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Payrolls pegged to a foreign currency with base salaries in LKR

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This article is for Owners and admins who use Humanised

Overview

  • Automatically calculate and add exchange gain allowances to payrolls
  • Foreign currency pegged payrolls with based salaries maintain LKR

Step 1 – Switch on Foreign Currency pegged payrolls

Select the preferred base currency as foreign currency. Please make sure that pay details in master data and uploaded via CSV are in LKR

Step 2 – Set up the preferred calculation policies

Preferred pay item categories – Depending on your company policy the pay item categories that you’ll consider for the exchange gain allowance will differ. In most cases the basic salary and fixed allowances (since they remain static from month to month) are considered to calculate the variance amount. You have the choice to select any or all of these three categories.

  • Base Exchange Rate – Enter the exchange rate based on the salary package offered to the employee
  • Currency – Enter the currency type. If the currency you need is unavailable in the list, get in touch with your customer success representatives
  • Handled by – You can choose to add the variance to the basic salary (in which case you might want to peg only the basic salary) or add the variance as a new allowance
  • Allowance title – If you choose the second option, you’ll have to give a name to this new allowance. (Names like Exchange gain allowance or Living cost allowance are commonly used currently)
  • EPF/ETF and APIT preferences – Also select whether you want to consider this new pay item for EPF/ ETF and APIT
Foreign currency pegged payrolls LKR
Figure 1 - Foreign currency settings

Step 3 – Create payrun

When you create a payrun, you’ll be asked for the current exchange rate. The system will calculate the variance of salary when calculated between the two and add the relevant amount to pay details. If you have chosen to add a a seperate allowance, you will see a new pay item under variable allowance category in the name given by you. If you have chose to add to the basic salary, the variance will be added to the basic salary pay item.

Step 4 – Payslip

Payslip of the employee will denote the exchange rate for the month too.

What's next?:

Payrolls pegged to a foreign currency with a foreign base currency

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