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 send use our very own Calculator to quickly calculate accurate salary proration for your employees. 😁