Pro rata issue  4 month contract
Lucky_Phil_2
Forumite Posts: 44
Forumite
Hi All,
I was given a 4 month contract which started on 4 Sep 2023. I am on their books and being paid PAYE.
I have just received my payslip and they have pro rated this as I didn't work on 1 Sep 2023 (agree they should pro rata it)
Their calculation is
ANN SALARY/260 * 20 = Sep gross salary
260 = working days in a year
20 = days worked in Sep
All the advice I have read is this should be calculated on
Annual salary / fulltime hours x actual work hours
This gives a larger gross salary for this month
Also in my contract I am not expected to work for 260 days as this is only a 4 month contract so calculating this on a yearly basis seems to me unfair/an attempt to pull the wool over my eyes
Can anyone advise on this please
Thanks
Phil
I was given a 4 month contract which started on 4 Sep 2023. I am on their books and being paid PAYE.
I have just received my payslip and they have pro rated this as I didn't work on 1 Sep 2023 (agree they should pro rata it)
Their calculation is
ANN SALARY/260 * 20 = Sep gross salary
260 = working days in a year
20 = days worked in Sep
All the advice I have read is this should be calculated on
Annual salary / fulltime hours x actual work hours
This gives a larger gross salary for this month
Also in my contract I am not expected to work for 260 days as this is only a 4 month contract so calculating this on a yearly basis seems to me unfair/an attempt to pull the wool over my eyes
Can anyone advise on this please
Thanks
Phil
0
Comments

Mathematically it makes no difference if they use hours or days. You just multiply the number of days by the working hours in the day &, since you're doing it to both sides of the equation, it cancels out
0 
Not my point, they are using an annual basis to pro rata a 4 month contract. X is annual salary.
Their calculation (52 week basis)
(X/260) * 20
My calculation (solely this month basis)
20*X/(21*12)
Substitute any number for X and you will see that the latter is a greater figure0 
Lucky_Phil_2 said:Not my point, they are using an annual basis to pro rata a 4 month contract. X is annual salary.
Their calculation (52 week basis)
(X/260) * 20
My calculation (solely this month basis)
20*X/(21*12)
Substitute any number for X and you will see that the latter is a greater figure
Not counting holidays, are you expected to work from Monday to Friday for every week you are there or are you going to work exactly 20 days each month? Which may not be the same thing!0 
There's 2 different prorotas at once here
There's who much of the annual salary you should get for a 4 month contract.
and then how much you should get paid for only working 20/21 days in one month (inferring there were 21 working days in sept)
20*X/(21*12)
Is 21 working days in a month & 12 is months in a year so that's 252 working days in the year?
Not every month will have 21 working days
0 
Lucky_Phil_2 said:Not my point, they are using an annual basis to pro rata a 4 month contract. X is annual salary.
Their calculation (52 week basis)
(X/260) * 20
My calculation (solely this month basis)
20*X/(21*12)
Substitute any number for X and you will see that the latter is a greater figure#2 Saving for Christmas 2023  £1 a day challenge DONE and DUSTED! £1460£14600
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