Knowledge BaseTimebank
Timebank Calculations

Timebank Calculations

Updated:

July 25, 2019

These are the timebank calculations we will cover here:

–––

___workweek___

Workweek

Workweek decides how much a user is expected to work each day in a regular week. It can be tailored as a workspace default, or customised for a single user. Typically a company uses a 40 hour workweek (reflecting 100% employment), then reduce the amount or duration of workdays for employees with less than 100% employment.

Workweek = expected work schedule in a regular week

Workweek UI in the application.

–––

___holidays___

Holidays

Holidays define which days should not be considered workdays, and will remove expected working hours from the regular workweek. All public holidays are considered non-workdays and will not generate capacity for the respective day. Holidays can be tailored as a workspace default, or customised for a single user. Busy also supports holidays for several countries. If your country is not yet supported, please contact us.

Holidays = country specific public holidays considered non-workdays

–––

___capacity___

Capacity

Capacity is the total amount of expected working hours for a given day. It is based on the workweek and holiday setup. Capacity is calculated per. day, but often summed to weekly or monthly capacity, depending on your specified data grouping in the timebank.

if day is a holiday:

Capacity = 0

if day is not a holiday:

Capacity = amount of hours specified for this day in the workweek

–––

___start-date___

Start Date

Start date defines from when the timebank should start calculating expected capacity, and generate timebank reports. Hours logged before this date will not be included in the timebank.

Start Date = when the timebank should start generating capacity

–––

___overtime___

Overtime

Overtime is hours logged that exceeds the workspace default capacity. Companies typically pay their employees more per hour when working overtime (depending on country labor laws). For employees with less than 100% employment, extratime is typically used (see explanation below).

Overtime = all registered hours - workspace capacity

Overtime cannot be a negative number.

NB (1): If the user has custom holidays that differentiate from the workspace default, the user's holiday setup will be used when calculating overtime.

NB (2): If the user has a custom workweek that differentiate from the workspace default, the user will not generate overtime until reaching the workspace capacity. The difference between user capacity and workspace capacity will be stored as extratime (see explanation below).

NB (3): Annual leave, purchased leave, sick leave and other leave is also included in all registered hours, and will therefore be included in the total amount of hours when calculating overtime. If an employee is on sick leave for one day, make sure the amount of logged hours with the sick leave tag does not exceed capacity for that day, as this will generate overtime.

–––

___extratime___

Extratime

Extratime is hours logged that exceeds the user's default capacity, but is less than the default workspace capacity. This typically applies for employees with less than 100% employment.

Extratime = all registered hours - user capacity - overtime

Extratime cannot be a negative number.

NB (1): If the user has custom holidays that differentiate from the workspace default, the user's holiday setup will be used when calculating extratime.

NB (2): Annual leave, purchased leave, sick leave and other leave is also included in all registered hours, and will therefore be included in the total amount of hours when calculating extratime. If an employee is on sick leave for one day, make sure the amount of logged hours with the sick leave tag does not exceed capacity for that day, as this will generate extratime.

–––

___minustime___

Minustime

Minustime is hours logged less than the user's default capacity.

Minustime = all registered hours - user capacity

Minustime cannot be a negative number.

–––

___data-grouping___

Data Grouping

Monthly

Monthly grouping will calculate overtime, extratime and minustime on a monthly basis. This means that capacity and all registered hours will be summed and locked for each month, before being compared and calculated.

Weekly

Weekly grouping will calculate overtime, extratime and minustime on a weekly basis. This means that capacity and all registered hours will be summed and locked for each week, before being compared and calculated.

NB: Busy uses ISO week date system when running weekly data grouping. This means that weeks start on Mondays and ends on Sundays.

Daily

Daily grouping will calculate overtime, extratime and minustime on a daily basis. This means that capacity and all registered hours will be summed and locked for each day, before being compared and calculated.

NB: Daily data grouping will be most precise if your company has a strict work schedule where employees work their expected capacity each day. For a more flexible work schedule, we recommend using weekly or monthly data grouping.

–––

___annual-leave___

Annual Leave (Vacation)

Annual leave is paid time of work granted by employers to the employees to be used for whatever the employee wishes. Most countries have a minimum number of annual leave days depending on the country's labor laws.

Logging annual leave

Annual Leave = all hours logged on a tag connected to the «Annual Leave» timebank type

Annual leave is logged in hours and converted to days based on the following calculation:

  • If total amount of annual leave logged on a given day is 50% or less of the user's capacity. The hours will count as 0.5 days when subtracting from the annual leave balance.
  • If total amount of annual leave logged on a given day is more than 50% of the user's capacity. The hours will count as 1 day when subtracting from the annual leave balance.

Initial annual leave balance

Initial annual leave balance is the number of annual leave days available when setting the start date of the timebank. It will work as the starting point for future annual leave calculations.

Annual leave balance

Annual leave balance is the number of annual leave days available. The balance will increase when annually added leave is applied, and subtracted when logging annual leave on the timeline.

Annually added leave

Annually added leave is the number of days that will be added to the annual leave balance on a chosen date each year. It can be tailored as a workspace default, or customised for a single user.

Month for added leave balance

Month for added leave balance is the month annual leave is added to the user's leave balance. Typically set to January 1st, or June 1st.


–––

___purchased-leave___

Purchased Leave

Purchased leave is a voluntary agreement where employees may purchase additional leave. Hours logged on a tag connected to the timebank type «purchased leave» is subtracted from the user's time balance.

–––

___sick-leave___

Sick Leave

Sick leave is paid time off that employees can use to address their health and safety needs without reducing their time balance. Hours logged on a tag connected to the timebank type «sick leave» is included in the total amount registered hours for the given period.

–––

___other-leave___

Other Leave

Other leave is paid time off related to special occasions that does not fit the other timebank types. This can be study leave, parental leave e.g. Hours logged on a tag connected to the timebank type «other leave» is included in the total amount of registered hours for the given period.

–––

___payout___

Payout

Payout is used when employees wish to reduce their time balance manually. Typically by getting paid relative to the total amount of hours subtracted from the time balance. Admin and managers can complete a payout by pressing the «payout» button in the timebank dashboard.

PRO TIP: If a user wants to take unpaid leave, the user can track it as purchased leave and an admin can complete a payout with a negative amount. This will result in an unchanged time balance, and the negative payout reflects a reduction in salary.

–––

___time-balance___

Time Balance

Time balance represents the difference between the number of hours and employee has worked and the number of hours expected by the company. The time balance is a running total dependent on overtime, extratime, minustime, purchased leave and payout. The starting point for the time balance is the initial time balance specified on the starting date for the timebank.

Time Balance = Overtime + Extratime - Minustime - Purchased Leave - Payout

Timebank

Oher relevant articles from our Knowledge Base

Set up Timebank

In this article, we will cover how to set up the timebank and tailor it around your company's workflow.

Explore
Can’t find what you’re looking for?