Prorated Salary MOM

Prorated Salary Formula:

\[ \text{Prorated Salary} = \left( \frac{\text{Gross Salary}}{\text{Days in Month}} \right) \times \text{Days Worked} \]

Prorated Salary:

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1. What is Prorated Salary?

Prorated salary refers to the amount of salary calculated based on the actual number of days worked in a pay period, rather than the full monthly salary. This is commonly used when employees join or leave mid-month in Malaysia, following MOM guidelines.

2. How Does the Calculator Work?

The calculator uses the prorated salary formula:

\[ \text{Prorated Salary} = \left( \frac{\text{Gross Salary}}{\text{Days in Month}} \right) \times \text{Days Worked} \]

Where:

Gross Salary — Employee's full monthly salary in MYR
Days in Month — Total number of days in the month (typically 28-31)
Days Worked — Actual number of days the employee worked

Explanation: The formula calculates the daily rate by dividing the gross salary by total days in month, then multiplies by 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. It's essential for payroll processing when employees start or leave mid-month.

4. Using the Calculator

Tips: Enter gross monthly salary in MYR, total days in the month (typically 30), and actual days worked. All values must be valid (salary > 0, days between 28-31, worked days ≤ month days).

5. Frequently Asked Questions (FAQ)

Q1: What's the standard number of days to use for a month?
A: While months have 28-31 days, many companies use 30 days as standard for proration calculations unless specified otherwise in employment contracts.

Q2: Does this include public holidays?
A: Public holidays during employment period should typically be paid if they fall on working days, but this depends on company policy and employment terms.

Q3: How does this apply to probation periods?
A: The same proration method applies regardless of employment status (probation or confirmed).

Q4: What about employees who work part-time?
A: For part-time employees, proration should be based on their agreed working days/hours, not calendar days.

Q5: Is this calculation MOM-compliant?
A: Yes, this follows Malaysia's Ministry of Human Resources (MOM) guidelines for salary proration, but always check your specific employment contract terms.