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.
