To calculate an employee's prorated salary, you must take into account these scenarios:
An employee who starts work after the 1st day of the month
An employee who resigns before the last day of the month
An employee who takes no pay leave of one or more days in the month
The salary proration calculation formula can be used in such situations:
[(Monthly gross rate of pay) / (Total number of working days** in that month)] x Total number of days the employee actually worked in that month.
** By default in Singapore, salary proration is calculated by working days.
Alternatively, you can use our very own Calculator to quickly calculate accurate salary proration for your employees. 😁
How Does Salary Proration Get Automatically Calculated?
In order for salary proration to be automatically calculated for employees when you are processing payroll, you'll have to ensure that the following is keyed in accurately:
Hired Date (Profiles > Employee Listing > Employee Details)
Job Details are filled in accurately with the employee's Job Start Date
The system utilizes the Job Start Date in an employee's current job details to prorate salaries for employees in the system based on when their new job commences.
Please ensure that this section has been keyed in accurately.
You can learn more about how to populate the Current Job Details through this guide here (refer to the adding job cards section for a full breakdown of what needs to be keyed in for a job card in the system):