How and when are salaries prorated in Austria?

In Austria, salaries are typically prorated based on the number of days worked within a given period. This ensures fair compensation for employees who have worked only part of the month or year.


Calculation Method

To prorate a salary, use the following approach:

  1. Determine the Monthly Salary: Establish the total gross monthly salary as per the employment agreement.

  2. Calculate Daily Rate:

    • Daily Rate = Monthly Salary / Number of Days in the Month
  3. Calculate Prorated Salary:

    • Prorated Salary = Daily Rate × Number of Days Worked


This calculation method is applied for situations such as:

  • Employees joining or leaving mid-month
  • Absences affecting the total working days


This approach ensures that employees are compensated fairly based on the actual number of days they work within the pay period.

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