1. What is the monetary cap if the wage period is not a calendar month?
If the wage period of an employee is not a calendar month, the monetary cap of $11,500 per month on keeping records of the total number of hours worked is calculated on a proportional basis.
Example 1:
The wage period of an employee is half-monthly, lasting from the 1st day to the 15th day and from the 16th day to the last day of a month. Taking the two wage periods in August as an example, the monetary cap applicable to this employee for the records of the total number of hours worked is calculated proportionally as follows:-
(a) Wage period from 1 to 15 August:
$11,500 X 15 days ÷ 31 days (i.e. the ratio that the period 1 to 15 August bears to August) = $5,564.52
- → If wages payable in respect of the above wage period is at $5,564.52 or above, the wage and employment records are not required to include the total number of hours worked in that wage period.
(b) Wage period from 16 to 31 August:
$11,500 X 16 days ÷ 31 days (i.e. the ratio that the period 16 to 31 August bears to August) = $5,935.48
- → If wages payable in respect of the above wage period is at $5,935.48 or above, the wage and employment records are not required to include the total number of hours worked in that wage period.
Example 2:
The wage period of an employee runs from the 16th day of each month to the 15th day of the following month. Taking the wage period of 16 August to 15 September as an example, the monetary cap applicable to this employee for the records of the total number of hours worked is calculated proportionally as follows:–
$11,500 X 16 days ÷ 31 days (i.e. the ratio that the period 16 to 31 August bears to August) + $11,500 X 15 days ÷ 30 days (i.e. the ratio that the period 1 to 15 September bears to September) = $11,685.48
- → If wages payable in respect of the above wage period is at $11,685.48 or above, the wage and employment records are not required to include the total number of hours worked in that wage period.
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