Pro rata pay
If you're applying for a part-time job, it’s likely to be advertised with a pro rata salary. The problem is, that the phrase isn’t exactly widely understood. So we’re betting you have questions like what does pro rata mean and how does it affect your workplace rights? The Mix explains everything you need to know, including how to work out pro rata pay and holiday entitlements.
What does pro rata mean?
Let’s start with the question that’ll (hopefully) make everything else make sense: ‘What does pro rata mean?’
Pro rata, meaning ‘proportionally’ or a ‘proportion of’, refers to salary. It essentially means the salary a full timer would receive for the same job.
What is pro rata salary?
With the pro rata meaning out of the way, it’s time to focus on what you really came to this article for – the money.
If you’re paid on a pro rata basis, your salary has to be calculated. Your job will do this according to what proportion of full time hours your job would make up. For example, if the salary is quoted at £18,000 pro rata (based on a full time week of 40 work hours) and you are working 30 hours per week, you will be paid an annual salary of £13,500.
How does it affect my rights at work?
So, you still have all the statutory and contractual terms and conditions that your full-time colleagues will have, such as pensions, holidays, maternity pay and parental leave. The catch is that you’ll only get them in the same proportion as you work. To help you get a better idea of what this means, we’ll give you an example; if a full timer works 40 hours per week and you work 20 hours per week you’ll get half the pay, half the hours worth of holiday and so on.
How to work out pro rata pay
How to work out pro rata pay? First, you’ll need to get the following information:
- Roughly where you’ll be placed on the salary scale so that you have a salary of reference;
- The number of hours the company considers as full time;
- How many hours a week you’ll be working;
- How many weeks a year you’ll be working.
Now it’s the *fun* part. Just follow these five calculation steps:
- Divide the annual salary if you worked full time by 52
- Then divide that answer by a full time employees’ number of hours (this will give you the hourly rate)
- After that, multiply the hourly rate by the number of hours you work each week (this will give you a weekly salary)
- Multiply this by 52 or the number of weeks worked (this will give you an annual salary)
- Divide this by 12 if you want to know your monthly pro rata wage.
It’s so simple to work out the time that gets salaried, right? But if you can’t do it yourself, don’t worry. All you have to do is get a pro rata calculator a.k.a that one person you know who’s a genius at maths.
How to work out holidays
We should mention that even if you work pro-rata, you’ll still get holidays.
Part time workers are entitled to holidays based on a full time worker’s entitlement to 28 days of paid holidays. You can work out your specific holiday entitlement by multiplying the number of days you work each week by 5.6. So, if you work three days a week, your holiday entitlement will be 3 x 5.6, which is 16.8 days. You can learn more about how much holiday you’re entitled to in this article. Plus you can read our article on part time work here to find out if it’s for you.
By Nishika Melwani
Updated on 03-Apr-2022
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