Salaries can be calculated in one of two ways, depending on whether "Paid monthly" is selected.

When "Paid monthly" is selected it is assumed that employees will be paid the same amount each month (regardless of the amount of days) and that salaries should only be associated with work days of the month. Based on this we take the yearly salary and divide it by 12 to get the fixed monthly salary. Then for each month of the year we establish a day rate by dividing the fixed monthly salary by the amount of work days in that particular month. This method of calculation means that the day rate will change month to month, but will always add up to their yearly salary over 12 months.

When "Paid monthly" is not selected it is assumed that employees will be paid the same amount each work day of the year. Based on this we take the yearly salary and divide it by the amount of work days in the year to get the day rate. This method of calculation means that the monthly total will change month to month, but will always add up to their yearly salary over 12 months.

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