Regular Pay

What is Regular Pay?

 

The Normal Pay is the fixed salary that an employee is paid for not being an overtime allowance, such as a punctual wage or bonus. This is the amount of payment that an employee used to receive as part of performing his usual duties during his normal working hours.

 

What is Retro Regular Pay?

 

The term retroactive regular Pay (retro Regular Pay) refers to wages paid in a previous but inconvenient period while another is pending. An under-settlement occurs when an employer realizes that he has underpaid a particular employee in the past period and resolves the matter by paying the employee the pending amount.

 

How to Calculate Regular Pay?

 

Compensation is calculated for both hourly and salaried employees. How? Both approaches can be broken down as follows:

 

Hourly Pay

 

For hourly-paid employees, Regular Pay is equal to the hourly Wage divided by the number of regular hours worked in a pay period.

 

Formula: Regular Pay = No. Of Regular Hours Worked * Hourly Wage

 

For example, if an employee works for 40 hours a week and his salary is $15:

 

Regular Pay = 40 hours * $15/hour = $600 (weekly pay).

 

Salaried Pay

 

For salaried employees, regular pay is their salary for the year divided by the number of pay periods in a year.

 

Formula: Regular Pay = Annual Salary / Number of pay periods

 

For example, if an employee’s annual salary is $50,000 and is paid biweekly.

 

Regular Pay = $50,000 / 26 = $1,923.08 (bi-weekly Pay).

 

Also, See: Gross Pay | Net Pay | Overtime Pay | Base Pay | Incentive Pay