Gender pay gap calculation for employees with variable hours

Before you start, you must have a pay code set for ordinary pay and bonus pay. For more information, go to Pay Code Sets.

For employees who work variable or zero hours, weekly hours are calculated as an average.

To allow payroll to calculate this automatically:

  1. Set the employee’s working pattern to 0 hours (Total Hours = 0).
  2. In Regular Pay, select Basis, then select Based on an Hourly Rate.

If these settings are set, Staffology Payroll uses the employee’s payroll history under the Ordinary Pay code to calculate the total hours worked and generate an average weekly hours figure:

  • Monthly employees: 3 months history.
  • Weekly employees: 12 weeks history.
  • Fortnightly employees: 6 periods of a fortnight history.
  • Four weekly employees: 3 periods of 4 weekly history.

For more information, go to our examples.

Employee does not have enough history

The average hours is based on, the number of hours worked, and divided by the periods available since the employee started.

If the employee started 3 weeks ago and is paid weekly, the calculation is based on 3 weeks average.

Employee has a period of zero pay in the history

This period is skipped and further history pay periods are used.

Employee changes working pattern

The average hours are based on the working pattern in place on the snapshot date.

Term time only employees

If the employees contracted weeks are less than the full time contracted weeks the calculation is based on the total hours in the working pattern multiplied by the contracted weeks, and divided by 52.18 (exact numbers in a year).

If an employee has multiple roles, both are added together, then the calculation is done.

Example: Weekly

  • Snapshot date of 31st March.
  • Employee worked:
    • March: 60 hours - 1-4 weeks.
    • February: 70 hours - 5-8 weeks.
    • January: 20 hours - 9-12 weeks.
  • Total: 150 hours.

The total hours for the 12 weeks is divided by the number of weeks used (maximum 12 weeks).

Calculation example: 150/12 =12.5 hours each week

Example: Monthly

  • Snapshot date: 31st March.
  • Employee worked:
    • March: 60 hours.
    • February: 70 hours.
    • January: 20 hours.
  • Total: 150 hours.

The total hours is divided by the number of periods used (maximum 3 months), multiplied by 12 and divided by 52.18.

Calculation example: 150/3 = 50 x 12 = 600 / 52.18 = 11.50 hours each week

Example: Fortnightly

  • Snapshot date: 31st March.
  • Employee worked:
    • March: 60 hours -2 fortnightly payruns.
    • February: 70 hours - 2 fortnightly payruns.
    • January: 50 hours - 2 fortnightly payruns.
  • Total: 180 hours.

The total hours is divided by the number of periods used (maximum 6 fortnights), then divided by 2.

Calculation Example: 180/6 = 30 / 2 = 15.00 hours each week.

Example: 4 weekly

  • Snapshot date: 5th April.
  • Employee worked:
    • March: 90 hours.
    • February: 50 hours.
    • January: 100 hours.
  • Total: 150 hours

The total hours is divided by the number of periods used (maximum three 4 weekly periods), and divided by 4.

Calculation Example: 250 / 3 = 83.33 / 4 = 20.83 hours each week.