Mid-Month Salary Formula:
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The Mid-Month Salary calculation determines the prorated salary for employees who start or leave mid-month. It ensures fair compensation based on actual days worked during a pay period.
The calculator uses the following formula:
Where:
Explanation: First calculates monthly salary by dividing annual pay by 12, then prorates based on days worked versus total days in month.
Details: Accurate mid-month salary calculation ensures compliance with labor laws, maintains employee satisfaction, and prevents payroll discrepancies.
Tips: Enter gross annual pay in dollars, actual days worked (must be ≤ total days in month), and total days in that month (typically 28-31).
Q1: Should weekends be counted in days worked?
A: Typically yes, unless the employee only works weekdays and started on a weekend. Follow your company's payroll policy.
Q2: How to handle months with 31 days vs 30 days?
A: Always use the actual number of days in the specific month being calculated (28, 29, 30, or 31).
Q3: What if the employee starts on the 1st but leaves mid-month?
A: The same calculation applies - days worked would be from the 1st to their last day.
Q4: Does this work for hourly employees?
A: No, this is for salaried employees. Hourly employees should be paid based on actual hours worked.
Q5: How to account for holidays during mid-month?
A: This depends on company policy. Some count holidays as worked days, others exclude them from calculations.