pay when leaving mid-month

dave2

Anyone know how a salary should be calculated when a salaried employee leaves midway through the month?

My first thought was simply multiply the monthly salary by last working date / days in the month but I realised that the figure is quite different if I do days worked / working days in the month because of the weekend cut-off.

Did some googling but didn't come up with anything. It'd be very helpful if you're able to provide a reliable reference as I'll need something to take to the higher-ups.

SuzieSue

If you are paid monthly, then the accurate was to do it is as follows:

If your gross monthly pay is £2,000 and you leave on 9th July this year, then you need to add up the number of working days in July - if you work Mon-Fri this will be 23 days. You then need to work out the number of days you have worked in July which is 7 working days if you work Mon-Fri.

Therefore you should be paid 7/23 x £2,000 = £608.69

Unfortunately, a lot of payroll departments do not do it this way and as there is no legally correct way there in nothing really you can do about it. So you might gain or lose depending on how they calculate it.

agrinnall

The only way to know is to ask your payroll department, Suzie has suggested one method but many employers will use different methods, which may not necessarily be wrong.

dave2

SuzieSue wrote: »

there is no legally correct way there in nothing really you can do about it.

Alas, this is what I feared. Exactly answers my Q tho so thanks very much for replying!

agrinnall

It's not really true that there's nothing you can do about it, what you can do is find out how the part pay is calculated then check your final pay slip to ensure its been done correctly - you wouldn't be the first person to find that it was wrong.

SuzieSue

agrinnall wrote: »

It's not really true that there's nothing you can do about it, what you can do is find out how the part pay is calculated then check your final pay slip to ensure its been done correctly - you wouldn't be the first person to find that it was wrong.

The point I was making was that if the OP didn't agree with the method of calculation then the payroll department would be unlikely to change it, not the actual calculation itself - obviously she should check that.

theoretica

My company use the method you first suggested so if your last working day is the 15th July you get 15/31 of your salary for that month. Which works in the employee's favour if her last day is a Monday towards the start of the month, and in tthe company's favour if it is a Friday towards the end of the month.