QUESTION

Dear HR Practitioners,

Would like to check if your company used actual working hours per year to compute hourly rate of pay. If working hours is less than 44 hours, e.g. 43.35 hours per week, do you use basic salary x 12 months / 2254.20 hours or divide by 2288 hours?

Currently, we use 2288 hours to compute the hourly rate for a full-time staff. However, to compute hourly rate for a part-timer, do we use the actual hours of 2254.20 (43.35 hours x 52 weeks) or 2288 hours?

Would appreciate your sharing.

Thanks & Regards

IK

REPLIES & COMMENTS

REPLY 1

The hourly rate should be computed according to the total hours of work. As such, for parttime employee i.e. one who works less than 35 hours per week, for example, a part-time employee who works 30 hours per week, the computation will be: Basic Salary x 12 months/(30 hrs x 52 weeks) = hourly rate for the part-time employee

Siew Hua