Prorated Salary Calculation: Understanding the Basics in BrioHR

Learn how to calculate prorated salaries using BrioHR's formulas for Malaysia Payroll. Explore detailed examples and understand the impact of different calculation bases like fixed days, working days, and all days in the current month.

In BrioHR, there are three formulas to calculate the basis of prorated salary:

  1. Fixed Number of Days
  2. Working Days in the Current Calendar Month
  3. All Days in the Current Calendar Month

Understanding how the daily rate is calculated for each formula is crucial.

If you're looking for instructions on how to set up the basis of prorated salary calculation, please refer here.

NOTE:

The final overtime earnings will be rounded to the nearest figure.


1. Fixed Number of Days (Working Days Based on Office Settings)

Formula:

Salary / (Number of fixed days set in the system) = Daily Rate

Daily Rate x Number of working days in the month = Prorated Salary

Example:

  • Salary: RM 3000
  • Prorated Fixed Days set in the system: 26
  • Join Date: 11 September 2023
  • Number of Days Employee Worked: 15 days (excluding weekends)

Calculation:

RM 3000 / 26 = RM 115.38 (Daily Rate)
RM 115.38 x 15 days worked = RM 1,730.77 (Prorated Salary)

NOTE:

The system calculates an employee's number of working days based on the "working days" set in the Office Settings. If you select 5 days (e.g., Mon - Fri), the system excludes unselected days.

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NOTE:

Public holidays will be captured as working days using this setting.


2. Working Days in the Current Calendar Month (Excluding Weekends)

Formula:

Salary / (Total days in the month - Total weekends in the month) = Daily Rate
Daily Rate x Number of days worked in the month = Prorated Salary

Example:

  • Salary: RM 3000
  • Join Date: 11 September 2023
  • Working Days in September 2023: 21 days
  • Number of Days Employee Worked: 15 days (excluding weekends)

Calculation:

RM 3000 / 21 working days = RM 142.86 (Daily Rate)
RM 142.86 x 15 days worked = RM 2,142.86 (Prorated Salary)

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NOTE:

The system calculates the number of working days based on the "working days" set in the Office Settings. Public holidays will be captured as working days using this setting. This formula is applied only when 'Working Days in the Current Calendar Month' is selected as the basis for prorated salary calculation.

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NOTE:

Public holidays will be captured as working days using this setting.


3. All Days in the Current Calendar Month (Including Weekends)

Formula:

Salary / (All days in the calendar month) = Daily Rate
Daily Rate x Number of days worked in the month = Prorated Salary

Example:

  • Salary: RM 3000
  • Join Date: 11 September 2023
  • Total Days in September 2023: 30 days
  • Number of Days Employee Worked: 20 days (including weekends)

Calculation:

RM 3000 / 30 days = RM 100.00 (Daily Rate)
RM 100.00 x 20 days worked = RM 2,000.00 (Prorated Salary)

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