1. What is Prorated Salary?

Prorated salary refers to the amount of compensation a worker receives based on the actual number of days worked rather than the full salary period. In the Philippines, the standard work year is considered to be 313 days (excluding weekends and holidays).

2. How Does the Calculator Work?

The calculator uses the prorated salary formula:

Where:

• \( Annual \) — Annual salary in Philippine Pesos (PHP)
• \( Days \) — Number of days worked (maximum 313)

Explanation: The formula calculates the daily rate by dividing the annual salary by 313 working days, then multiplies by the actual number of days worked.

3. Importance of Prorated Salary Calculation

Details: Accurate prorated salary calculation is crucial for partial month payments, new hires, resigning employees, and any situation where an employee doesn't work a full pay period.

4. Using the Calculator

Tips: Enter annual salary in PHP and number of days worked (1-313). The calculator will compute the prorated amount based on the standard 313-day work year in the Philippines.

5. Frequently Asked Questions (FAQ)

Q1: Why 313 working days?
A: In the Philippines, the standard work year is calculated as 365 days minus 52 weekends (104 days) and 10 regular holidays, resulting in 313 working days.

Q2: What if the employee worked more than 313 days?
A: The calculator limits input to 313 days as this represents a full work year. Overtime beyond this would be calculated separately.

Q3: Does this include 13th month pay?
A: No, this calculates base salary only. 13th month pay is calculated separately as 1/12 of annual basic salary.

Q4: How is this different from monthly proration?
A: Monthly proration typically uses 22 working days per month, while this annual method provides more precise calculation based on the full work year.

Q5: Is this applicable to all employees?
A: This calculation is standard for monthly-paid employees. Daily-paid workers have different computation methods.