Practical Guide: Manual Calculation of Overtime and Bonuses for Garment Workshops
Carlos Mendoza
Senior Accountant at ECNOM
In the dynamic environment of Gamarra, many garment workshops manage their payrolls in a traditional way. This guide details the manual process for calculating key concepts, ensuring compliance for Mypes in the sector.
Materials Needed for the Calculation
- Physical Attendance Book: Daily record of each worker's check-in and check-out.
- Spreadsheet (Excel): To consolidate data and apply basic formulas.
- Current Rates and Scales: Minimum living wage and legal percentages for overtime.
Step-by-Step Process
1. Attendance Management
Review the daily physical book. Mark unexcused absences and tardiness. Each absence deducts a proportional day's wage.
Example: If the monthly salary is S/ 1,200, the daily value is S/ 40 (1,200 / 30).
2. Overtime Calculation
Identify hours worked beyond the legal workday. The first 2 hours have a 25% surcharge, the following ones 35%.
Formula: Normal Hourly Value x N° Hours x Surcharge Percentage.
3. Settlement of Bonuses and CTS
Bonuses are calculated on the basic remuneration and are paid in July and December. The CTS (Compensation for Time of Service) is equivalent to a full salary for each semester worked.
This manual method, although meticulous, offers total transparency and control. For more agile management with less margin for error, consider contacting our firm to evaluate personalized solutions.