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How To Work Out Pro Rata Salary

How Is Pro Rata Annual Leave Calculated For Part Time Employees

How to work out a pro rata salary isn’t the most challenging task in the world but there are pitfalls to avoid. In this article we will walk you through how to do the maths with some examples to support you. Nothing irritates staff more than not being paid correctly, so this is a skill that you will need to have if you are involved in payroll calculations. 



What Is Pro Rata Salary?

Pro rata is literally Latin for ‘proportional’ and that is all we are dealing with here. Pro rata salary is the amount of money paid to a part time worker for their time worked. It is usually based on the normal payment plan of full time employees but adjusted according to the number of hours worked by the part time worker.

For example, if a full-time employee clocks 30 hours per week and earns £750 a week gross salary (before tax), they will earn £25 an hour. A part-time employee working 25 hours per week would have the same hourly rate of £25, but their pro rata salary would be £500 a week.

As a part time worker, it is beneficial to understand and know how to work out and calculate pro rata salary. This means knowing the full time salary of the intended job, calculating the expected hourly rate, and weekly and annual salary, as this will help in knowing how much you are earning for your time spent working.

In this article, the process in which a worker can use to work out their pro rata salary will be discussed thoroughly while also answering some of the most commonly asked questions about working part time.


How To Work Out Your Pro Rata Salary UK

It’s not always clear what your salary will be as a part time worker. Roles are often advertised with regards to the full time compensation package with an additional note stating it would be calculated pro-rata. To select the best role that fits your skills, it is important to also know how to calculate the take home pay when reviewing roles to apply for. .

Let’s go through the few steps needed to calculate the pro rata salary of a given job.

As we are discussing gross salary here tax doesn’t come into it but higher income jobs can of course drop below thresholds from lower salaries, thus net salaries may look much closer than the initial gross difference .


1. Find out the full time salary

The first step in understanding and calculating the pro-rata salary of a job, is finding out the full time salary of the job. This is usually included in the job advert or specification, along with an indication that it is pro-rata. Alternatively, the full time salary could also be found in your contract of employment if you’ve already been hired.

Example: a role is advertised as having a full time salary of £25,000.


2. Calculate your hours

Once the full time salary has been discovered, calculating the number of hours you’ll be awarded or working each week should be the next step. This number should also be indicated in the job advert, or included in your awarded contract of employment.

Example: you are contracted to work 15 hours per week.


3. Calculate your hourly rate

Proceeding from calculating the number of hours contracted, the next step is calculating the hourly rate. Calculating the hourly rate is achieved by dividing the full time salary by 52 (the number of weeks in a year), and then by 40 (the standard full time weekly working hours). This will give you the hourly rate of the job.

Example: £25,000 / 52 = £480.77 / 40 = £12


4. Calculate your weekly salary

Proceed to multiply the hourly rate by the contracted weekly working hours.

Example: £12 x 15 = £180


5. Calculate your annual pro rata salary

Finally, multiply the weekly salary by 52 (weeks in a year), this will give you the annual pro-rata salary.

Example: £180 x 52 = £9360


What Does A Competitive Salary Mean


What Is The Difference Between Pro Rata And Per Annum?

You may have noticed these terms used together when looking at job adverts. It’s important to know the difference between pro rata and per annum, as they can affect your take home pay significantly. Per Annum literally means ‘per year’ and the two terms are often put together to tell you what the full entitlement would be if it were full time.

As described, while searching or applying for jobs, you may have come across both terms (Pro rata and per annum) being used together on an advert, but what does this mean? It’s important to know as each one can significantly affect your take home salary pay.

As defined above, pro-rata salary is the salary an individual is paid for a part-time role, based on the full time salary, but adjusted to the hours worked per week.

Per Annum Salary is also known as the full time salary expressed in an annual figure. Therefore, it is not adjusted to the number of hours an individual is working in a part-time role and will be the take home pay for a full time role.

So, working part-time means your pro-rata salary will be lower than the per annum salary.


How Is Pro Rata Annual Leave Calculated For Part-Time Employees?

One good advantage is, part time employees are entitled to the same annual leave as full-time workers, but it will also be calculated pro rata according to the number of hours worked each week.

For example, a full-time employee working 40 hours per week may be entitled to 28 days of paid annual leave each 12 months, while a part time employee working 20 hours per week might then be entitled to 14 days of paid annual leave every 12 months.

This means that the part time employee has the same duration of paid holiday as a full time employee, when compared to the amount of hours worked. Although, the annual leave of a part time employee is distributed over fewer weeks compared to full time employees. This is the working policy of pro-rata annual leave for part time employees.


How Many Hours A Week Is Part-Time?

While it can vary depending on location or job type, a part-time job is generally defined as any position or role which offers fewer working hours than the standard number of hours in a full time job, which is usually around 37 to 40 hours.

Generally, a part time employee is limited between 1 and 34 hours per week. This may vary from a single shift to several shifts or to a limited period of days. It’s important to check the contract or job letter to determine how many hours is required to work each week


Types Of Part-Time Working Patterns

When it comes to part-time contracts and jobs, the variations are quite much. Below are a few of the different variations.

  • Shorter working days
  • Alternating working weeks
  • Working for a limited duration
  • Less working days per week
  • Alternating job with another employee

These are just variations of part time job patterns available. It’s important to check and clarify the contract or job advert while preparing for the role you’re being awarded.

Most times, it might be required to negotiate comfortable working hours, compensation package and pattern with the employer. The best thing is to have an open mindset and honest dialogue about your expectations for the role.

It’s also important for individuals to understand that when negotiating part-time working hours, or variation of the part-time work, they should consider the best and reasonable option for both them and the employer. This will ensure an agreement that works for both sides is reached.


Benefits Of Working Part-Time For Employees

Aside from the stand out benefit of working part-time, being the access to more free time and flexible working hours, there are few other advantages to working part-time.

  • Part-time employees often gain access to greater flexibility in their working schedule and can arrange their shifts according to their commitments outside work, which makes it easier to balance work and social life.
  • Working part-time is often chosen by individuals owing to commitments in other areas of their life such as child care or hobbies.
  • Sometimes, part-time work can be the first step towards acquiring a full time role. Many employers often opt to offer individuals part time roles and monitor them to see if they are a great fit for the role, before offering them the opportunity of a full time role. This means that it could be worth considering a part time role initially if you’re looking to get a foot in the door of a particular company.


Benefits Of Hiring Part-Time Workers For Employers

Some employers are sceptical of part-time roles, believing that full time employees are more reliable and productive in the long run but this isn’t necessarily true.

Part-time employees can help spread the workload among a larger group of people, allowing the company or organisation to get more done in less time. Part-time employees’ can be especially useful during busy periods or dealing with large projects.

Part-time workers may also grant the employer access to a wider range of skills and experience that can be beneficial for the organisation. Part-time employees may also have access to a broader network of contact that could prove useful for marketing and other purposes.

Sometimes, part-time employees might be more productive due to lower levels of stress due to improved work-life balance. This means part-time workers can get more productive during certain stages due to their simple schedule.

Having a team of part time employees’ also gives employers the access to increased flexibility. Since part time workers are limited to a certain amount of hours, they could be rotated to get large amount of work done in short periods, which is not applicable to full time employees

Ultimately, hiring part-time employees’ can prove beneficial for both employers and employees, because It gives businesses access to different skills and provides workers with a more flexible work-life balance. However, it is important to ensure that part-time workers are treated with the same laws that apply to full-time employees and fairly.


Disadvantages Of Hiring Part-Time Staff For Businesses

Although there are many benefits in hiring part-time employees, there are still a few disadvantages employers need to be aware of.

The main disadvantage is that part-time employees are not always available which can make it difficult to communicate and collaborate with part time employees, given the fact that they work less hours than other employees. Therefore employees need to ensure the schedule and variation of part-time roles offered to individuals to stay in touch.

Part-time employees might also lead to confusion and division within full time and part time employees. This can also lead to feelings of resentment, as part time workers may feel they are not valued or respected by the full time employees in the work area.

Part-time employees might also get stressed and reduce productivity if their schedule is not arranged properly and struggle to fit their job into the contracted hour.

Finally, it can be difficult to retain part-time staff, as they can gain access to different opportunities and options when it comes to finding work elsewhere. This means employees need to find better incentives and motivation that will properly motivate and retain part-time employees.


What Are Your Employment Rights As A Part-Time Worker In The UK?

When working a part time role in the UK, you are entitled to the same rights and protection as any other employee which includes the right to receive proper compensation for the work that you do and protection from unfair dismissal.

Part-time employees also have the right to take part in bargaining or trade union activities, as well as benefits such as maternity/paternity leave and compassionate leave.

Part-time workers also gain access to the same benefits such as bonuses, pensions and other forms of compensation packages as their full time colleagues.

Furthermore, it is illegal for part time workers to be treated any less favourably than full time employees in terms of working hours, training opportunity, career progression and any extra compensation.

In summary, part-time employees’ in the UK have access to the same rights as any other employee and must be treated equally and fairly. Therefore, it is important part time employees are aware of their rights to ensure they are being treated fairly.


How To Negotiate Your Part-Time Salary

Being a part-time worker doesn’t mean you need to accept your salary package as advertised, you can always negotiate to try and get a better offer. If the salary isn’t able to be changed, weigh up any other benefits that the company can offer before deciding whether to accept the job offer.

Before negotiating, its important employees are aware of the industry standard when it comes to situations like salary that applies to them. This will give them an idea and good starting point when it comes to negotiations and bargains.

An employee should always make sure they are confident when conversing with the hiring manager. They should be able to explain their reasonings clearly and also be able to back it up with honest facts and figures.

Part-time employees’ should be able to defend the reasoning that they deserve the higher salary while making sure they don’t come across as demanding or aggressive while negotiating.

It is also important for employees to be prepared for the outcome of their negotiation. Meaning, if the employer or hiring manager is not willing to increase the salary, they may need to re-evaluate if the job is the right fit.

They should also remember, it’s always worth trying to bargain and negotiate, and there’s no reason to not walk away if the job doesn’t feel right or isn’t a right fit.

By following these tips, an employee should be able to successfully negotiate a higher salary as a part-time worker.


Final Thoughts

Pro-rata salaries and annual leave entitlements can get confusing for part-time employees, but it’s important they understand them, so they know what to expect when taking on a role. With the right information and choices, they can ensure they are being paid properly and enjoy the benefits of working part time.

In this article, how to calculate pro rata salary was explained as well as answering some of the most commonly asked questions about part-time employment. Both employees and employers can take advice from ACAS if there are any issues that they need further clarification on.



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