1. What is Pro Rata Salary?

Pro rata salary refers to the proportional payment amount calculated based on the actual hours worked compared to full-time hours. In Singapore, this calculation must account for CPF contributions and income tax deductions.

2. How Does the Calculator Work?

The calculator uses the pro rata formula:

Where:

• Gross Pay — Annual full-time salary in SGD
• Part-Time Hours — Actual hours worked per week
• Full-Time Hours — Standard full-time hours per week (typically 40)
• Income Tax — Estimated annual tax amount
• CPF — Calculated as 20% of pro rata gross pay

Explanation: The calculation first determines the proportional gross pay, then deducts taxes and CPF contributions to arrive at net pay.

3. Importance of Pro Rata Calculation

Details: Accurate pro rata calculations ensure fair compensation for part-time workers and help employers budget correctly for labor costs including CPF contributions.

4. Using the Calculator

Tips: Enter full-time gross annual salary, your actual working hours, standard full-time hours (default 40), and estimated income tax. CPF is automatically calculated at 20%.

5. Frequently Asked Questions (FAQ)

Q1: What's the standard full-time hours in Singapore?
A: While 40 hours/week is common, some companies use 44 or 48 hours. Check your employment contract.

Q2: Is CPF always 20% for pro rata calculations?
A: For employees, CPF contribution is typically 20% of wages, but rates may vary for different age groups or income levels.

Q3: How do I estimate my income tax?
A: Use IRAS' tax calculator or refer to previous year's tax assessment if your income is similar.

Q4: Does this include bonuses or other allowances?
A: This calculator uses base salary only. For comprehensive calculations, include all taxable components proportionally.

Q5: Is pro rata calculation legally required?
A: While not legally mandated, it's considered fair employment practice to pay part-time workers proportionally.