# 【PAYROLL REPORT】How How are Salary Prorated handled in Taiwan

INTRODUCTION

Pro-rata is the proportional value of a part compared to its whole. A pro-rata salary is when employers pay their employees for the number of hours they worked in proportion to what they would earn if they worked full-time. This often occurs when an employee does not work for their predetermined hours in the given pay period or month.

[The Taiwan Monthly Salary Cycle]：By Calendar Month (1st - 28th/30th/31st)

and [Statutory Payable Days]:  360 days per year/30 days per month （ No matter how many working days in certain calendar month）

Q：What's the calculation rule in Taiwan  for incomplete monthly working by FTE (Full-time Employee)?

How would the salary for the monthly if the employee onboard/offboard in the Middle of the Month.

A：Prorata Caculation in Taiwan for incomplete month employed:

STATUTORY

= Round(Base Pay/30* X,2)

X= Calendar days valid for employment max at 30

e.g. Someone start on 9th May 2023 as date of commencement, with monthly salary agreed at  TWD 30000,

- So His/Her May salary will be TWD 30000/30*23= CNY 23000.

Q: How about other compensation for incomplete payable month？ie Allowance

A：There's no STATUTORY but COMMON PRACTICE are to follow the rule of Basic Salary

= Round(Base Pay/30* X,2)

Q：Then any Statutory caculation rule for annual bonus?

A:  No, there's no statutory ones, but COMMON PRACTICE  are

=Round(X/365* Entitlement for full year, 2)

X=Valid calendar days of employment in the calendar year

Reference

The month or the year specified in this code is to be calculated in accordance with the official calendar.

If a period is fixed by months or years in such a manner that they does not calculate consecutively, a month is reckoned as thirty days, a year as three hundred and sixty-five days.