Weekly Wage and How it is Calculated
The basic weekly wage is an important value used for the calculation of Social Security Contributions as well as using it to report in the FS3 and end-of-year submission files. It is calculated differently for employees on fixed or variable hours.
Employees Working Fixed Hours
For full-time employees or part-time employees with fixed hours, the weekly wage is averaged out based on their salary in their agreement.
For example, if someone has an annual basic salary of €15000, we would divide it by 52 weeks to get a weekly wage of €288.46.
Similarly, for someone earning a monthly amount (e.g. €1000), we would multiply this by 12 months and divide it by 52 weeks to get the weekly wage (in this example, €230.77)
Employees Working Variable Hours
For employees working variable hours, the weekly wage is calculated with each payroll. This is done by taking the Basic Pay and dividing it by the number of weekly contributions to be paid.
For instance, if an employee earns €230 and you mark 2 weeks worked (for which contribution is to be paid), then the weekly wage would be calculated as €230 / 2 = €115