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Pro-Rated Salary Auto-Payments

Enable pro-rated auto-payments for salaried employees who start or end their employment part-way through an active pay cycle. This ensures accurate payroll calculations based on actual worked hours.

Updated over 2 months ago

Configuration Requirements

For this feature to function correctly, ensure the following fields are set up in the employee’s profile:

  1. The employee must be Salaried.

  2. ‘Contracted Weekly Hours’ must be specified.

  3. An ‘Employment Start/End Date’ must be entered and must fall part-way through an active pay cycle.

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Additionally, your salary allocation settings should be configured as follows:

  • Set to: ‘Split evenly by rostered days’

  • Navigate to Settings > General Settings to adjust this setting.

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Note: While we plan to extend compatibility to all salary allocation settings, this is the current required setting.


How the Pro-Rated Payment Works

Example Scenario:

  • A salaried employee is contracted to work 38 hours per week and earns £1000 per week.

  • They leave midway through the pay cycle and are only rostered to work 19 hours.

  • The pro-rated payment is calculated based on worked hours:

    • Since the employee worked 50% of their contracted hours, they receive 50% of their salary ($500).


Impact on Rosters, Timesheets, and Payslips

Rosters & Timesheets:

  • Roster Costing:

    • Calculated as a percentage of the employee’s total salary, based on rostered hours vs. worked hours.

  • Timesheets:

    • Reflect the actual worked hours for payment accuracy.

    • Example: If an employee was rostered for 24 hours but worked 30 hours, they will be paid based on the 30 hours worked when pro-rated.

Payslips:

  • The employee’s payslip will always match the timesheet cost, ensuring consistency in payroll calculations.


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