1. What is Prorated Salary?

Prorated salary is the amount of compensation a worker receives based on the actual number of days worked in a pay period, rather than the full monthly salary. This is commonly used for new hires, resignations, or unpaid leaves in Malaysia.

2. How Does the Calculator Work?

The calculator uses the prorated salary formula:

Where:

• Gross Salary — Monthly base salary in MYR
• Overtime — Total overtime payments in MYR
• Days in Month — Total working days in the month (typically 26-31)
• Days Worked — Actual number of days worked

Explanation: The formula calculates the daily rate including overtime, then multiplies by the actual days worked.

3. Importance of Prorated Salary Calculation

Details: Accurate prorated salary calculation ensures fair compensation for partial month work and compliance with Malaysia's Employment Act 1955.

4. Using the Calculator

Tips: Enter all values in MYR currency. For months with public holidays, you may need to adjust the "Days in Month" accordingly based on company policy.

5. Frequently Asked Questions (FAQ)

Q1: Is overtime included in prorated salary calculations?
A: Yes, this calculator includes overtime payments in the proration calculation as per common Malaysian payroll practices.

Q2: How are public holidays treated in prorated salary?
A: This depends on company policy. Some include public holidays as paid days, others exclude them from the calculation.

Q3: What's the standard number of working days in Malaysia?
A: Typically 26 days (excluding weekends), but varies by company. The Employment Act defines 26 days as the minimum paid days per year.

Q4: Should EPF and SOCSO be deducted from prorated salary?
A: Yes, statutory deductions like EPF and SOCSO are calculated based on the prorated salary amount.

Q5: How to handle proration for part-time workers?
A: The same formula applies, but ensure "Days Worked" reflects their actual working days and "Gross Salary" is their full-time equivalent.