If you have an employee starting or leaving the business during the month (and before the payroll run), you’ll have to pro-rata the pay they receive for that month.
- Firstly, you need to know their exact date of starting/leaving.
- Next, you need to know how many working days there are in the month
- Take their monthly gross pay, divided by the number of working days in the month, and then times this by how many working days they’ve actually worked in that month.
- Multiply the number of days by their daily working rate.
For example, if an employee was on a monthly gross pay of £1,500 and left the business on 4 November 2016, the calculation would be:
£1,500 divided by 22 (working days in Nov) x 4 (days actually worked) = £272.73
Your ex/new employee will be paid on the normal pay day at the end of the month.
NOTE: If a new employee starts near to the usual payroll date, they may have to wait until the following month’s payroll to get paid. This is worth flagging with a new employee so they can budget according (or you can agree to pay them outside the usual payroll run through BACS etc.)
If you need help calculating your team’s holiday entitlement and pay, give us a call on 01454 300 999, or drop an email to email@example.com