In this article you'll learn how to calculate surcharge additional payments for employees based on surcharge rates and hourly base salaries. The surcharge calculation multiplies an employee's base hourly rate by the surcharge percentage to determine the extra payment owed for hours worked under specific conditions. This article is relevant for HR administrators who need to understand how surcharges are computed in the system.

​

To configure the surcharge rate, you first need to create a surcharge rule. For this, go to Attendance settings > Salary surcharges.
​

Once you have defined the name, description and the conditions for applying a surcharge rule, the next step involves selecting the surcharge rate. This rate indicates the percentage by which employees' regular pay rates will be increased. 100% is the basic salary. For example, if you want your employee to earn 1.5 times their normal salary, you would set a surcharge percentage of 150%.
​

In Germany, the most common surcharges are:

A person earning 10 euros as their basic rate will get the following extra payment in the aforementioned examples:

​The base salary or basic wage is the current wage to which an employee is entitled for the regular working hours that apply to him for the respective payroll period.

​

Calculating the surcharge rate for hourly employees within Kenjo's system is a straightforward process. The tool simply takes the hourly rate specified on their salary page (Employee > Compensation > Salary > Add Salary) as the base for the calculation.
​

For instance, if Employee A is an hourly worker with an hourly rate of 10 euros and a 200% surcharge rate, they would earn an extra 10 euros for each hour worked or 20 euros an hour.
​

Surcharge payment: (10 euros x 2) - 10 = an additional payment of 10 euros per hour (which equals to 20 euros the hour)

Calculating for Salaried Employees
​

When it comes to salaried employees (those with salaries set as Monthly or Annual on their salary page) Kenjo recommends the use of an equivalent hourly rate. To access or edit this suggested value, navigate to Employee > Compensation > Salary > Add Salary for salaried employees.
​

The suggested rate per hour for salaried employees is calculated based on the average hours worked per month, using the following formula:
​

Average hours worked per month = (Hours in the work schedule * 52.2) / 12
​

Subsequently, to determine the Rate per hour:
​

For Annual Salary:

Hourly rate = Yearly salary / 12 / Average hours worked per month
​

For Monthly Salary:

Hourly rate = Monthly salary / Average hours worked per month
​

Here's an example:
​

For an employee earning 24,000 euros annually and working 40 hours a week:

For an employee earning 24,000 euros annually and working 20 hours a week:

This method ensures that surcharge rates for salaried employees are accurately determined based on their salary and expected monthly working hours.

​