Prorated salary calculator
What is a Prorated Salary Calculator?
When someone joins or leaves in the middle of a month, or takes unpaid leave, their salary for that month is prorated: paid only for the portion of the month they were entitled to. Payroll teams use different day-count methods, and the choice changes the amount. This calculator shows the result for each method so you can match your company policy.
How to use it
- Enter the monthly salary.
- Enter the joining date, last working day, or number of loss-of-pay (LOP) days.
- Choose the method: calendar days, working days or fixed 30 days.
- Read the prorated amount.
Methods
- Calendar days:
Monthly salary × days paid / days in month. - Working days:
Monthly salary × working days paid / working days in month. - Fixed 30-day month:
Monthly salary / 30 × days paid, common in Indian payroll.
Worked example
Monthly salary 60,000, employee joins on 12 November 2026 (November has 30 days).
- Calendar days: 19 days paid (12 to 30 November). 60,000 × 19 / 30 = 38,000.
- Working days: November 2026 has 21 weekdays; from 12 November there are 14. 60,000 × 14 / 21 = 40,000.
For a 31-day month, the calendar method pays slightly less per day than the fixed 30-day method, which is why companies define the method in their policy.
Loss of pay
Unpaid leave is deducted the same way: with 3 LOP days in a 30-day month, the deduction is 60,000 × 3 / 30 = 6,000.
Tips
- Use one method consistently for all employees and document it.
- Prorate fixed allowances in the same way unless policy says otherwise.
- Statutory deductions such as PF are based on the prorated earnings.
Frequently Asked Questions
How is a prorated salary calculated?
Divide the monthly salary by the number of days in the period used by your policy, then multiply by the days the employee is paid for.
Should I use calendar days or working days?
Either is acceptable if the policy states it and it is applied consistently. Calendar days are the most common.
What is loss of pay?
Unpaid leave days that are deducted from the monthly salary, using the same daily rate as for prorating.
Why does the daily rate differ between months?
With the calendar-day method, the daily rate depends on how many days the month has. The fixed 30-day method keeps it constant.