1. What is Prorated Salary?

Prorated salary is a calculation that adjusts an employee's regular salary based on the number of days actually worked in a pay period, typically used for partial-month work periods.

2. How Does the Calculator Work?

The calculator uses the prorated salary formula:

Where:

• Monthly Salary — The employee's full monthly salary
• Days — Number of days actually worked in the month
• 30 — Standard number of days used for proration

Explanation: The formula calculates what portion of the monthly salary should be paid based on the proportion of days worked to the standard 30-day month.

3. Importance of Prorated Salary Calculation

Details: Accurate prorated salary calculation ensures fair compensation for employees who start, leave, or take unpaid leave during a pay period, maintaining payroll accuracy and compliance with labor laws.

4. Using the Calculator

Tips: Enter the monthly salary amount and the number of days actually worked (must be between 1-30 days). The calculator will compute the prorated amount.

5. Frequently Asked Questions (FAQ)

Q1: Why use 30 days instead of actual calendar days?
A: Many companies use 30 days as a standard for simplicity, though some may use actual calendar days for the month.

Q2: How does this differ from daily rate calculation?
A: Daily rate divides salary by working days, while proration divides by calendar days for proportional payment.

Q3: When is prorated salary typically used?
A: Commonly used for new hires, terminations, unpaid leave, or any partial-month work period.

Q4: Are there legal requirements for proration?
A: Labor laws typically require accurate proration but don't specify the method (30-day vs actual days).

Q5: How to handle months with 31 days?
A: Most companies still use 30 days for consistency, though some may use 31 when appropriate.