If your company operates a comprehensive wage system, check out this guide! We will walk you through everything from updating HR information to payroll settlement!
Updating HR Information
If you are operating a comprehensive wage system, you need to update the [Comprehensive Contract Hours] agreed upon with the member in the member's HR information. In this guide, we will show you how to change the information for one member, but if you want to enter comprehensive contract hours for multiple members at once,
please go to [Members] → [HR Information Management] → [Bulk Information Change] tab, click [Change Information] at the top right, and update the information in bulk through [Contract Information Change]. Check the Bulk Information Change (Web) guide for details!
Click the [Add] or [Change] button on the right side of the [Member Profile] → [Wage Contract] tab.
Enter the [Contract Start Date], income type, and contract amount (annual salary or monthly salary).
What is the contract start date? It refers to the date when the annual or monthly salary was agreed upon. Usually, enter the hire date or the date of the salary negotiation contract.
Click the [Comprehensive Contract Work Hours] tab.
Enter the comprehensive contract hours agreed upon with the member in [Contract Work Hours].
What does "Include night hours in prescribed work hours" mean?: For night shift workers whose prescribed work hours include night hours, enable this checkbox. In most cases, you should leave this checkbox unchecked.
What does "Enter comprehensive contract work hours on a weekly basis" mean?: If the comprehensive contract hours are agreed upon on a [weekly basis] rather than monthly, enable this checkbox.
When entering comprehensive contract work hours, only up to 12 hours per week or 52 hours per month can be entered.
When you enter the comprehensive contract hours, the premium time is automatically calculated based on the overtime premium rate.
After confirming the wage contract information, click the [Pay Item Settings] button at the bottom right.
If the application date for [Salary Payment Information] is the same as the wage contract application date, the salary information reflected on that date will be automatically retrieved and the ordinary hourly wage and base pay will be calculated automatically. When checking the automatically calculated ordinary hourly wage, please make sure it does not fall below the minimum wage.
If there are allowances other than fixed overtime pay, such as meal allowance, vehicle maintenance allowance, or childcare allowance, click [Select Items] at the top right to add various pay items such as meal allowance, vehicle maintenance allowance, childcare allowance, etc. As pay items are added, the base pay is automatically reduced accordingly.
When clicking [Select Items], pay items are not visible. Where do I add them?
Click [Go to Pay Item Settings] at the bottom left to add the pay items used by your company!
Once you have completed adding salary payment information, you can confirm that the wage and contract payment information has been updated as shown in the image below!
Click [Settings] → [Pay Items] → [Automatic Amount Entry Feature] at the bottom of the left menu to change the rounding policy for base pay, fixed overtime pay, and ordinary hourly wage decimal places (round up or round off)!
Managing Work Hours Based on Comprehensive Contract Hours
In [Settings] → [Work Policy & Approval], you can set up approval and reference procedures for each work type and designate approvers. Through approval settings, you can set up approvals for when overtime, holiday (public holidays and weekly rest days), night work, etc. occur, and manage members' work. Go to Work Approval Notification Settings Guide
In addition to approval settings, click the [Work Hours Exceeded] card in the [Attendance Management] menu on the right to check members who have exceeded work hours and their cumulative overtime hours.
Payroll Settlement
flex payroll settlement automatically calculates overtime hours and allowances based on each member's comprehensive contract hours when the member's wage and contract information is properly updated and work records are completely recorded!
Additionally, compensatory leave hours granted are automatically deducted when calculating overtime pay.
In the [Pay Items] → [Overtime Pay] tab, for members with comprehensive wage contract hours entered, you can check the details as shown below.
Although 4 hours and 30 minutes of overtime occurred, since it is included in the comprehensive contract hours, it is not counted as recognized hours, and accordingly the overtime pay amount is 0 won.
Since no separate comprehensive contract was made for [Night] work, all night work hours are counted as recognized hours and the amount is calculated by multiplying the ordinary hourly wage by the premium rate.
Since no separate comprehensive contract was made for [Holiday] work, all holiday work hours are counted as recognized hours and the amount is calculated by multiplying the ordinary hourly wage by the premium rate.
As shown above, overtime pay is automatically calculated based on comprehensive contract hours and work data, allowing you to complete the payroll settlement!
What is the formula for calculating hourly wage, base pay, and fixed overtime pay?
What is the formula for calculating hourly wage, base pay, and fixed overtime pay?
Based on annual salary of 36,000,000 won, monthly prescribed work hours of 209 hours, with no allowances included in ordinary wages
Rounded to the first decimal place
Based on a comprehensive wage contract of 10 hours of monthly overtime,
Overtime calculation hours for 10 hours of overtime = 10 hours * 1.5
→ 15 hours
Total calculation hours = 209 hours (monthly prescribed work hours) + 15 hours (overtime calculation hours)
→ 224 hours
Base hourly wage = (annual salary / 12) / total calculation hours = (36,000,000 / 12) / 224 hours
→ 13,393 won
Overtime pay (fixed) = overtime calculation hours 15 hours * base hourly wage
→ 200,893 won
Base pay = 209 hours (monthly prescribed work hours) * base hourly wage - allowances included in ordinary wages (meal allowance, etc.)
→ 2,799,107 won
Are salary and compensatory leave automatically calculated based on the comprehensive contract hours?
Are salary and compensatory leave automatically calculated based on the comprehensive contract hours?
Salary and compensatory leave are automatically calculated based on the comprehensive contract hours. For example, if 12 hours of monthly overtime is entered, up to 18 hours (12 hours * 1.5 (overtime premium rate)) will be automatically deducted when overtime occurs.
When viewing the period from July 1 to July 31 in the Attendance Management - Compensatory Leave tab,
if Hong Gildong had 3 hours of overtime during that period, since it falls within the comprehensive contract hours, no compensatory leave hours need to be granted. However, if Hong Gilsun had 30 hours of overtime, 30 hours - 18 hours = 12 hours of compensatory leave must be granted.
Also, if you have a comprehensive contract for overtime but not for night or holiday work (or if that information is not entered in flex), if there are work records during night hours or on holidays (public holidays and weekly rest days (usually Sundays)), compensatory leave hours will appear.
How does flex determine overtime types like extended, night, and holiday work?
How does flex determine overtime types like extended, night, and holiday work?
We will explain based on a typical worker who works 8 hours per day and 40 hours per week.
flex basically follows the Labor Standards Act, and
determines work that exceeds the member's prescribed work hours in their work type as overtime.
In other words, if work is registered exceeding the daily prescribed work hours of 8 hours, the excess time is determined as overtime.
Also, work registered between 10 PM and 6 AM is determined as night work, and if there are work records on public holidays and weekly rest days (usually Sundays), it is determined as holiday work.
Also, when comprehensive contract hours are entered, the corresponding hours are deducted when granting compensatory leave or calculating overtime pay.
Can I enter comprehensive contract hours to prevent all overtime from being classified as extended, night, or holiday work?
Can I enter comprehensive contract hours to prevent all overtime from being classified as extended, night, or holiday work?
Under the Labor Standards Act, comprehensive contract hours are limited to within 12 hours per week or 52 hours per month. Therefore, comprehensive contract hours exceeding this cannot be entered. If you want to prevent all overtime from being classified as extended, night, or holiday work, you need to manage members so they do not work overtime, night, or holiday hours.