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. 😁