How does the system prorate an employees' salary?

How does the system prorate an employees' salary?

The system prorates the Basic Pay based on an employee's employment, termination and/or suspension dates. The proration calculation can be configured using the following company settings. 

      Navigate > Configuration > Payroll > Payroll Config > Calculation Settings > Proration 
      
      

      

Examples - If an employee was terminated on 21 February 2023, what will the salary proration calculations look like per rule?  

If the "Prorate using working days instead of calendar days" setting is enabled, the calculation will divide the "Working Days" by the "Days Per Period"; the result will be multiplied by the "Package" amount: 15 (days worked)/21.67 (days per period) * R10000.00 = R 6922.01


If the "Prorate using working days instead of calendar days" setting is disabled, will display the "Instead of calendar days, prorate basic pay by this many days" field. The calculation will divide the calendar days worked in the specific month and the number of days inserted in the field against the setting (e.g. 30 days): 21 (days worked | terminated on 21 Feb 2023) /30 (days inserted) * R 10000 = R 7000.00

      


If the "Use the actual working days per period to prorate the salary instead of the days per period specified on the employee's pay rate screen" is enabled, the calculation will divide the "Working Days" by the "Actual Days In Period";  the result will be multiplied by the "Package" amount: 15 (days worked)/20 (days in February excl. weekends) * R 10000.00 = R 7500.00

      Note! If the second proration rule is enabled, it has to be done in conjunction with the first proration rule enabled.

Each calculation references the above figures as configured on the Pay Rate Details screen.

            Navigate > Employee > Payroll Processing > Pay Rate Details

            

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