1. What is Prorated Salary?

Prorated salary refers to the amount of compensation calculated based on the actual number of days worked rather than the full salary period. In Malaysia, this is commonly used for partial month payments when employees join or leave mid-month.

2. How Does the Calculator Work?

The calculator uses the prorated salary formula:

Where:

• \( Annual \) — Annual salary in Malaysian Ringgit (MYR)
• \( Days \) — Number of days to be paid

Explanation: The formula divides the annual salary by 365 days to get the daily rate, then multiplies by the number of days worked.

3. Importance of Prorated Salary Calculation

Details: Accurate prorated salary calculation ensures fair compensation for partial work periods and compliance with Malaysian labor laws.

4. Using the Calculator

Tips: Enter annual salary in MYR and number of days to be paid. All values must be valid (salary > 0, days between 1-366).

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of working days?
A: Malaysian labor practices typically use calendar days (365) for proration to simplify calculations.

Q2: What about leap years?
A: While 366 days could be used for leap years, 365 is standard practice in Malaysia for consistency.

Q3: Does this include EPF and SOCSO deductions?
A: No, this calculates gross prorated salary only. Statutory deductions would be calculated separately.

Q4: Is this method legally required in Malaysia?
A: While not legally mandated, this is the most common and accepted method of proration in Malaysia.

Q5: How to handle month-end joiners/leavers?
A: For employees joining/leaving mid-month, count all calendar days from start date to end date inclusive.