Formulas

Formulas can be used to do calculations when item amounts are subject to change and/or depend on other amounts or payslip periods. They allow you to automate and customise how values are determined within the system. Formulas can be applied to both custom and system items.

There are two main ways in which formulas can be used:

As a fixed formula for a custom item

You can set up a custom item that uses a fixed formula, as follows:

1. Go to Settings > Custom Items > Add Custom Item.
2. Select the type. More information is available here.

3. Enter a Name, and select "Formula" as the Input Type.

   Applicable custom item types

   The "Formula" Input Type is available only for custom deductions, benefits, and employer contributions.

4. An additional field will then appear where you can enter your formula.

   Use of an equal sign

   The example formulas below include an equal sign (=), but it is not necessary when you enter a formula in a Formula field.

5. Complete any other relevant fields, and click Save.

In a numeric input field

You can use a formula in any numeric input field of an employee or payslip item – as long as you start the formula with =.

Basic Formulas

Formula inputs can consist of variables, numbers, and basic mathematical operators such as +, -, *, /, and ( ).

Examples of basic formulas:

• = normal_rate * 40 * 25
• = (basic_salary + normal_pay) / 4.3333 * 0.3333
• = max(0, 300 - mtd_before_current('raf_contribution'))

Variables and functions which can be used when creating formulas are:

Variables

• basic_salary: Basic Salary (salaried employees)
• normal_pay: Basic Hourly Pay (hourly paid employees)
• normal_rate: Hourly Rate
• shifts_worked: Number of shifts worked
• total_income: Total income
• periods_in_year
• hourly_paid
• weeks
• default_days_worked: For monthly employees, equal to their full days per week (Regular Hours) x 4.333. For weekly paid employees, full days per week (Regular Hours).
• days_with_leave_for_system_type:
  • For example: = normal_rate * days_with_leave_for_system_type('unpaid'). This would be the number of days taken with unpaid leave. Note: This considers days with unpaid leave, not days of unpaid leave.
• raf_contribution: The total amount contributed to a Retirement Annuity Fund – to be used with the mtd_before_current function. (It includes the contributions of both the employee and employer.)

Functions

• min: Used to select the lowest of the values in the list provided to it.
  • For example: = min(50,100) = 50
• max: Used to select the highest of the values in the list provided to it.
  • For example: = max(50,100) = 100
• round: The number in brackets will be rounded up or down depending on the decimal. This functions as per the regular rounding of numbers.
  • For example: = round(1.1) = 1, and = round(1.5) = 2
• ceiling: Rounds up the number in brackets to the nearest whole number.
  • For example: = ceiling(1.1) = 2
• floor: Rounds down the number in brackets to the nearest whole number. The number will always be rounded down regardless of the decimal point.
  • For example: = floor(1.1) = 1, and = floor(2.7) = 2
• mtd_before_current: This function accepts a string argument representing an account name, e.g. basic_salary. It will return the month-to-date value of the given account – but excluding the value for the current payslip.
  • For example: = max(0, 300 - mtd_before_current('raf_contribution')). When used in the Amount field, this will result in a R 300 RAF Deduction on the first payslip in any given month for non-monthly employees. Note that you can use this formula when adding the Retirement Annuity Fund system item to the employee's profile.

Examples

Example 1: Bargaining Council Levy

An employer must make a contribution that is 0.32% of the employee's hourly pay, with a maximum contribution of R 4.26. Since there is a maximum, the formula must select the lowest of option (1), which is R 4.26, and option (2), which is the employee's pay multiplied by 0.32%.

= min(4.26, (normal_pay * 0.0032))

Example 2: Trade Union deduction

An employee must make a contribution of 1% of their hourly pay, plus R 1.80. Before the R 1.80 is added, the minimum contribution is R 9.13, and the maximum contribution is R 16.73.

= min(16.73, (max(9.13, (normal_pay * 0.01)))) + 1.80

"IF" Statements

General IF statements

The IF function returns one value if the specified condition is true and another if it's false. The IF statement is also known as a logical formula: If, then, else. If something is true, then do this; else/otherwise, do that.

The IF statement works as follows:

if (condition, true statement, false statement)

For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee's salary is greater than R 10,000, then the contribution is R 100, but if the employee earns less than R 10,000, then the contribution is R 80.

The formula will be written as:

= if (basic_salary>10000, 100, 80)

This means that if the basic salary is greater than 10 000, the result will be 100, and if it's less, it will be 80.

Nested IF statements

A nested IF statement is an IF statement within an IF statement. It works as follows:

if (condition, true statement, if (condition, true statement, false statement))

For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee's salary is greater than R 10,000, then the contribution is R 100, but if the employees earns between R 5,000 and R 10,000, then the contribution is R 80, and if they earn less than R 5,000, it is R 60.

The formula will be written as follows:

= if (basic_salary>10000, 100, if (basic_salary<5000, 60, 80))

This means that if the basic salary is greater than R 10,000, the result will be R 100. Otherwise, if the salary is less than R 5,000, the result will be R 60; otherwise, it will be R 80.