How to Calculate Pro Rata Pay

Written by amy kuncaitis
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How to Calculate Pro Rata Pay
Calculate pro rata pay. (Paying Bills image by ne_fall_photos from Fotolia.com)

According to TheSite.org, pro rata pay is a Latin term meaning: "Portion of" or "Proportionally." Pro rata pay is often used as a pay scale for part-time employees doing the same job as their full-time colleagues. When an employer establishes a pro rata pay scale, the part-time employee will still maintain all the full-time benefits, such as holidays and parental leave, but will be paid pro rated according to the hours worked.

Skill level:
Moderately Challenging

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Instructions

  1. 1

    Take the full-time annual salary, and divide by 52. Once you have established where the pro rated employee will be placed on the pay scale, you will have a full-time annual salary to pro rate from.

    Example: £29,250 (annual full time salary) / 52 (weeks annually) = £562.40 (salary per week)

    How to Calculate Pro Rata Pay
    divide annual salary by 52 (Mathematik image by bbroianigo from Fotolia.com)
  2. 2

    Divide answer in Step 1 by the full-time number of hours per week. This answer is the hourly rate. Example: £562.40 / 40 (full-time hours per week) = £14.0 (hourly rate)

  3. 3

    Multiply the hourly rate by the number of hours the pro rated employee will be working per week. This is the weekly salary for the pro rated employee.

    Example: £14.0 (hourly rate) x 20 (weekly hours) = £281.10 (pro rata weekly pay)

  4. 4

    Multiply the pro rata weekly pay by the number of weeks per year the pro rated employee will work.

    Example: £281.10 (weekly pro rata pay) x 50 (weeks working per year) = £14,059.5 (annual salary)

  5. 5

    Divide the pro rata annual salary by 12 to get the monthly salary.

    Example: £14,059.5 (annual salary) / 12 = £1,171.60 (monthly salary)

Tips and warnings

  • When calculating pro rata salary, keep in mind holiday pay and benefits are figured separately.

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