The better way to calculate pro rata pay entitlement is to work it out by hours rather than days. In other words, it’s more helpful to think about it as a wage, rather than a salary. If an employee would receive £25,000 for a 40-hour week, then you can easily work out the hourly rate, which is £ 25,000 / 40 = £625. Once you’ve figured out the hourly rate, you should be able to reach the pro rata wage just by multiplying the hourly rate by the number of hours the employee will work. If you’re still struggling with how to work out pro-rata pay, remember the basic equation: Annual salary / full-time hours x actual work hours.Ī part-time employee still has holiday entitlement, so let’s work that out too. There’s a quick and simple trick for working out an employee’s pro rata holiday. Multiply the number of days they work each week by 5.6. If a pro rata employee works 3 days a week, then their holiday entitlement is 3 x 5.6, or 16.8 days. Obviously, giving staff 0.8 of a holiday is awkward, for timekeeping purposes and the employee. It’s usually worth rounding this up to the nearest whole number, 17 in this case.
Well, the basic statutory holiday entitlement of a full-time employee is 28 days. Five, multiplied by 5.6, gives us the full 28 days’ entitlement.Īnother important element to consider when employing someone on a pro-rata basis is benefits.
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