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How are Days Computed for Compressed Work Week?

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Compressed Work Week pertains to the shortening of a six-day workweek into five days. With this, employees are able to accomplish the weekly required hours by working longer days. For a quick refresher on Compressed Work Week, here's an article that may help: Compressed Work Week--How Does It Work?

Once the Compressed Work Week is set up on the Work Schedule tab of their Employee Profiles, this will also impact the attendance that will reflect on the Attendance Report. For employees that will be working with this schedule type, the days will be equivalent to 1.2 days. How was this derived, you ask?

Initially, an employee is expected to work for 6 days throughout the week but since their schedule is compressed into 5, the 6th day will be divided among the remaining working days: 

6 days (original schedule) / 5 days (compressed schedule) = 1.2 days

As such, when you generate the Attendance Report for one day, it would read as follows:

2020-03-03_22_20_29-Window.png

And if they don't report to work for the day: 

2020-03-03_22_21_29-Window.png

Additionally, for half-day leaves, it would be tagged as 0.6 days as this is half of the amount for one day. 

Now, you're probably wondering how this will translate come payroll-processing, right? Well, like always, we got you covered!

For Daily-Paid Employees, this would not be much of mind as their basic salary is based on their Total Hours Worked rather than the number of days they were tagged as absent/present. 

As for Monthly-Paid Employees, since their attendance is tagged as 1.2 days, the computation would equate to 1.2 days.

To paint a clearer picture, here are sample scenarios and their respective computations for reference. 

Daily-Paid Employees

Payroll Run Type/Attendance No Absences Days Absent: 1
  • Daily Rate: 537
  • Work Days Per Year: 313
  • Payroll Period: Weekly

Basic Salary = Hourly Rate x Total Hours Worked for the cut-off period

Daily Rate: 537

Total Hours Worked for the cut-off period: 43 (48 less the 1-hour break per day)

Basic Salary = 67.125 x 43

Basic Salary = 2,886.375

Basic Salary = Hourly Rate x Total Hours Worked for the cut-off period

Daily Rate: 537

Total Hours Worked for the cut-off period: 36*

Basic Salary = 67.125  x 36

Basic Salary = 2,416.5‬0

*Breakdown of Total Hours Worked for 1-day Absent column

  • Monday to Thursday - (10 total required hours x 4 working days) - (1-hour break x 4 working days)
  • Friday - absent

Monthly-Paid Employees (Semi-Monthly)

Payroll Run Type/Attendance No Absences Days Absent: 1
  • Basic Salary: 15,000
  • Work Days Per Year: 313
  • Payroll Period: Semi-Monthly

Basic Salary = Half of basic salary - (absent + late/undertime)

Daily Rate: 689.66

Days Absent: 0 

Basic Salary =  7,500.00

Basic Salary = Salary - (absent + late/undertime)

Daily Rate: 689.66

Days Absent: 1.2

Basic Salary = 7,500 - (689.66 Daily Rate x 1.2 Days absent)

Basic Salary = 6,672.41

Please note that the Compressed Workweek option only applied to Normal Shift and Supervisor Shift schedule types. 

Pretty simple, right? 

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