How are salaries prorated in Taiwan?

Modified on: Fri, 5 Dec, 2025 at 1:12 PM

When an employee works for only part of a month,such as joining or leaving mid-month,their salary needs to be prorated. This means calculating pay based on the proportion of days worked compared to the full month.

Understanding Pro-Rata Pay

Pro-rata pay ensures employees are compensated fairly for the actual time worked. In Taiwan, this typically applies when:

An employee onboards or offboards mid-month
An employee does not work the full scheduled hours in a pay period

Taiwan Salary Cycle

Monthly cycle: Calendar month (1st to 28th/30th/31st)
Statutory reference:
- Month = 30 days
- Year = 365 days
  (As per Article 123 of the Civil Code)

Prorated Salary Calculation

For full-time employees working an incomplete month:

Formula:

Prorated Salary = Round(Base Salary ÷ 30 × X, 0)

Where:

Base Salary = agreed monthly salary
X = number of calendar days worked in that month

Example:
Employee starts on 9 May with a monthly salary of TWD 30,000.

Days worked: 23 (May 9–31)
Calculation:

30,000 ÷ 30 × 23 = TWD 23,000

Other Compensation (e.g., Allowances)

No statutory rule, but common practice follows the same formula as base salary:

Allowance = Round(Base Allowance ÷ 30 × X, 0)

Annual Bonus Calculation

No statutory rule, but common practice is:

Prorated Bonus = Round(X ÷ 365 × Full-Year Entitlement, 0)

Where:

X = number of calendar days employed in the year

Legal Reference

Article 123 of the Civil Code:

A month is reckoned as 30 days, a year as 365 days for calculation purposes.

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Taiwan