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Laura Weir

Pro Rata Salary Calculations

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Hi

I have an employee who received a pay rise effective on the 17th May.  So far I have 3 different methods of calculating his monthly salary and they all have different totals.

Is there a standard calculation that should be used to pro rata a payrise received half way through the month?

Thanks.

Laura

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    Hi Laura,

    The standard method of calculating a pro-rata salary for a leaver is to:

    Divide the employee’s annual salary by the number of pay periods in the year. Then, divide this number by the number of days in the pay period – this gives you the employee’s daily amount. You can then multiply this rate per day by the number of days worked in the period you’re paying the employee for.

    If this has answered your question, please click on the 'This helped me' link below.

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