A named rate matrix can be created for each Job Category with a Base Rate and Margin. Multiple rate types can be defined and each rate matrix has a start date which enables better management of rate changes.

Navigate to the Rates page in the framework record. Current (in use) rate matrixes are displayed. The rates are sorted by Job Category then grouped by Rate Category. The rates can be reformatted and filtered by using the formatter tool. Columns can be sorted into alphabetical or date order by clicking on column headers.

User can select, add, update, delete and uplift rates from this segment.

## Creating a Rate Matrix

To create a new rate matrix, select ‘Add/Update Rates’ and complete the information:

Set the Job Category and a Rate Category and Band if required. An effective start date should be entered and a Base Rate and Margin Value (if not pre-populated from the default rates). The system allows the user to decide whether the Margin Value is used as a ** Percentage** or as a

**. Select the required option using the Margin Basis code group.**

*Mark-up*The Rate Matrix allows the user to define ** Rate Type** pay rates e.g. Basic, Nights, O/T1 etc. for the Job Category. The pay and charge rates for each Rate Type will be set here.

## Creating a Basic rate

Set the Basic Pre AWR PAYE pay rate for the Candidate. (**Note:** These may be pulled through from the Framework default rates although can be overwritten). Set profit by using the Margin Value and a Margin Basis. Set a start date for the rate.

**Note:** It is not possible to have overlapping rate matrix for the same Job Category/Rate Category/Band.

## Pension Contribution

All Charge Rate calculations look to the Pensions Contributions field held in Application Settings and include this in the calculations. Charge Rate is now calculated as follows: -

**Base Rate + (Holiday Pay + NI) + Pension Contribution (Base Rate * Pension contribution %) + Margin = Charge**

This is applicable on the Rate Matrix page and when using the Margin Calculator.

Pension contribution is set in Application Settings (using the Adapt Manager Profile) as a percentage. It is set to 1% as default. The assumption is that the agency’s payroll will handle all the actual values. If an agency does pay a pension contribution that is based on holiday pay, they would need to increase their value in application settings from 1 to 2 % for instance.

**Note:** This calculation is a forecast for the agency only. Adapt does not perform the government minimum checks and the pension contribution is calculated on basic pay, which is not inclusive of holiday.

## Examples of Basic rate and Margin calculations

**Example 1.** In this example, we are setting the hourly **Pre AWR PAYE Pay** at £10 and the **profit margin value to 10 using percentage, so 10%.** Add the Rate Type, and the system will calculate as follows:

If a Candidate is Non-Paye then the agency will pay them a rate of pay inclusive of holiday and NI contributions. This is also the **total cost to the agency** for each Candidate.

**Pre AWR PAYE Pay****rate**+ (NI/PRSI + Holiday Pay) =**Pre AWR Non-Paye Pay****In this example 10 + (**1.54**+ 1.21) = 12.75**

**Note:** NI/PRSI is set as 13.8 and Holiday pay as 12.07 in the administrator profile. Hourly rates are therefore; Holiday = 10 * 12.07% = 1.21, NI/PRSI = (10 + 1.21) = 11.21 * 13.8% = 1.54

The total Charge to the Client is calculated as follows:

**Total Cost to the agency (Pay rate +**NI/PRSI +**Holiday Pay) + Pension (Pay rate * pension contribution %) + Margin (Total cost to the agency**/ (100 – Margin%/100).

In this example:

**10 +**1.54**+ 1.21 = 12.75 +****10*1% = 0.1****12.85 / 0.9 = 14.28**

**Note:** Pension contribution is set as **1%** in the administrator profile.

**Margin %** is the percentage of the **Pre AWR Charge** that is profit, so:

**Pre-AWR Charge is 14.28 * Margin % 10% = Margin amount 1.428.**

This is the Charge to the Client and is calculated using Pre AWR PAYE pay+ Holiday + NI + Pension+ Margin

**Example 2. **In this example we are setting the hourly **Pre AWR PAYE Pay **at £15 and the** profit margin value to 8 using markup.** Add the Rate Type, and the system will calculate as follows:

If a Candidate is Non-Paye then the agency will pay them a rate of pay inclusive of holiday and NI contributions. This is also the **total cost to the agency** for each Candidate.

**Pre AWR PAYE Pay****rate**+ (NI/PRSI + Holiday Pay) =**Pre AWR Non-Paye Pay****In this example 15 + (**2.32**+ 1.81) = 19.13**

**Note:** NI/PRSI is set as 13.8 and Holiday pay as 12.07 in the administrator profile. Hourly rates are therefore; Holiday = 15 * 12.07% = 1.81, NI/PRSI = (15 + 1.81) = 16.81 * 13.8% = 2.32

The total Charge to the Client is calculated as follows:

**Total Cost to the agency (Pay rate +**NI/PRSI +**Holiday Pay) + Pension (Pay rate * pension contribution %) + Margin value**

In this example:

**15 +**2.32**+ 1.81 = 19.13 +****15*1% = 0.15****19.28 + 8 = 27.28**

**Note:** Pension contribution** **is set as **1%** in the administrator profile.

Please ask your Erecruit representative to set your pension rate, NI/PRSI and Holiday Pay values.

## Multiplier

The multiplier allows a user to boost the pay rate. For example, double time will be a multiplier of 2.

In the first example, we are setting the Basic rate at a multiplier of 1 x the Base Rate (Pre AWR PAYE Pay rate) so 10 x 1 = 10.

We can set an overtime rate of time and a half using the multiplier:

O/T1 has a multiplier of 1.5 so the Pre AWR PAYE Pay is calculated as:

10 x 1.5 = £15

In turn the charge rate is calculated as above.

## Plus

If a consultant would rather add an amount to a pay rate instead of a multiplier this can be done in the example of O/T2:

O/T2 has a ‘Plus’ of £7 so the Pre AWR PAYE Pay is calculated as:

10 + 7 = £17

In turn the charge rate is calculated as above.

## Overwriting Pay and Charge Rates

Users also have the option to overwrite any of the fields to their own values. If any of these fields are manually changed, all calculations based on that field will subsequently cease.

For example, the Basic Pre Awr PAYE Pay field is overtyped to be £15 (Base Rate is £10). Usually the Pre AWR Non-PAYE Pay and Pre AWR Charge fields are calculated based on this, but in this scenario they remain the same:

Alternatively when the Pre AWR Charge rate is overtyped, the PAYE and Non-PAYE pay rates remain the same:

To revert back to calculated fields, overtype one of the following fields with new values and enter:

Base Rate, Margin Value, Multiplier or Plus.