# When and how are salaries prorated in Portugal?

Understanding how salaries are prorated in Portugal is crucial, especially when employees start or leave a job mid-month, or take unpaid leave. Prorating ensures employees are fairly compensated for the time they actually worked. Here's a detailed guide on how to prorate salaries in Portugal:

## Proration Method

The process of prorating a salary in Portugal involves the following steps:

**Determine the Monthly Income**- Identify the gross monthly salary specified in the employment contract. This amount represents the full salary an employee would earn for working the entire month.

**Calculate the Total Working Days in the Month**- Determine the number of working days in the month. This calculation excludes weekends and public holidays. For this purpose, "working days" typically refer to the days an employee is expected to work.

**Identify the Days Worked in the Month**- Count the number of days the employee actually worked during the month. This includes the first and last working days and any full days worked in between.

**Calculate the Daily Rate**- Divide the monthly income by the total number of working days in the month to determine the daily rate of pay.

**Determine the Prorated Salary**- Multiply the daily rate by the number of days the employee worked in the month to get the prorated salary.

## Example Calculation

Let’s walk through an example to illustrate this process:

**Monthly Income**: €2,000**Total Working Days in the Month**: 22**Days Worked by the Employee**: 10

**Step 1**: Calculate the daily rate.

- Divide €2,000 by 22, which equals approximately €90.91.

**Step 2**: Calculate the prorated salary.

- Multiply €90.91 by 10, resulting in €909.10.

In this example, the prorated salary for the month would be €909.10.

## Important Considerations

**Public Holidays**: If a public holiday falls on a day the employee would have worked, it should be included in the total count of working days when calculating the daily rate.**Part-Time Employees**: The same proration process applies, but the monthly income used should be the part-time salary.**Unpaid Leave**: Days of unpaid leave should not be included in the days worked when calculating the prorated salary.

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