Payroll Concepts > Pay-Related Calculations > Salary Calculations

SimplePay performs basic salary calculations automatically in line with the standard EA rules when you enter the relevant hours for your employees. More information on capturing employee hours can be found in the following sections:

SimplePay does not, however, calculate overtime, rest day or public holiday pay automatically. In order to record these types of pay, you have to create custom items. For more information about how to create custom items, please refer to:

Overtime

Overtime work is all work in excess of the normal hours of work (excluding breaks). For overtime work, you must pay employees at least 1.5 times their hourly basic rate of pay. Payment must be made within 14 days after the last day of the salary period.

Employees can only claim overtime if their salary level is below a certain maximum. Different maximums apply to workmen and non-workmen. In addition, the overtime rate payable for non-workmen is subject to monthly or hourly caps. For more information about these aspects, please visit the MOM website.

Rest Days

A rest day comprises 1 whole day (midnight to midnight) and is not a paid day. You, as the employer, determine the rest day, which can be on a Sunday or any other day. If the rest day is not a Sunday, you should prepare a monthly roster and inform your employees of the rest days before the start of each month.

You cannot compel an employee to work on a rest day, unless under exceptional circumstances. Employees might sometimes request to work on a rest day. When calculating the payment for work on a rest day, different rules apply when work is done at the employer’s request and when it’s done at the employee’s request.

Also, as with overtime pay, there are different maximums applicable to workmen and non-workmen. For more information about these rest day pay aspects, please visit the MOM website.

Public Holidays

Employees are entitled to their gross rate of pay on a public holiday if:

  • They were not absent on the working day immediately before or after a holiday without consent or a reasonable excuse; or
  • They were on authorised leave (e.g. sick leave, annual leave, unpaid leave) on the day immediately before or after a holiday.

Employees are not entitled to holiday pay if the holiday falls on a day when they are on approved unpaid leave.

Public Holidays on Off Days

If the holiday falls on a non-working day or off day, you need to do one of the following:

  • Compensate employees with an extra day’s pay in lieu of that holiday; or
  • Give them another day off as a holiday.

Working on a Public Holiday

If employees work on a public holiday, different leave pay rules will be applied depending on whether the public holiday falls on a working day, a rest day or a non-working day. For more information about this and other public holiday pay aspects, please visit the MOM website.

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