Payroll Setup > Company Setup > Formulas

This page provides more information about the use of formulas when creating custom items. To learn more about custom items, go to:

Payroll Setup > Company Setup > Custom Items

To create a formula for a custom item:

  1. Enter a Formula by starting with an “=”.
  2. You can then also enter variables, numbers and basic mathematical operators such as +, -, *, /, and ( ).

Examples of basic formulas that could be entered in the Formula field are the following:

  • = normal_rate * 40 * 25
  • = (basic_salary + normal_pay) / 4.3333 * 0.3333

Variables which can be used when creating formulas are:

  • basic_salary: Basic Salary (salaried employees)
  • normal_pay: Basic Hourly Rate (hourly paid employees)
  • normal_rate: Hourly Rate
  • shifts_worked: Number of shifts worked
  • total_income: Total income
  • min: Used to select the lowest of the values in the list provided to it
  • max: Used to select the highest of the values in the list provided to it
Example 1: Bargaining Council Levy
An employer must make a contribution that is 0.32% of the employee’s hourly pay, with a maximum contribution of R4.26. Since there is a maximum, the formula must select the lowest of option (1) which is R4.26 and option (2) which is the employee’s pay multiplied by 0.32%
= min(4.26, (normal_pay*0.0032))

Example 2: Trade Union deduction
An employee must make a contribution of 1% of their hourly pay, plus
R1.80. The minimum contribution is R9.13 and the maximum contribution is R16.73.
= min(16.73, (max(9.13, (normal_pay*0.01)))) + 1.80

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