Payroll Processing > Frequently Asked Questions > How does the pro-rata calculation work?

Why is there a pro-rata percentage on my payslip?

A pro-rata percentage is calculated automatically for salaried employees whenever a payslip is not for a full month. This usually occurs in one of three situations:

  • The employee started employment during the month.
  • The employee’s service ended during the month.
  • The employee worked for a full calendar month but your pay frequency ends on a day other than the last day of the month.

How is the pro-rata percentage calculated?

SimplePay calculates the pro-rata percentage as days worked / working days in month x 100.

How do I change the pro-rata calculation used?

You may wish to pay an employee their full salary even though they did not work the full period. You can do this by overriding the pro-rata percentage to 100.

To override the pro-rata percentage, click on it and enter the percentage you would like the system to use.

Which items are pro-rated?

SimplePay currently only automatically applies the pro-rata percentage to an employee’s Basic Salary.

You can enable the pro-rata calculation for custom items that are Income, Allowance or Deduction items if they have been set up to with the Input Type as “Fixed Amount” or “Enter Amount Per Employee”.

More information on custom items can be found in the following article:

Payroll Setup > Company Setup > Custom Items

If any other system or custom items need to be pro-rated, you will need to manually calculate these and enter the relevant amount.

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