When and how are salaries Prorated in Kenya?
In Kenya, proration of salary refers to adjusting an employee’s pay when they work for only part of a month. This often occurs when an employee starts or leaves a job partway through the month or takes unpaid leave. The proration ensures the employee is paid fairly based on the actual number of days worked.
How Salary Proration Works
When calculating prorated salary, the monthly salary is divided based on the number of calendar days in the month. The employee is then paid according to how many days they worked within that month.
Steps to Calculate Prorated Salary:
- Know the monthly salary: This is the full salary an employee earns for working an entire month.
- Determine the total days in the month: This varies depending on the month (e.g., 30 days for April, 31 days for May, and 28 or 29 days for February).
- Count the days worked: This is the number of days the employee actually worked during the month.
- Calculate the prorated salary: The salary is adjusted based on the proportion of days worked out of the total days in the month.
Example:
If an employee earns KES 60,000 per month and works for 15 days in a 30-day month, they will receive half of their monthly salary, which is KES 30,000.
Fair Compensation for Partial Months
Prorating salary ensures that employees are compensated fairly for the actual days they work in any given month. For more details on how salary proration applies to your specific situation, consult your HR or payroll team.
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