Restaurant Salary Calculation help please.

[Ethan_Hunt]

Hey there folks!

Hope someone can please help me get my head around calculating the wages for my restaurant staff to be.

I understand that Sunday work time would be regarded as ordinary hours as we will be open on Sundays as well and should be calculated at 1.5 X regular wage. I further understand that all hours above 45 will be regarded as overtime hours and should also be calculated at 1.5 X regular wage.

All seems simple until I try to simulate a regular working week and then try to build my spread sheet to do the calculations… let me explain by means of an example assuming that for example the employee earns R14 per hour (regular wage). Further assume when we come to the end of the week, the times clocked are for example:

Monday = 9 hours worked
Tuesday = 9 hours worked
Wednesday = No work ( off day)
Thursday = 9 hours worked
Friday = 10 hours worked
Saturday = 10 hours worked
Sunday = 8 hours worked

The above hours already account for the 30 minute meal intervals and thus represent the actual hours worked which needs to be paid for and in this case totals 55 hours all and all.

To calculate overtime I suppose it’s simply subtracting 45 hours from 55 to get to 10 hours overtime.
I lose the plot more or less around here. Seeing that Sunday hours are regarded as ordinary hours also (but just paid differently) should I thus subtract the total Sunday hours (8hrs in this case) from 45 ordinary hours to get the ordinary hours excluding Sunday hours of 37. My payslip calculations will thus look like this.

Ordinary hours excluding Sunday hours = 37 hrs (37 hrs X R14 p/h = R518-00)
Sunday hours = 8 hrs (8 hrs X R14 p/h X 1.5 = R168-00)
Overtime hours = 10 hrs ( 10 hrs X R14 p/h X 1.5 = R210-00)

Could someone please check my logic or please explain to me by means of an example how a payslip would be calculated when a work week ordinarily includes work on a Sunday as well as overtime each week.

Kind regards and best wishes

DN

 

[politallycorrect]

Umm... I don't get why sunday hours are paid differently. Isn't it that the guys should work 45h and then anything above that is overtime? As long as they don't work more than whatever Gov says it surely doesn't matter when they work?

 

[Billy]

Are the wages covered by an Industrial Council or do they fall under the BCEA?

 

[Ethan_Hunt]

Hey folks

To politallycorrect - I'm afraid thats the law apparently, Sunday work in the hospitality industry is time 1.5

To Billy - No, not covered by a Industrial Council and the BCEA seems to be replaced by an Sectoral Determination on Hospitality act. It basically changed or over-ruled a couple of the BCEA stuff, like not being able to require them to pay for uniforms, aranging for night time work allowance etc...as well as Sunday remuniration of 1.5 times regular wage. There is also another Sectoral Determination for a minimum wage in the hospitality industry, but I'm cool with that....

Hope this helps.

Kind regards,

DN

 

[ChilliGirl]

i would take off the sunday hours (already @ 1.5)

55-8=47.


= 2 hours overtime


so 45x1??=
+ 2x1.5??=
+8x1.5??=

i would say that is fair...

 

[Billy]

i would take off the sunday hours (already @ 1.5)

55-8=47.


= 2 hours overtime


so 45x1??=
+ 2x1.5??=
+8x1.5??=

i would say that is fair...

I agree. Sunday work is a special case. All other hours above 45 are at 1.5. So total due is 45x14 + 2x21 + 8x21.

 

[Billy]

Just checked the Act: http://www.whichfranchise.co.za/article.cfm?articleID=270

Maximum ordinary hours of work are stipulated as:

* 45 hour per week, and
* 9 hours per day, if the employee works a 5 day week
* 8 hours per day, if the employee works a 6 day week

Your guys are on a 6 day week

Therefore max hours are 8 per day.

Therefore Normal hours = 5x8 = 40
Overtime hours = 1+1+1+2+2 = 7
Sunday Hours = 8

So 40x14 + 15x21 = 875

There appears to be a "Bargaining" Council for the industry (I can't get used to the name changes) I would suggest joining Fedhasa They will offer help and assistance in labour matters. www.fedhasa.co.za

 

[Nicky_G]

I have not worked with this stuff in a while but I think it used to be industry specific regarding number of hours worked and days per week. Just get it right or else you could be the ignition for a strike in the restuarant industry. They f@&k'n strike for everything now.

 

[Ethan_Hunt]

Sincerely thanks to all of you for coming to my aid with this puzzle. It is so unfortunately that the law is always made available without examples which really makes it difficult for people to implement sometimes without incurring the expense of legal advice. I can not help but to sometimes feel that I am being forced to incur expenses while trying to just exist. No wonder the courts are so behind in their work, with all the 101 different ways to interpret something, what’s the damn point of having them :twisted:

To BILLY => Any do, Billy, I am strongly favouring your example, it makes sense and is basically what I was planning, but "interpreted" in another way LOL So if I understand you correctly we take the 5 regular days and allocate to them 8 hours each, Sundays takes care of it self whether it be 8 hours, 5 hours or even 10 hours, if there is overtime in it, there is no point in splitting it up because either way it would be multiplied by 1.5. In the end whatever is left after the 5 X 8 and the Sunday hours taken out, is overtime.

May I just ask your opinion on something though? If the maximum ordinary hours is 45 per week, yet I am allowed 8 hours per day for 6 days, then am I to conclude that in a 6 day work week the maximum ordinary hours is actually 48 hours and not 45 ? Or does this simply mean that there will always be a 2 hour over time?

To Nicky_G => Don’t say that S-word so loud, hahahahahaaha, I live in Jeffreysbay, and the fuel guys are on strike, so the fuel stations are shutting down at 17H00 sharp everyday, what a mess, then the municipality went haywire and even the guys at the famous Links golf estate at St. Francis bay went on strike last week – it crazy out here, so I want to keep my nose clean, BUT.........sometimes one seems to have to wonder whether there are not more risks in doing things the right way than the wrong way, parliament seems to be a great example of the inverse hahahahahha

Kind regards,

 

[Billy]

"May I just ask your opinion on something though? If the maximum ordinary hours is 45 per week, yet I am allowed 8 hours per day for 6 days, then am I to conclude that in a 6 day work week the maximum ordinary hours is actually 48 hours and not 45 ? Or does this simply mean that there will always be a 2 hour over time?"

Overtime would be paid after 45 hours ie 3hours. Not sure what would be paid for overtime on Sunday. The Act may have a provision. Also Public Holidays would be paid differently.

I suggest joining an Employers organisation to get access to Fedhasa. The benefits will outway the costs.