How to work out pro-rata

Written by yasiradnan94
1 February 2023

You may have heard of the term ‘pro-rata’, in particular relating to pay for employees. This article will explain what it means and how it is worked out.

What is Pro-Rata?

Pro rata work is the proportion of earnings based on a full time salary. For example, if a full time salary for a particular role at 40 hours a week is £20,000 and the employee is to work 20 hours then their pay would be £10,000.

Working out pro-rata salary and holiday

A basic calculation for pro-rata salary would be as follows;

Annual salary / full-time hours x actual hours

A part time employee would have holiday entitlement adjusted according to how much they work. The easiest way to working out pro rata holiday entitlement is to multiply the number of working days by 5.6. For example, if the staff work 3 days a week then their holiday entitlement is 3 x 5.6 = 16.8 days.

Holiday Pay Changes

If you engage part time workers, or staff who work irregular hours, on permanent contracts you need to be aware of new rules.

MTD simplification

A dramatic simplification of the MTD processes to be introduced – no EOPS; cumulative submissions each quarter; and restrictions.

Cash basis to replace accruals

Cash basis to replace accruals for the self-employed as standard tax reporting method for 2024-25 (first year of tax year accounting). From April 2024, as part of a move to simplify calculation of taxable profits for Making Tax Digital, all self-employed taxpayers and...

Related Posts

Holiday Pay Changes

Holiday Pay Changes

If you engage part time workers, or staff who work irregular hours, on permanent contracts you need to be aware of new rules.

We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.