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If you start reading a book on payroll calculation, you will probably find in it a description of such remuneration systems or methods of calculating wages: time-based, piece-rate, time-based bonus, bonus, commission, etc. These systems are not described in legislation; they exist in expert articles and opinion pieces. An employer can adopt its own remuneration system, fix it in local regulations and apply it in the organization.
What it is
To accurately calculate the hourly tariff rate in 2020, you need to consider:
- employee's monthly salary;
- type of workweek (5-day or 6-day, 40-, 36- or 24-hour);
- number of working hours in 2021
For reference, the most common type of workweek is 5 days, 8 hours a day. Teachers, service workers, and some other categories work 6 days a week, but their total working time per week will be 40 hours (usually their work schedule in hours is as follows: 7 + 7 + 7 + 7 + 7 + 5 = 40).
Regarding the duration of a 5-day work week:
- Adolescents under 16 years of age and employees of production facilities producing chemical weapons should work no more than 24 hours a week;
- no more than 36 hours a week - teachers, workers in industries with harmful and dangerous working conditions, etc.
Medical workers, depending on their position and specialty, have a 24-, 30-, 33-, and 36-hour work week.
When is hourly wages beneficial?
The benefit for employers when setting hourly wages is obvious: they only have to pay for the time worked. This type of payment is especially popular for those employees who do not work full time. Examples include:
- workers with an uneven workload involved in performing work at a specific facility;
- workers whose working hours cannot be regulated (for example, teachers who teach additional classes in educational institutions);
- employees employed on a flexible schedule;
- workers whose labor productivity is very difficult to determine.
However, this system has certain disadvantages. For example, in the absence of bonus payments, employees are usually not interested in working faster and more, i.e. production efficiency decreases. In addition, the employer needs to monitor every hour the employee works, which may require an additional employee to keep track of time, leading to new costs.
How to calculate
Let's consider 2 calculation options: for 40 and 24 hours of work per week. To calculate the hourly tariff rate from the hourly salary, the formula is used:
Example 1: 40 hours per week.
Let’s say a proofreader at a publishing house works 5 days a week, 8 hours a day.
Salary - 20,000 rubles per month.
The number of working hours in 2021 at 40 working hours per week is 1970.
Hourly tariff formula: 20,000 × 12 /1970 = 121.82 rubles.
Example 2. 24 hours a week.
A 15-year-old teenager works as a courier for a publishing house.
Salary - 15,000 rubles per month.
The number of working hours in 2021 with a 24-hour work week is 1179.6.
Formula for calculating the hourly tariff rate for 2021: 15,000 × 12 / 1179.6 = 152.5 rubles.
What features need to be taken into account in an employment contract for hourly wages - sample
When employing an employee, all aspects relating to the calculation and payment of wages are usually discussed between him and the employer, which must then be formalized in writing by signing an employment contract. In it (or an additional agreement to it), the Labor Code obliges to prescribe the conditions for hourly wages, if one is established for the employee.
NOTE! When transferring employees to hourly pay from another salary system, the employer must notify them of this no later than 2 months before introducing the planned changes. Such changes, by the way, should be reflected in orders and other regulatory documents of the organization.
It is advisable to stipulate in the employment contract:
- the amount of the hourly wage rate (salary);
- tariff category;
- the procedure for calculating wages for the month;
- bonus conditions;
- terms of payment for holidays, weekends and night hours;
- deadlines for issuing wages;
- other conditions, which may include a probationary period, social guarantees, etc.
Download a sample extract from an employment contract regarding the establishment of an hourly wage system and hourly rate from the link below.
Minimum size
The legislation does not establish a minimum hourly wage rate in 2021. But when calculating it, it is necessary to take into account the following: the minimum monthly salary of an employee who has worked the full working time cannot be lower than the minimum wage. From January 1, 2019, the federal minimum wage is 11,280 rubles. It is obvious that the hourly wage rates of workers for 2021 will not be lower than those calculated from the minimum wage.
The hourly tariff rate from the minimum wage for a 40-hour work week is calculated using the formula:
If a regional minimum wage has been established in the region where the organization operates, the company should focus on it. For example, in Moscow the minimum wage is 20,195 rubles, and in St. Petersburg - 18,000 rubles.
Brief conclusions
As market growth slows and competition increases, the struggle for operational efficiency takes center stage. In the service sector, assessing the cost of a man-hour, normalizing work and recording employee time become key criteria for the economic success of a company.
Of course, there will always be clients with large advertising budgets, the percentage of commission from sites for which will begin to cover the volume of work, but the percentage of such clients on the market is not large, and sites are constantly tightening the conditions for working with such companies, so this is a different story.
It’s time for agencies on the market to look at the experience of their Western colleagues, who evaluate their work not as a percentage of the budget, but using the classic Time&Material methodology. A percentage of the budget can be the agency’s KPI for “operation success” - achieving and exceeding planned targets.
PS The reader might be surprised by the specialist’s income of 33,410 rubles in hand. This is an example calculation. If in your company this figure is N times higher or lower, then the cost of a person-hour will be N times higher or lower.
How to calculate overtime
Calculating the hourly tariff rate is necessary to correctly pay the employee for overtime hours. According to the Labor Code, for the first 2 hours the rate per hour of work is multiplied by 1.5, for subsequent hours - by 2.
Example 3.
An urgent job arose that cannot be “postponed until tomorrow,” and the proofreader worked 11 hours instead of 8. Then he will be paid for 3 hours (using the average hourly wage rate in 2021 from Example 1):
121.82 (hours) × 2 (first 2 hours of processing) × 1.5 (increasing factor) + 121.82 (hours) × 1 (third hour of processing) × 2 (increasing factor) = 609 ,1 ruble.
IMPORTANT!
Teenagers under 18 years of age cannot be involved in overtime work, so we will not provide formulas for courier workers.
Agency features in the market
For agencies with more than 50 employees, economies of scale reduce the share of administrative costs. Accordingly, the figure of 45% used in the example may be higher and reach the level of 60-65%. As a result, the cost of man-hours is reduced.
For some agencies working with medium and small budgets, the share of payroll in the commercial department is extremely small, since specialists set up advertising tools and communicate with clients. Due to such savings and narrow specialization in one advertising channel, it is possible to increase the indicator from 45% to 70% and reduce the cost of a man-hour.
Functions
Unlike the monthly or daily TS, it quite strictly links the amount of a worker’s income with the time actually worked. In practice, this is required in the following situations:
- overtime work;
- going out on a weekend or holiday;
- night work;
- shift schedule;
- summarized recording of working hours.
Sometimes the hours have to be counted if people work in dangerous or harmful conditions. This is necessary not only to ensure fair payment for risk, but also to preserve the health of employees.
Average salary calculator
The more we produce, the more costs we incur. This group will contain materials, raw materials, components, and piecework wages for employees. 2 The group of constant costs includes such costs as rent, costs of repair and maintenance of equipment and premises, hourly wages, depreciation charges and other payments that do not depend on how many goods were produced and sold. Even if you don't produce a single unit in a given month, you will still have to pay for the premises, as well as pay employees who have a fixed rate.
Freelancer pricing range depending on experience and qualifications
If we do not consider those who will obviously derail the project, then the cost of freelancers’ services is approximately as follows:
- From 100-150 rubles per hour,
beginning specialists or people working in areas that do not require exorbitant qualifications offer their services. For example, for this amount you will find a person who will upload materials to the site, write simple texts for sites, and add new products to the catalog. - From 150 to 300 rubles per hour
, average freelancers who have certain skills, work experience, portfolio and reviews offer their services. Among such freelancers you can find people with specialized education, and not self-taught ones. As a rule, they will not be able to solve complex problems, but will cope well with tasks of average complexity. - from 300 to 700 rubles per hour
- the level of good specialists with an established portfolio of clients. They can allow you to choose a project and, as a rule, do not take on small things.
Good specialists who are either in high demand (programmers), live in the capital, or have unique experience and knowledge charge more than 700 rubles per hour Such freelancers, as a rule, occupy TOP positions on exchanges and have many years of experience.
Online calculator of the value of your time
If a business uses rent, Russian investors consider it typical if the company's price is equal to 7-18 months' income. In some cases, for a number of reasons, in obtaining a certain business, investors are willing to pay an amount equal to the revenue for the last 24-30 months. The profitability requirements for businesses that are offered in conjunction with owned real estate are traditionally not as high. A cost equal to the total income for a period of 2 to five years is considered acceptable. 3. When determining the real value of a business, use another significant criterion - the quantitative ratio of organizations offered for sale to potential clients. Over the past years, companies in the service sector, food business, and social catering have been in great demand. 4. Next you need to assess how high-tech the organization is.
Average earnings calculator
This is a time period, the beginning of which is the moment the property is put up for sale, and the end is the moment the transaction is completed. However, the exposure period is not the exclusive calculation criterion.
Important
There are two main methods for calculating liquidation value: direct and indirect. 3. With the direct method of calculation, a comparison of the object put up for sale with a similar object sold earlier is used.
This method is primitive, but not always applicable, due to the fact that information about liquidated objects is rarely available on the real market. 4. The indirect method of calculating liquidation value involves calculation through market value.
This method is carried out in three steps: determining the market value of the object, calculating the discount for the forced sale, calculating the liquidation value.
How to calculate working hours when working every three days?
Calculation of working hours for a shift or flexible schedule, for example, every other day, is made in accordance with the Labor Code of the Russian Federation.
When working in such a schedule, the norm of 40 is not met, therefore, those hours that exceed the norm are considered overtime. The number of such hours is determined after the end of the accounting period, which must be one year. In this case, the overworked time will be compensated for by the unworked time.
Time sheet and use of working time
The actual hours worked by an employee of the organization are subject to accounting, which is determined by the Ministry of Finance. The time sheet contains indicators of hours worked and registered deviations from the standard use of the Russian Federation, such as vacation or sick leave. These variances are used to calculate payroll in the company.
The organization's accounting sheet must be updated every month by authorized persons who are assigned to perform these duties.
Accounting can be done:
- for the whole enterprise;
- for certain departments and divisions of the enterprise.
The main circumstance for opening a new time sheet is the time sheet for the previous time period. You need to open a new account a few days before the start of the month.
