Table of content:
⛔️ Important: You can only choose the field Currency and Calculate Monthly Salary Based On once, during the setup. We recommend careful consideration before clicking "Save".
Set up Currency & Base day for payroll calculation
Before setting up payroll and its components, we recommend checking out how payroll works to get an idea of how to fully configure payroll settings.
Navigate to Payroll > Settings
Click General to configure the following fields:
Currency: Select the currency your company currently use to pay employees
Calculate Monthly Salary Based On: this option is used to calculate prorate salaries for employees who join in the middle of your payroll cycle
Actual calendar days
Actual working days
Fixed days: 21 days, 22 days, 23 days, etc.
Click Save to confirm
Example of how prorated salary works
Pro-rata means calculating the salary that an employee can earn on a day-to-day basis when they join or leave within the month.
The following examples demonstrate 3 different methods to calculate an employee's salary based on the date he/she joins.
An employee joins on the 10th of the month
Employee’s salary is $1000.
The currency & base day for payroll calculation will apply to all employees and all pay cycles
You cannot reselect currency and base day for payroll calculation after saving