Administration af ansatte (HR)

Svar: How is the salary calculated - Formula?

iffi — Tue, 14 Apr 2020 15:15:54 GMT

More update on this from a legal expert from an employee union in Denmark:

" There are no official way to calculate the value of one day.

The holiday act says that 1 day holiday is 4,8% of a month salary. That gives: 48.565,30 kr. X 0,048 x 8 = 18.649,07 kr.

And that would give you a month salary on 29.916,22 kr. In March you had 21.932,72 kr.

The way your company calgulate it, is wrong, because you have paid week.

If they want to make that kind of calculation, that would be: 48.565,30 kr. 8/31 = 12.532,98 kr. In reduction (that is 6000 less that the salary act would give) "

Basically they believe the pay is calculated wrongly and asks to open a case. However, I am hoping our manager can resolve this with HR.

Svar: How is the salary calculated - Formula?

iffi — Fri, 10 Apr 2020 10:08:50 GMT

They (Visma and HR) clearly told that 14 working days out of 22 working days. Remaining 8 working days were unpaid leave. However they also said in yet another email that the pay in Denmark is calculated based on working days versus month calendar days.

I believe we should speak to a lawyer as thus employee still taking unpaid leave in the next coming months.

Svar: How is the salary calculated - Formula?

Cookie - John Hannover — Fri, 10 Apr 2020 09:45:55 GMT

Ole Lynge Andersen:

According to danish law (Ferieloven § 8, stk. 2) each unpaid vacation day reduces 4,8% of the monthly wages.

That means, that the wages should have been reduced by 38,4%, a reduction of DKK 18.649.

Salary before taxes for March should have been DKK 29.916.

Ligger i alle fald tæt op af mit tal på 29.139 så vi er enig om, noget virker galt, men helt usædvanligt for visma dataløn, så snarere har de fået noget galt oplyst om perioden - f.eks at det var 3 af 5 dage orlov og ikke 3 af 5 dage arbejde

vh John H

Svar: How is the salary calculated - Formula?

Steffen Bering Jensen / www.multiregnskab.dk — Fri, 10 Apr 2020 08:56:15 GMT

Some additional documentation on the 4,8% mentioned above

This is from the help system of the www.danlon.dk payroll system:

Når medarbejdere med ferieordning Ferie med løn holder ferie, kan det ske, at der ikke er dækning for de afholdte feriedage. I den situation kan du ved at markere her få gagen reduceret, svarende til de manglende feriedage. Dette sker kun for medarbejdere hvor feltet Gage er udfyldt, og altså ikke for timelønnede.
Er der ingen markering, sker der ingen reduktion af gagen.

Der reduceres med 4,8% af gagen plus personligt tillæg per manglende dag.

Please return to this forum and post another entry when there is a conclusion

Svar: How is the salary calculated - Formula?

Ole Lynge Andersen — Thu, 09 Apr 2020 23:49:04 GMT

According to danish law (Ferieloven § 8, stk. 2) each unpaid vacation day reduces 4,8% of the monthly wages.

That means, that the wages should have been reduced by 38,4%, a reduction of DKK 18.649.

Salary before taxes for March should have been DKK 29.916.

Svar: How is the salary calculated - Formula?

iffi — Thu, 09 Apr 2020 22:22:46 GMT

Lets see if I get more opinions from others on this...

Svar: How is the salary calculated - Formula?

Cookie - John Hannover — Thu, 09 Apr 2020 22:17:22 GMT

Strange -Visma Dataløn knows what they do normally - but I still think it is wrong - however - without knowing how many days in % the 2 out of 5 was for the month - as there are not full weeks in a month- If there were it would be /5 * 3 as a simple calculation. She will need to go either a union if she is a member og a lawyer I am afraid
If is not because the pension eats more because it is not reduced - then obviously being on holiday 8 out of 22 working days could never lead to less than half salary

Not being able to get an answer from Visma dataløn as to how working two/fifth less days = 2/5 = 40% less working time - can lead to more a reduction with more than 50% sounds very strange

br John Hannover

Svar: How is the salary calculated - Formula?

iffi — Thu, 09 Apr 2020 22:03:11 GMT

Thanks John for your detailed answers / calculations.

I have asked HR several times. They asked the Danish payroll Visma several times. The answer is they say the above formula is correct. Thats it. They have stopped explaning this now.

Svar: How is the salary calculated - Formula?

iffi — Thu, 09 Apr 2020 21:46:28 GMT

Thank you. I guess you are asking for more information? As thanks for the annswer but your answer is not yet helpful to me.

Firma Pension is of %. 7.84% of salary (48565Dkkr)

Own pension is of %. 4% of salary (48565Dkkr)

How would you explain the Gross amount of 21XXXDKkr which is less tha half of the normal amount?

Svar: How is the salary calculated - Formula?

Cookie - John Hannover — Thu, 09 Apr 2020 21:37:25 GMT

Without calculating - just pointing out that if pension was paid in with the same amount per month and not as % af the salary - then that would explain some or alle of it

However I cannot on a quick glance understand:

Annual salary divided by 12 divided by 31 days @14days = 21932.72 Gross pay

IF the monthly salary was, as you describe 48.565 then that makes an annual salary x 12 as 582.780 (the salary per year would for "funktionærer" be the month * 12)

the calculation they use - leeds to 21.932 correctly - but why they use 31 days as an average month is a puzzle as that i wrong. There are not 31 workings days - but on average 21,66 per month - so if they wanted to use an average, it would bethe salary you mention 48.565 divided byt 21,66 days on average = per day on yearly average 2.242 kr multiplied by 14 days= 31.390 in gross pay and not 21932

It must be wrong to use 31 days up against the reduction in working days being 2/5 /which may not be exact as a month is not full weeks - but if you just used that, it would be 48.565 / 5 * 3 = 29.139 gross salary. The reason this is not the same as the 31.390 is - that a month is only 4,333 weeks on average

If you wanted to calculate hours in a month, for a person employed to do 37 hours a week, you would go:

37 hours per week * 13 weeks for a quarter = 481 hours divided in 3 month for a quarter = 160.33 hours per month - which is also the official working time

Now you got me calculating, but it is wrong what then do, and if the employee has a union membership - go that way - otherwise - take it up as best you can

br John H

How is the salary calculated - Formula?

iffi — Thu, 09 Apr 2020 21:13:12 GMT

Hello there,

An full-time employee has a salary of ca. 48565DKK per month. Now he took 2 days off (unpaid) per week in March.

The employer sent this to HR:

March 2020

22 working days, 8 days off, so salary should be 14/22^nd of the normal amount.

When march ended, the employee received even less than half of the normal salary amount. When we asked HR, they said, the Danish payroll provider has used this salary calculation formula:

You were paid for 14 working days. The payroll calculation is as follows done by a Danish payroll provider: Annual salary divided by 12 divided by 31 days @14days = 21932.72 Gross pay Less taxes and pension = 13198.86 deposited to your bank

Is this correct?

Best Regards

Iff