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Set up day rate calculation methods

Configure a company’s day rate calculation method.

Debs avatar
Written by Debs
Updated over 7 months ago

In Paycircle, you can set day rate methods at both a company and individual level, to give you the flexibility you need to meet the demands of each payroll.

Set a company's day rate calculation method

By default, companies will be set to use the 260 working days per year method. To select a different day rate calculation method, follow the steps below:

  1. As a Paycircle administrator, click Settings then click Payroll Settings.

  2. Navigate to the Work patterns section then next to Day rate calculation method, click Edit.

  3. Select one of the following methods:

  • 253 working days per year

  • 260 working days per year

  • 261 working days per year

  • 365 days per year

  • 366 days per year

  • Calendar days

  • Use work pattern

  1. Click Save.

Set a team member’s day rate calculation method

The team members who are paid a salary have the Not set default method assigned unless you change it.

To set a day rate calculation method for a team member, follow the steps below:

  1. Click Team then select the relevant team member.

  2. Click Information then navigate to the Pay information section.

  3. Click Edit.

  4. In the Day rate calculation method, select one of the following methods:

  • 253 working days per year

  • 260 working days per year

  • 261 working days per year

  • 365 days per year

  • 366 days per year

  • Calendar days

  • Not set: The day rate depends on their work pattern. For team members whose work patterns have five working days a week, their day rates are based on the setting selected at the company level. For all other work patterns, team members have their day rate calculated in the same way as the Use work pattern method.

  • Use work pattern: The day rate is calculated using their normal salary per period, and dividing it by the number of working days in the period, based on their work pattern.

Additional information regarding rolling back

When using the 253, 260 or 261 method, and there are 23 working days in the month, one day will be deducted from proration calculations. For a salary change, this day will be deducted off the latter of the two salaries in the period.

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