The Calculated Annualised Cost figure is an estimated figure and is used for benchmark purposes. If you enter an employee salary as a weekly, monthly or per annum value then the figure will be accurate.

However, if you enter salary as hourly or daily then the system uses a formula to calculate the annual cost which assumes 40 hours per week, 5 days per week and 260 working days per year.

As a result, if someone actually only works 37.5 hours a week and you have entered their salary as a per hour figure there will be some variance.