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What is pro rata salary?

A pro rata salary is a salary that is proportionally adjusted based on the number of hours worked compared to a standard full-time schedule.

How to calculate pro rata salary?

To calculate a pro rata salary, you need to know: 

• The full-time annual salary.
• The number of hours worked per week or the fraction of the year worked.
• The standard full-time hours or days per week/month/year.

Example Calculation: If a full-time employee earns £30,000 per year working 37.5 hours a week, and a part-time employee works 25 hours a week, how much would the part-time employee's pro rata salary be? 

Calculate the fraction of time worked: (25 hours / 37.5 hours) = 0.6667

Apply this fraction to the full-time annual salary: £30,000 * 0.6667 = £20,000 per year

How to work out pro rata holiday in the UK?

In the UK, the minimum holiday entitlement for full-time workers is 28 days (including bank holidays). For part-time workers, this entitlement is prorated.

For an employee working 20 hours a week out of a standard 37.5-hour full-time schedule, how many days of holiday would they get if the full-time entitlement is 28 days?

Calculate the fraction of time worked: (20 hours / 37.5 hours) = 0.5333

Apply this fraction to the full-time holiday entitlement: 28 days * 0.5333 = 14.93 days, which can be rounded to 15 days for simplicity.

FAQ

What is a pro rata basis?

Working on a pro rata basis means that payments, benefits, or entitlements are calculated based on the proportion of time worked or the level of involvement in a project or employment.

Who is eligible for pro rata pay?

• Part-time employees.
• Employees who work variable hours.
• Employees who start or leave a job partway through the year.

Are bank holidays included in pro rata holiday entitlement?

Yes, in the UK, bank holidays are included in the minimum holiday entitlement. They are factored into the total entitlement when calculating the pro rata holiday for part-time employees. However, specific details can vary depending on the employer's policies and the employment contract.