You’ve undoubtedly heard the term ‘pro rata’. But do you know exactly what it means and how to work out pro-rata pay for your employees?
In this article, we’ll be taking a look at the calculations you need to make, as well as other areas you need to consider when employing someone pro rata.
What is Pro Rata Pay?
Let’s start with a definition. In its most basic form, a pro rata salary is an amount of pay you quote an employee based on what they would earn if they worked full-time. For example, if an employee’s salary would be £20,000 pro rata in a 40-hour week, but they only work 30 hours a week, their annual salary would be £15,000.
So, someone who works ‘pro rata’ is getting a proportion of a full-time salary.
