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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

 

Public Holidays

Public holidays are counted as worked days.

For example, in March 2025, there are 23 working days in total, including Good Friday (a public holiday).

 

Example Calculation

An employee with a Basic Pay of $2,300 joins on 18 March 2025 (Tuesday).

  • Total working days in March: 23

  • Days worked (including 1 public holiday): 10 (9 + 1)

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

                                                        23

 

                                        = 1000

 

Important Notes

  • This is a fixed configuration in the system.

  • To make adjustments, you will need to perform a manual deduction in the Employee Pay Information page.

  • For employees joining mid-month:

    • Basic Pay and CPF contributions will be prorated.

    • If a Permanent Resident (PR) joins mid-month, CPF will be prorated based on the first-year CPF rate applicable to their age group.

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