The working hours formula for flexible working hours differs from other work systems!
Unlike systems that multiply the number of days in a month by working hours, this system divides the number of days in the current month by 7.
🤔 How are working hours calculated using the [Exact Labor Standards Act (Statutory prescribed basis, excluding public holidays)] option?
Statutory prescribed basis (excl. public holidays) = Weekly working hours x (Days in current month / 7 days) - Public holidays
🤔 What is the [Adjust to prevent shortfall] option?
Using this option applies the prescribed working hours that are more favorable to the employee each month.
When calculating working hours based on the statutory prescribed basis (excl. public holidays), depending on the reference month, even recording 8 hours of work every day may result in a shortfall.
For example, in January 2023 with 31 total days and 2 public holidays on working days, even working 8 hours every day results in a 1.1-hour shortfall. In this case, if you want to recognize that working hours are fully met when 8-hour work compliance is observed, regardless of the statutory formula, use the [Adjust to prevent shortfall option].
Statutory prescribed basis (excl. public holidays): 161.1 hours
40 hours X (31 days in month / 7 days) - 2 public holidays on working days (16 hours) = 161.1 hours
Target working hours with shortfall prevention: 160 hours
8 hours/day X 22 working days/month - 2 public holidays on working days (16 hours) = 160 hours
🤔 What is the [Compare working days with statutory prescribed hours then apply] option?
After calculating working days (business days) * average daily working hours each month, it compares with the statutory prescribed working hours (including public holidays) and applies the lower hours as the prescribed working hours.
Target working hours based on comparing working days with statutory prescribed hours
Working days (business days) * Average daily working hours vs Statutory prescribed working hours (incl. public holidays)
The lower of the two values is applied as the prescribed working hours.
<Comparison of Prescribed Working Hours by Option - 2026 Basis>
Public holidays are equally deducted at 8 hours each based on the Ministry of Labor standard in both working day-based calculations.
When using the compare working days with statutory prescribed hours option, April 2025 uses the Ministry of Labor standard as it results in lower hours for that month.
