# Payroll component formulas

> How to write, test and fix the formulas in your payroll's salary components.

Source: https://resources.aragro.com/en/payroll-formulas/
Language: en

Relative links and media resolve against the source URL.

> **Availability:** To use Payroll, your account must have this feature enabled and your role must have the corresponding permissions. If the option does not appear, [contact Aragro support](mailto:hola@aragro.com).

Each payroll structure is made of **salary components**: earnings (salary, seventh-day pay, bonuses), deductions (social security, income tax) and totals. A component can be a fixed amount or a formula. This guide explains how to write those formulas, how to test them before completing the payroll, and how to fix the most common errors.

## Before you start

- Have your [employees](/en/employees-guide/) and their payroll structure ready. If you don't have one yet, see the [Payroll FAQ](/en/payroll-faq/).
- Write the rule first in words or in Excel, with a real employee as an example and the result you expect. For example: “Juan attended 10 days; his bonus should be Q83.33.” That example is the fastest way to check later that the formula is right.

## How a formula is built

### Name and abbreviation

Each component has a **name** (shown on the payroll and in reports) and an **abbreviation**. The abbreviation is what you use to refer to that component inside other formulas, for example `Vtrabajo` or `SeptPlanilla`.

- Use short abbreviations without spaces or accents.
- Type them in formulas exactly as you defined them.
- Order the component list logically (base data, earnings, deductions and totals) so it is easy to review from top to bottom.

### System variables

Aragro calculates each employee's data for the period from work orders and absences. These are some of the most used variables; the full list appears in the formula editor's **Available variables** panel.

| Variable | What it represents |
| --- | --- |
| `attendedDays` | Days attended in the period. |
| `dailyWageList` | List of the period's day-wage payments, one per day. |
| `pieceworkWages` | List of the period's piecework payments. |
| `overtimePay` | Overtime pay. |
| `paidLeaves` | Days of paid leave. |
| `holidays` | Holidays in the period. |
| `holidayPay` | Pay for the period's holidays. |
| `activityDays` | Days worked per activity. Read it with `GETNUM(activityDays, 'code')`, using the activity's code. |

Variables that are **lists** (for example, `dailyWageList` and `pieceworkWages`) are used inside functions such as `SUM` or `COUNT`, not on their own.

### Functions and operators

The editor shows the available functions. The most useful for payroll are:

- **Logic:** `IF`, `AND`, `OR`, `NOT`, `SWITCH`, `CASE`
- **Numbers:** `MIN`, `MAX`, `SUM`, `AVG`, `COUNT`, `ROUND`, `ROUNDUP`, `ROUNDDOWN`, `ABS`, `GETNUM`
- **Lists:** `FILTER`, `MAP`, `ALL`, `ANY`, `PLUCK`
- **Comparison:** `<`, `>`, `<=`, `>=`, `=`

Use a period for decimals (`119.21`) and write percentages as decimals: 4.83% is written `0.0483`.

## Examples

These examples come from agricultural payrolls in Guatemala. Amounts and rates are examples only: confirm current values with your accountant before using them.

### <span id="incentive-bonus-decree-37-2001-per-fortnight"></span>Incentive bonus (Decree 37-2001) per half-month payroll period

Pays Q8.33 per day attended, rounded up, with a maximum of Q125 per half-month payroll period. `Asistencia` is an earlier component equal to `attendedDays`.

```
MIN(ROUNDUP(8.333333333333333 * Asistencia, 0), 125)
```

### Additional piecework bonus

Pays the difference when piecework earnings plus overtime exceed the guaranteed wage (`Valor_trabajo`). If they don't, it pays zero.

```
IF((SUM(pieceworkWages) - Valor_trabajo) + overtimePay <= 0, 0, (SUM(pieceworkWages) - Valor_trabajo) + overtimePay)
```

### Days worked

Counts the days on which the employee had a day-wage payment greater than zero.

```
COUNT(FILTER(dailyWageList, x, x > 0))
```

### Employee social security (IGSS)

Applies the employee contribution to the earnings it covers.

```
(Vtrabajo + SeptPlanilla + Asuetoplanilla) * 0.0483
```

## Practice with the calculator

Enter an employee's days, wage and piece-rate earnings to see their totals with the formulas in this guide. To test your own formulas, open **Try your own formulas**: the result updates instantly and, if there is an error, it explains how to fix it.

<formula-calculator lang="en" data-pagefind-ignore="all">
<p>The interactive calculator is available in the web version of this guide.</p>
</formula-calculator>

## Test before completing

1. Create the payroll entry in **Draft** status and click **Generate Payroll**.
2. Find your example employee and compare each component with the result you expected.
3. To review many employees, export the entry (**Payroll Entries → Export**) and compare it in Excel.
4. Fix the formula, generate again, and repeat until everything matches.
5. Check the entry's name too: a completed entry can no longer be renamed.
6. Only then click **Complete Payroll Entry**. Fixing a completed entry means reverting it, which requires permissions and leaves it in Reverted status.

## Common errors

| What happens | Cause | Fix |
| --- | --- | --- |
| Syntax error in a comparison | `=<` or `=>` was typed. | Type `<=` and `>=`. |
| “If has too few operands” | An `IF` is missing one of its three parts, or test text was left inside the formula. | Always use `IF(condition, value if true, value if false)` and delete any text that isn't part of the calculation. |
| “Too many closing parentheses” | A parenthesis was closed too early, for example `ROUNDUP(x), 0)`. | Count the parentheses: `ROUNDUP(x, 0)`. |
| A variable or abbreviation isn't recognized | It is misspelled or doesn't exist in that structure. | Copy it from the **Available variables** panel or the component list. |
| The result is negative | The rule doesn't cover a case, for example an employee with few days. | Don't fix it with `ABS()` alone: it flips the sign and affects every component that uses that result. Use `MAX(..., 0)` only if the rule really is “never less than zero.” Otherwise, use your example to decide what should be paid in that case and adjust the formula. |

If you have a question this guide does not answer, contact us in the Aragro chat or write to [hola@aragro.com](mailto:hola@aragro.com).