1. What is Prorated Salary?

Prorated salary refers to the amount of compensation paid to an employee based on the actual number of days worked rather than the full salary period. In Singapore, 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 standard prorated salary formula:

Where:

• \( Annual \) — Annual salary in Singapore dollars (SGD)
• \( Days Worked \) — Number of days the employee actually worked

Explanation: The formula calculates the daily rate by dividing the annual salary by 365 days, then multiplies by the actual 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 Singapore's employment regulations. It's essential for payroll processing when employees have incomplete work months.

4. Using the Calculator

Tips: Enter the annual salary in SGD and the number of days worked. The calculator will compute the prorated amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 365 instead of working days?
A: Singapore's Employment Act typically uses calendar days (365) for proration to account for all days including weekends and holidays.

Q2: How is prorated salary different from pro-rata bonus?
A: Prorated salary calculates partial-month pay, while pro-rata bonus calculates partial-year bonus based on months worked.

Q3: What about leap years?
A: For leap years, you may use 366 days instead of 365 for more precise calculation, though 365 is the standard.

Q4: Is CPF contribution calculated on prorated salary?
A: Yes, CPF contributions are based on the actual salary paid, including prorated amounts.

Q5: Can this be used for part-time employees?
A: Yes, but ensure you're using the correct annualized equivalent salary for part-timers.