How Prorating Works
Prorating is calculating an employee's pay based on the exact number of days they worked, rather than the full month. This is necessary when an employee is hired or resigns in the middle of a payroll period.
To do this accurately, you must first determine their Equivalent Daily Rate (EDR) based on the company's annual working days factor. Once the daily rate is established, simply multiply it by the number of days they actually worked in that period.
Disclaimer: This is for estimation purposes only. Actual computations may vary based on exact attendance and specific company policies.