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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 this week

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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