The [Employment Ordinance] stipulates that the 12-month Average Daily Wage must be used to calculate the relevant legal rights of employees. This article describes in detail how to set up ADW in the Workstem system.

The name of ADW in the system is corresponding to the [Average Daily Wage], which is calculated based on the [ADW Income Current Month] and [ADW Worked Days Current Month] of the past 12 months in the system. This article describes how to calculate the average daily wage of employees through the Workstem.

If it is a newly established company and want to calculate salary and ADW through the system, follow the steps below:

Step 1

In the [Payroll] > [Settings] > [Average Daily Wage (ADW) ] section, click the [Settings] button

Step 2

Enter the [New Average Daily Wage (ADW) ] page, set according to the following content and [Save], the system will calculate the two pay items [ADW Income Current Month] and [ADW Worked Days Current Month] according to the settings

According to the labor law, when calculating the average daily wage, the employer must exclude the period during which the employee’s wages or full wages are not paid. Therefore, select all non-full-pay leave types in the [Leave Type] column, including Sick leave, Maternity leave, Paternity leave, work injury leave, etc.

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If your company’s rest days or statutory holidays within 3 months of the employment period are not paid, then check the [Excluded from ADW calculation] and tick to not include [Rest Days] or [Statutory holidays within the first 3 months of employment, otherwise no need to tick

Income additions is used to set all employees' income, including wages, transportation allowance, work allowance, commission, bonus, overtime pay, etc.

Income deductions is used to set pay items for which employees have not received all wages, such as sickness allowance, maternity leave pay/deduction, holiday pay/deduction, etc.

After completing the above settings, the system can automatically calculate the ADW of each employee when performing salary calculations.

If you find that the calculation results of [ADW Income Current Month] and [ADW Worked Days Current Month] are incorrect after setting, you need to check whether the pay item sequence [ADW Income Current Month] and [ADW Worked Days Current Month] are listed in all income additions and the salary item set by the income deduction.

Steps to view the order of salary items: Click [Payroll] > [Settings] > [Settings] of Pay Items > Adjust the pay item order

If your company has issued salary data multiple times before using Workstem, you can use the [Import Historical Data] function to import the historical salary data into the [ADW Income Current Month] and [ADW Worked Days Current Month] items. The system can also calculate the employees' accurate ADW data.

Related Reading:

How to Adjust the Order of Pay Items?

How to Import Historical Salary Data?


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