**Overview**

Basic Hours are the number of hours worked by an employee within the payroll period.

**Contents**

**Calculation**

*Basic Hours are calculated as follows: *

**Full time:**

*Monthly: *

A full time employee's monthly payslip is worked out on 173.3333 hours. This amount of basic hours is irrelevant to the month's length (i.e. February has less days than March, but employees are still paid for 173.3333 hours for both months).

These hours are worked out as follows:

Full time schedule = 40 hours per week. There are 52 weeks in a year. 40 hours * 52 = 2080 hours.

2080 hours/12 months = 173.3333 hours per month.

*Four-weekly:*

In the case of a four-weekly payroll, the calculation is similar:

52 weeks/4 weeks = 13 payroll periods

2080 hours/13 payroll periods = 160 hours per payroll period for full time employees.

*Bi-weekly:*

In the case of a bi-weekly payroll, the calculation is similar:

52 weeks/2 weeks = 26 payroll periods

2080 hours/26 payroll periods = 80 hours per payroll period for full time employees.

**Part time: **

*Monthly: *

A part time employee's monthly payslip is worked out on 173.3333 hours divide by 2 = 86.667. This is for part time employees on a 20 hour per week schedule. For other schedules (such as 15 hours per week, etc, the calculation is done prorata).

*Four-weekly:*

In the case of a four-weekly payroll, the calculation is similar:

2080 hours/2/13 payroll periods = 80 hours per payroll period for part time (20 hour/week) employees.

*Bi-weekly:*

In the case of a bi-weekly payroll, the calculation is similar:

52 weeks/2 weeks = 26 payroll periods

2080 hours/2/26 payroll periods = 40 hours per payroll period for part time (20 hour/week) employees.

**Casual workers/Non-fixed employees**

Hours worked are inputted manually in payslip calculation in the *Basic Hours field*.

Any additional hours worked, for which the employee will be paid, should be added as **Extra basic hours**.

**Calculating partial months**

When an employee did not work the full month (i.e. was engaged later during the month or terminated before the end of the month, the calculation used is:

*(Number of days worked * (Number of hours per week/number of days they can work on)*

**Calculating a full month of leave**

In the case where a full month of leave is booked (that is, each individual day of the month has been booked, the number of these hours might amount to more or less than the average of 173.33 hours.

For example:

Booking 1st March - 31st March - 22 working days * 8 hours/day = 176 hours worked.

However when payroll is calculated on a monthly basis, the hours reported per month is the average of 173.33 hours.

In such a case and in the inverse, where the month would include less hours, such as in February, the payslip Basic Hours are automatically “topped up/down” to match the 173.33 hours, and therefore the Basic Amount would remain constant throughout.