Employee's salary is pro-rated in the following scenarios :
- An employee who starts working after the 1st working day of the month.
- An employee who resigns before the last working day of the month.
- 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)