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Calculating OOB for New Employees

When an employee starts work mid-month, their out-of-office (OOB) days must be calculated to determine their basic pay for that month. OOB is calculated as the number of days in the month before their start date divided by the total days in the month, subtracted from their monthly basic rate. For example, if an employee with a monthly basic rate of RM2000 starts on May 10th, their OOB would be 8 days, and their basic pay would be RM1419.35 after subtracting the OOB amount from their monthly rate.

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3 views1 page

Calculating OOB for New Employees

When an employee starts work mid-month, their out-of-office (OOB) days must be calculated to determine their basic pay for that month. OOB is calculated as the number of days in the month before their start date divided by the total days in the month, subtracted from their monthly basic rate. For example, if an employee with a monthly basic rate of RM2000 starts on May 10th, their OOB would be 8 days, and their basic pay would be RM1419.35 after subtracting the OOB amount from their monthly rate.

Uploaded by

navin212
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

When a new employee report to work and the starting date is not on the first

day of the month, OOB need to be calculated in order to obtain for employees
basic pay on that respective month.
Example:
Mr. A starts working on 10 May 2006 and his monthly basic rate is RM2000.
This means from 1st 9th, he was not engaged with his company thus the OOB is
8 days.
Basic Pay = Basic Rate OOB
= RM2000.00 (9/31) * RM2000.00
= RM1419.35
If his rest day is Sunday, his working days for May 2006 will be 20 days.

Formulas & Parameters

1)

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