Friday, October 1, 2010

Calculation Of Compensation Rate


Frequency table lists the formulas that are used to convert compensation from one frequency to another:

Calculation DescriptionFormula
From hourly to annualCompensation rate × job standard hours / frequency factor of standard work period
From other frequencies to annualCompensation rate × compensation rate frequency factor
From annual to hourlyAnnual compensation rate / job standard hours × frequency factor of standard work period
From annual to other frequenciesAnnual compensation rate / desired frequency factor

The following is the formula for calculating hourly rates:
Hourly rate = compensation rate × compensation frequency factor / standard hours × standard work period frequency factor

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