How does the System Calculate Prorate Salary for those Employees Who Joins or Resigns in the Middle of the Month?

Created by rotcana Choong, Modified on Tue, 9 Jun at 9:09 AM by rotcana Choong

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The system calculates prorated salary based on the employee’s basic rate divided by the total days in the calendar month, multiplied by the actual working days.


Formula:

Prorated Basic Salary = Basic Salary ÷ Total Days in Month × Working Days


Example:

A joined the company on 18/12/2024 with a basic salary of RM5,000.

  • Working days: 14 days (18–31 December)

  • Calculation: RM5,000 ÷ 31 × 14 = RM2,258.06

Therefore, A’s prorated salary for December is RM2,258.06, based on the number of days worked in the month.