Skip to content
  • There are no suggestions because the search field is empty.

How is a ProPay calculated when the budget is in hours?

Walk through the math with a worked example so you know exactly what's earned.

Purpose

This article shows you exactly how Protiv calculates a bonus when a job has an hours-based budget.

You'll see the formula, walk through a real example, and understand why a ProPay pays out the way it does.

When To Use This

Use this when:

  • You set up a job with budget type = Hours
  • A worker asks "how was this bonus calculated?"
  • You want to explain ProPay math to a new manager

The Formula

For an hours-based ProPay, Protiv calculates the bonus like this:

Saved hours = Budget hours - Actual hours
Saved labor cost = Saved hours × wage rate
Bonus pool = Saved labor cost × split_job_savings %
Worker bonus = Bonus pool × pool split for that role

That's it. Three steps to a paycheck.

Worked Example

Job: Install fence at 123 Main St.

Budget

  • Budget type: Hours
  • Budget hours: 40
  • Crew: 2 workers at $25/hr each ($50/hr combined wage rate)

Actual

  • Crew finishes the job in 30 hours
  • Saved hours = 40 - 30 = 10 hours

Saved labor cost

  • 10 saved hours × $50/hr combined wage = $500 saved

Split job savings

Your org config splits savings 50/50 between the company and the workers.

  • Worker share = $500 × 50% = $250

Bonus pool split

Your bonus pool is configured:

  • Crew: 70%
  • Crew lead: 20%
  • Manager: 10%

The $250 worker share splits like this:

Final bonus per worker

The two crew members split the $175 crew share equally (using equal_weighted distribution):

  • Worker A: $87.50
  • Worker B: $87.50
  • Crew lead: $50
  • Manager: $25

That's the full math.

When Hours Budget Is the Right Choice

Use hours budget when:

  • You estimate jobs in labor hours
  • Wage rates are reasonably consistent across the crew
  • The job has a clear "we expect X hours" expectation

Don't use hours budget when:

  • You bill customers a flat contract price (use contract_price instead)
  • Pay rates vary widely across the crew (consider labor_budget)
  • Work is measured in units like square feet (use rate)

What Affects the Final Number

Several things can change what lands on the bonus statement:

  • Drive time — May be excluded from actual hours per your config
  • Overtime adjustments — One-off OT corrections can flow through to the bonus
  • Disqualifiers — A failed safety disqualifier can prevent the bonus from paying
  • Penalties — Customer complaints or quality issues can reduce the bonus
  • Retention days — A portion may be held back per role
  • Waiting period — Bonus may sit in "held" status before becoming payable

Common Mistakes & How To Fix Them

  • Bonus is smaller than expected Check for active penalties, deductions, or split job savings settings. Look at the ProPay detail page for the full breakdown.

  • Bonus shows $0 Verify the ProPay status is approved and there are no failed disqualifiers.

  • Numbers don't match what the worker sees on mobile The mobile app shows estimated bonus before retention. The statement shows what's actually paying out.

  • How is a ProPay calculated? (Contract Price budget type)
  • What are the 4 bonus distribution types?
  • What are disqualifiers and penalties?
  • How do bonus pools work?