Pro Rata Wage Calculator
Understanding Pro Rata Wage
A pro rata wage refers to the salary an employee receives when they work for only a portion of a full year. This is common for employees who start or leave a job partway through the year, or for those who take extended leave. The "pro rata" term comes from Latin, meaning "in proportion." Essentially, your pay is calculated proportionally to the time you actually work.
The calculation involves determining the full annual salary, then figuring out the employee's entitlement based on the number of weeks they are contracted to work versus the number of weeks they actually work.
How it works:
- Annual Base Salary: This is the total amount you would earn if you worked for the entire year.
- Working Weeks Per Year: This represents the standard number of weeks an employee is expected to work in a full year. This often accounts for holidays and other leave. For example, a contract might specify 48 working weeks per year, implying 4 weeks of paid holiday.
- Weeks Actually Worked: This is the specific number of weeks the employee has worked during the period being calculated.
The formula used by this calculator is:
Pro Rata Wage = (Annual Base Salary / Working Weeks Per Year) * Weeks Actually Worked
This formula first calculates the weekly rate based on the contracted working weeks and then multiplies it by the actual weeks worked to give the proportional salary.
Example:
Let's say an employee has an Annual Base Salary of £50,000. Their contract states they work 48 Working Weeks Per Year. If they only work for 30 Weeks Actually Worked during a particular year (perhaps they joined late or left early), their pro rata wage would be calculated as follows:
Weekly Rate = £50,000 / 48 weeks = £1,041.67 per week (approximately)
Pro Rata Wage = £1,041.67 * 30 weeks = £31,250.00
Therefore, their pro rata wage for that year would be £31,250.00.