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Wage Definition

Monthly Basic Rate of Pay

1. The basic rate of pay includes wage adjustments and increments that an employee is entitled to under his/her contract of service, but excludes:

• Additional payments, e.g., Overtime, Bonus, Annual Wage Supplements;

• Any sum paid to the employee for reimbursement of special expenses incurred by him/her in the course of employment;

• Productivity incentive payments; and

• Any allowance however described

 

2. Basic rate of pay is used to calculate:

• Pay for work on a Rest Day or Public Holiday

• Overtime Pay

 

3. For a monthly-rated employee, the basic rate of pay for one day is calculated as follows:

 

 wage 1

 

Monthly Gross Rate of Pay

1. Refers to the total amount of money including allowances payable to an employee for working for one month, but excludes:

• Additional payments, e.g. Overtime, Bonus, Annual Wage Supplements;

• Any sum paid to the employee for reimbursement of special expenses incurred by him/her in the course of employment;

• Productivity incentive payments; and

• Travelling, food or housing allowances

 

2. The “Gross Rate of Pay” is used to calculate payment of:

• Salary in lieu of notice of termination;

• Deduction of pay for absence from work;

• Paid holidays; and

• Paid leave

 

Incomplete Monthly Wages

For the purpose of calculating salary, a ‘month’ or ‘complete month’ refers to any month in the calendar year.

 

When to prorate?

• Starts work after the first day of the month

• Leaves employment before the last day of the month

• Takes no-pay leave of one day or more during the month

 

How to prorate?

Salary payable to a monthly-rated employee for an incomplete month of work is calculated using the formula below:

wage 2