How does the "Prorate employee mid-period Package increases" calculation setting work?

How does the "Prorate employee mid-period Package increases" calculation setting work?

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This feature is available on all Deel Local Payroll powered by payspace
Navigate > Config > Payroll > Payroll Config > Calculation Settings


When this Calculation Setting is enabled and a mid-period Pay Rate increase is applied, the employee’s package will be calculated based on the number of days worked under the old and new package values, using the company’s selected proration method.

The Payslip Information section on the Edit Payslip screen will display a breakdown of how the salary was prorated for the period.