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How does HRplus calculate salary proration for a salaried employee based on week days?

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When an employee receives a salary change or starts mid-month, HRplus calculates their prorated salary based on the number of weekdays worked in the pay period and the total hours assigned to the pay group.

Here's an example:

  • Monthly Salary: $11,333.34
  • Starting Date: May 15th, 2023
  • Prorated Salary for May: $6,405.80 (calculated based on weekdays)

Step-by-Step Calculation:

  1. Unit Rate:
    • The monthly salary is divided by the total hours in the pay group.
    • Example: $11,333.34 ÷ 173.33 hours = $65.39/hour.
  2. Daily Hours:
    • Calculate daily working hours by dividing the hours in the pay group by the total weekdays in the month.
    • Example: 173.33 hours ÷ 23 weekdays = 7.54 hours/day.
  3. Daily Rate:
    • Multiply the unit rate by the daily hours to get the daily rate.
    • Example: $65.39 × 7.54 = $492.75/day.
  4. Prorated Salary:
    • Multiply the daily rate by the number of working days the employee worked in the month.
    • Example: $492.75/day × 13 days (May 15th – 31st) = $6,405.80.

Monthly Hours Calculation:

The monthly hours in the pay group are calculated using the formula:
52 weeks × 40 hours (per week) ÷ 12 months = 173.33 hours/month.

This approach ensures that salary is accurately prorated based on the number of days worked in that period.

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