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Calculating Hourly Costs Based on Working Days
Calculating Hourly Costs Based on Working Days

Hourly costs are calculated by factoring in the exact number of working days each month for employees with fixed cost types.

Updated over a week ago

In Productive, the calculation of hourly costs is adjusted based on the actual number of working days in a given month.

This adjustment is important because the number of working days can vary due to differences in month length, starting days, and holidays.

How Does the Calculation Work?

For employees with "fixed" cost types—such as weekly, bi-weekly, monthly, and annually—their total cost is divided by the actual number of working days in that specific month.

This approach ensures that the hourly cost reflects the true distribution of working hours throughout the month, rather than assuming a standard 20 working days per month.

Viewing Hourly Cost Changes

To track how a person's hourly costs have changed over time, navigate to their profile and open the Cost Rates tab.

Here, you'll find an expandable table that shows the historical data for their hourly rates, based on the varying number of working days each month.

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