How does Payroll prorate salary for a leaving/new employee?

The proration of the staff’s salary is based on the number of working days that the staff worked. If the staff works less than the stipulated working days (i.e. no pay leave, joined/ left the company halfway during the month), their salary will be prorated using the formula below.

                                     no of days worked
Proration of salary =   -----------------------------------        x   Basic Pay                (incomplete month)     total no of working days


A public holiday is considered a worked day. So for example in the month of March 2016, there will be 23 working days in total (with the Good Friday holiday included), and the holiday will be counted as a day worked.

If an employee with Basic Pay of $2300 joins on 18 March 2016 (Friday), the total days he would have worked would be 10 (9 + 1 Public Holiday). The same logic applies to employees who are leaving as well. 


                                                     9   + 1
The pay he would receive  = -----------------------------------        x  2300



                                        = 1000


This is a fixed configuration in the system. If you would like to make changes, you would need to make a manual deduction for the affected employee in the Employee Pay information page. 

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