps when an hourly paid employee is added, with vacation under the percentage rule.
An hourly paid employee is added like any other user, but two parts of the employment contract are different: the salary and the vacation.
What this step covers
- Add the user. The account and the personal details, as usual. See Add a new user.
- General settings, salary. The employment contract carries the salary. See The employment contract: Salary.
- Add hourly pay. The hourly pay is set as a salary line on the contract instead of a monthly salary. The time that is reported is what gives salary, so an hourly paid employee who does not report gets no salary.
- Add vacation under the percentage rule. The vacation model is set on the contract.
The percentage rule
For hourly paid employees the percentage rule is normally used. This means that vacation pay is calculated as a percentage of the salary that has been paid out, instead of as paid vacation days.
That makes one field on the payroll items decisive: Basic data for holiday pay as per the percentage rule decides whether the amount from an item is counted in the basis. If it is missed on an item that is used, the vacation pay will be too low, and the error only shows when the vacation liability is reconciled.
See Payroll items for the field, and The employment contract: Vacation for the vacation models.