>>Payroll
Wages of newly hired & terminated employees are usually prorated on their First & Last payslips.
Let's learn more about how we can compute such wages on KAMI!
PRORATE BASIS
>>Payroll> Payment Configuration >Wage Days
Before running the payroll, make sure you selected the correct prorate basis for your company.
Prorate basis will determine the total number of days that will be used in calculating the prorate wages.
SAMPLE COMPUTATION OF EACH PRORATE BASIS
We prepared a simple scenario to help you understand the difference between the prorate basis options.
Scenario:
| NEW HIRE EMPLOYEE | TERMINATED EMPLOYEE |
- Employee A was hired on November 4, 2022 (8 days of work)
- Monthly Basic Salary = 24,000
- The employee is required to work on Weekdays from 8 am to 5 pm
- Payroll & Attendance Cut-off was November 1 - 15, 2022(Semi-Monthly payroll)
- Employee A does not have any tardy or absent within the cut-off
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- Employee B was terminated on November 10, 2022 (8 days of work)
- Monthly Basic Salary = 24,000
- The employee is required to work on Weekdays from 8 am to 5 pm
- Payroll & Attendance Cut-off was November 1 - 15, 2022(Semi-Monthly payroll)
- Employee B does not have any tardy or absent within the cut-off
|
| NEW HIRE EMPLOYEE | TERMINATED EMPLOYEE |
- Total working days = 12 days (working days from the hired date including rest days)
- Total day in the cut-off = 15 days (include all days in the cut-off)
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 15
- Prorate Wage = 9,600.00
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- Total working days = 10 days (working days & rest days until termination date)
- Total day in the cut-off = 15 days (include all days in the cut-off)
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 10 / 15
- Prorate Wage = 8,000.00
|
| NEW HIRE EMPLOYEE | TERMINATED EMPLOYEE |
- Total working days = 8 days (working days from the hired date)
- Total day in the cut-off = 11 days (will depend on Workdays/week of an employee)
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 11
- Prorate Wage = 8,727.27
-
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- Total working days = 8 days (until termination date)
- Total day in the cut-off = 11 days (will depend on Workdays/week of an employee)
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 11
- Prorate Wage = 8,727.27
|
| NEW HIRE EMPLOYEE | TERMINATED EMPLOYEE |
- Total working days = 8 days (working days from the hired date)
- Total day in the cut-off = 10.875 days (please based on the formula of EEMR then divide it into 2 to get semi-monthly days )
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 10.875
- Prorate Wage = 8,827.59
|
- Total working days = 8 days (until termination date. Holiday are included)
- Total day in the cut-off = 10.875 days (please based on the formula of EEMR then divide it into 2 to get semi-monthly days )
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 10.875
- Prorate Wage = 8,827.59
|
| NEW HIRE EMPLOYEE | TERMINATED EMPLOYEE |
- Total working days = 8 days (working days from the hired date)
- Total day in the cut-off = 10.83335 days (Fixed monthly days / 2 to get semi-monthly days)
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 10.83335
- Prorate Wage = 8,861.54
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- Total working days = 8 days (until termination date)
- Total day in the cut-off = 10.83335 days (Fixed monthly days / 2 to get semi-monthly days)
- Prorate wage = Wage * Total Working days / Total days in the cut-off
- 12,000 * 8 / 10.83335
- Prorate Wage = 8,861.54
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