How and why are salaries prorated in South Africa?

Proration of salary is a common practice used to calculate an employee's pay based on the actual number of days worked in a given month. This is particularly useful when an employee starts or ends employment mid-month or takes unpaid leave.


Daily Rate Calculation:

To prorate a salary, you first need to determine the daily rate. In South Africa, the daily rate is typically calculated using the following formula:

  • Formula:
    Monthly Income ÷ 21.67 days (average working days per month)

This formula assumes an average of 21.67 working days in a month, accounting for weekends and public holidays.


Prorated Salary Calculation:

Once the daily rate is determined, the prorated salary can be calculated based on the actual number of days worked during the month.

  • Formula:
    Daily Rate × Days Worked in the Month

This calculation ensures that the employee is paid accurately for the proportion of the month they worked.


Example Calculation:

  • Monthly Salary: R30,000
  • Days Worked: 15 days in the month

  1. Daily Rate Calculation:
    R30,000 ÷ 21.67 ≈ R1,384.84 per day

  2. Prorated Salary Calculation:
    R1,384.84 × 15 ≈ R20,772.60

In this example, if an employee with a monthly salary of R30,000 worked for 15 days in the month, their prorated salary would be approximately R20,772.60.

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