How does the system prorate an employees' salary?
This feature is available on all Deel Local Payroll powered by payspace payroll editions
The system prorates the Basic Pay based on an employee's employment, termination or suspension dates. The proration calculation can be configured using the following calculation settings.
Navigate > Config > Payroll > Payroll Config > Calculation Settings > Proration
Do not prorate
Calculation 1
Example - Employee terminated on 15 June 2025.
Pay Rate: 20 000.00
Working Days: Monday to Friday [5 days]
Calculation breakdown
Part 1 = 20 000 [Package] / 30 (full month - June) = 666.667
Part 2 = 666.667 X 15 [Employee days worked, incl. Weekends] = 10 000.005 (rounded to R10 000)
Calculation 2
Example - Employee terminated on 15 June 2025.
Pay Rate: 20 000.00
Working Days: Monday to Friday
Prorate by this many days: 24
Calculation breakdown
Part 1 = 20 000 [Package] / 24 = 833.33
Part 2 = 833.33 X 15 [Employee days worked, incl. Weekends] = 12 500.00
Calculation 3
Example - Employee terminated on 15 June 2025.
Pay Rate: 20 000.00
Working Days: Monday to Friday
Actual Working Days per Period [1 to 30 June 2025 - excl. Weekends]: 21
Calculation breakdown
Part 1 = 20 000 [Package] / 21 = 952.38
Part 2 = 952.38 X 10 [Employee days worked] = 9523.80
Calculation 4
Example - Employee terminated on 15 June 2025.
Pay Rate: 20 000.00
Working Days: Monday to Friday
Days per Period: 21.67
Calculation breakdown
Part 1 = 20,000 [Package] / 21.67 = 922.93
Part 2 = 922.93 X 10 [Employee days worked] = 9229.35
Calculation 5
Example - Employee terminated on 15 June 2025.
Pay Rate: 20 000.00
Full roster period: Full month of June 2025 (30 days).
Working days per roster: 15 days
Example of roster upload
Calculation breakdown
Part 1 = 20 000 [Package] / 30 (full roster period) = 666.667
Part 2 = 666.667 X 15 [roster days worked by employee] = 10 000.005 (rounded to R10 000)
Calculation 6
Applying this proration calculation method will not prorate an employee’s package but will show the working days on the Pay Rate Details screen necessary for calculating leave days.
Important
If any of the above proration settings are changed, it will affect all employees' Basic Pay component calculations for the current open period (i.e. newly onboarded, terminated, or suspended).
Related Articles
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