Skip to main content

Deductions and Net Pay

This page explains how the final payment amount gets worked out for each worker at the end of a payment cycle.

Payment Formula​

Here is the basic math:

  • Gross Amount = Regular Earnings plus Overtime Earnings
  • Net Amount = Gross Amount minus Daily Base Advances minus Special Advances (Loans)
  • Running Balance = Previous Balance plus Net Amount

Earnings Breakdown​

Regular Earnings​

Regular Earnings = Regular Hours times the Regular Hourly Rate

Regular hours include:

  • The first 4 base hours per day
  • An additional 4 regular hours (if the worker's shift is long enough after the 4-hour base period)

Overtime Earnings​

Overtime Earnings = Overtime Hours times the Overtime Hourly Rate

Overtime hours are:

  • Hours beyond the base period that are less than 4 (these count as overtime, not regular)
  • Hours beyond base plus regular (after 8 productive hours)

See Time Calculations for the detailed rules.

Deductions​

1. Daily Base Advances​

This is usually the biggest deduction for most workers. It is the total of all daily cash advances the worker received during the payment cycle.

  • Tracked for each day of verified attendance
  • The amount depends on the worker type rate or any project-specific override
  • See Daily Advances for the full picture

2. Special Advances (Loans)​

Approved special advance amounts that are waiting to be deducted:

  • Only advances that have been approved are eligible for deduction
  • The approved amount (which might be different from the originally requested amount if there was negotiation) is what gets deducted
  • Once deducted, the advance is marked as paid and linked to the payment record
  • This brings down the worker's outstanding loan balance

Net Amount Scenarios​

Positive Net Amount​

Worker earned: 30,000 LKR Daily advances: 18,000 LKR Special advances: 2,000 LKR Net: 10,000 LKR -- the company pays the worker

Zero Net Amount​

Worker earned: 20,000 LKR Daily advances: 18,000 LKR Special advances: 2,000 LKR Net: 0 LKR -- everything balances out, no payment due either way

Negative Net Amount​

Worker earned: 15,000 LKR Daily advances: 18,000 LKR Special advances: 2,000 LKR Net: -5,000 LKR -- the worker owes the company

A negative net amount gets carried forward as a debt through the running balance system.

Running Balance​

The running balance tracks the cumulative financial position between a worker and the company across payment cycles:

  • Positive balance = the company owes the worker (accumulated underpayment)
  • Negative balance = the worker owes the company (accumulated overpayment from advances)
  • The balance carries forward indefinitely until it is settled

Example Over Multiple Cycles​

CycleGrossAdvancesLoansNetBalance
125,00018,0000+7,000+7,000
220,00018,0005,000-3,000+4,000
330,00018,0000+12,000+16,000

Stoppage Payments​

If a worker was affected by a project stoppage during the cycle, the stoppage payments get folded into the earnings calculation:

  • Stoppage payments might be a fixed amount per day or a percentage of the daily advance
  • The admin can override the stoppage payment amount for individual workers
  • These show up separately in the per-project payment breakdown

Below-Minimum-Hours Days​

Days where the worker logged fewer than 4 hours and have no approved special payment are skipped entirely in the payment calculation -- zero earnings and no daily advance counted for that day. If a special payment was approved for the short shift, then the special payment amount and the daily advance are both included in the cycle calculation.