Employee's salary is pro-rated in the following scenarios :

  1. An employee who starts working after the 1st working day of the month.
  2. An employee who resigns before the last working day of the month.
  3. An employee who takes unpaid leave / no pay leave for one or more days in the month.

For the above scenarios Salary proration in such scenarios can be calculated as follows using incomplete month of work formula :

Note : total working days in the month depends on the no. of working days per week for the employee (eg. 5, 5.5 or 6 days work week).

(For proration scenario where an employee has salary increment effected after the 1st working day of the month, please refer to this link : Salary Increment Proration)

Did this answer your question?