Skip to content

Formulas

Basic Formulas

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

To create a formula for a custom item, you should have already selected the type of custom item, given it a name, and selected “Formula” from the Input Type drop-down menu. An additional field will then appear:

  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
  • = max(0, 300 - mtd_before_current('raf_contribution'))

Variables and functions which can be used when creating formulas are:

Variables

  • basic_salary: Basic Salary (salaried employees)
  • normal_pay: Basic Hourly Pay (hourly paid employees)
  • normal_rate: Hourly Rate
  • shifts_worked: Number of shifts worked
  • total_income: Total income
  • periods_in_year
  • hourly_paid
  • weeks
  • default_days_worked: For monthly employees, equal to their full days per week (Regular Hours) x 4.333. For weekly paid employees, full days per week (Regular Hours).
  • days_with_leave_for_system_type:
    • For example: = normal_rate * days_with_leave_for_system_type(‘unpaid’). This would be the number of days taken with unpaid leave. Note: This considers days with unpaid leave, not days of unpaid leave.
  • raf_contribution: The total amount contributed to a Retirement Annuity Fund – to be used with the mtd_before_current function. (It includes the contributions of both the employee and employer.)

Functions

  • min: Used to select the lowest of the values in the list provided to it.
    • For example: = min(50,100) = 50
  • max: Used to select the highest of the values in the list provided to it.
    • For example: = max(50,100) = 100
  • round: The number in brackets will be rounded up or down depending on the decimal. This functions as per the regular rounding of numbers.
    • For example: = round(1.1) = 1, and = round(1.5) = 2
  • ceiling: Rounds up the number in brackets to the nearest whole number.
    • For example: = ceiling(1.1) = 2
  • floor: Rounds down the number in brackets to the nearest whole number. The number will always be rounded down regardless of the decimal point.
    • For example: = floor(1.1) = 1, and = floor(2.7) = 2

  • mtd_before_current: This function accepts a string argument representing an account name, e.g. 'raf_contribution'. It will return the month-to-date value of the given account – but excluding the value for the current payslip.

    • For example: = max(0, 300 - mtd_before_current('raf_contribution')). When used in the Amount field, this will result in a R300 RAF Deduction on the first payslip in any given month for non-monthly employees. Note that you can use this formula when adding the Retirement Annuity Fund system item to the employee’s profile.

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. Before the R1.80 is added, 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

“IF” Statements

General IF statements

The IF function returns one value if the specified condition is true and another if it's false. The IF statement is also known as a logical formula: If, then, else. If something is true, then do this; else/otherwise, do that.

The IF statement works as follows:

if (condition, true statement, false statement)

For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee’s salary is greater than R10 000, then the contribution is R100, but if the employees earns less than R10 000, then the contribution is R80.

The formula will be written as:

= if (basic_salary>10000, 100, 80)

This means that if the basic salary is greater than 10 000, the result will be 100, and if it’s less, it will be 80.

Nested IF statements

A nested IF statement is an IF statement within an IF statement. It works as follows:

if (condition, true statement, if (condition, true statement, false statement))

For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee’s salary is greater than R10 000, then the contribution is R100, but if the employees earns between R5 000 and R10 000, then the contribution is R80, and if they earn less than R5 000, it is R60.

The formula will be written as follows:

= if (basic_salary>10000, 100, if (basic_salary<5000, 60, 80))

This means that if the basic_salary is greater than 10 000, the result will be 100. Otherwise, if the salary is less than 5 000, the result will be 60; otherwise, it will be 80.